cryptocurrency

European Central Bank Announces New DLT Proof-Of-Concept Called EUROchain – Forbes


On December 17th, the European Central Bank published a new proof-of-concept project called EUROchain. The report published on the ECB’s website states, “That proof of concept boasts several novel features developed by the ESCB’s EUROchain research network (with the support of Accenture and R3) using distributed ledger technology (DLT).” Based on the R3’s Corda platform, the project is a study on how privacy can be balanced with compliance procedures, like anti-money laundering rules, while DLT helps drive down the cost of transactions.

The EUROchain use case is based on a design, as described in the report, which relies on intermediaries that have access to central bank accounts and can draw on reserve balances held at the central bank to provide central bank digital currency to users. The intermediaries would process transactions on behalf of their clients. This is an example of how DLT can be integrated on a larger scale by central banks. Although, the report mentions, this is a simplified case typical of proof of concepts. Part of the lessons learned in the report’s conclusion points out that “Scalability of the prototype was for example not analyzed.”

The study is different than other stablecoin use cases, like Facebook’s Libra or Utility Settlement Coin. EUROchain does not seem to study individual consumer use cases and is focused more on bank integration of enterprise blockchain innovations. 

Also announced this year, similar projects by other central banks, like the FedNow service and Payments Canada, focus on faster payment services but not necessarily using DLT designs. FedNow, in context, may benefit individuals and businesses. The projects mentioned are in different stages of development but suggest more efforts by central banks to refine payment services globally.



READ SOURCE

Read More   American Airlines spikes 31% as Reddit traders direct their attention toward another heavily shorted stock - Business Insider

This website uses cookies. By continuing to use this site, you accept our use of cookies.