ECB Hesitant on Blockchain

Note from the Publisher:  I am not a market technician, so there could be a legitimate reason for this, but we still have to play devil’s advocate here.  A member of the Executive Board of the European Central Bank, speaking at SIBOS, has said that adoption of Distributed Ledger Technology (blockchain is a peer-to-peer distributed ledger technology) could have damaging effects on the Eurosystem at large. 

And he may have a point, because if it is not adopted and implemented unilaterally, there could be all kinds of unforeseen havoc with systems that don’t talk to one another the same way anymore.  ON THE OTHER HAND, this technology is here and now and it’s being explored by central banks and massive private and publicly traded banks all over the world.  It’s happening.  The genie’s out of the bottle.  Catch up, kind sir.

“A senior executive at the European Central Bank has spoken out about the potential damage to financial market integration from the haphazard uptake of distributed ledger technologies by the Bloc’s banks.

Speaking at the annual Sibos event in Geneva, Yves Mersch, a member of the executive board of the ECB, acknowledged the potential of distributed ledgers to fundamentally change securities and payments business.

However, as a technology that is still in its infancy, Mersch says there are substantial functional, operational, governance and legal aspects which need to be carefully looked at before thinking about possible mass adoption.”

Read Full Article at Finextra