Central Banks & Blockchain

Note from the CEO:  Oh, so this blockchain thingy we heard about a few years ago wasn’t just a toy for games and “funny digital money”? Well, hmmmmm, maybe we should look at it and join the party. Yeah, central banks are finally “getting it”.

Central banks the world over are taking a much more focused view of the infrastructure behind bitcoin which we all recognize as blockchain. Not taken too seriously a few very short years ago the central banks are now recognizing the huge transformation in stock trading, payments, currencies, etc and are playing a bit of catch up. China, Russia, the UK and many others a rapidly changing their stance on the new fintech. Probably ordering coffee and donuts for the committee meetings right now.

“Not so long ago, blockchain technology was still something of a peripheral concern for most traditional financial institutions. Seen mainly as simply a part of the underlying infrastructure behind virtual currencies like Bitcoin, it was not considered a priority by many banks.

But this view is now changing rapidly as its potential to transform the way many key activities, from payments to stock trading, becomes more recognised. Indeed, one member of the US Federal Reserve’s board of governors Lael Brainard recently described it as the “most significant development in many years” for payments and settlements.

Indeed, Ms Brainard’s comments highlight how the Fed is taking a much closer interest in blockchain and what it can offer to the financial services sector. Finextra noted that the regulator will publish its own paper on the impact of distributed ledger technology such as blockchain later this year.

Elsewhere, the Financial Times reports that other countries around the world, including the UK, Russia and China, are also examining what the implications will be as the world embraces innovations such as digital currencies.”

Source: Banking.com