LaBelleSaison Posted September 18, 2017 Share Posted September 18, 2017 17 September 2017 https://www.bis.org/publ/qtrpdf/r_qt1709f.htm Quote New cryptocurrencies are emerging almost daily, and many interested parties are wondering whether central banks should issue their own versions. But what might central bank cryptocurrencies (CBCCs) look like and would they be useful? This feature provides a taxonomy of money that identifies two types of CBCC - retail and wholesale - and differentiates them from other forms of central bank money such as cash and reserves. It discusses the different characteristics of CBCCs and compares them with existing payment options. Quote The blockchain version of DLT has successfully powered Bitcoin for several years However, the system is not without drawbacks: it is costly to operate (preventing double-spending without the use of a trusted authority requires transaction validators (miners) to employ large amounts of computing power to complete "proof-of-work" computations); there is only probabilistic finality of settlement; and all transactions are public. These features are not suitable for many financial market applications. Current wholesale DLT payment applications have therefore abandoned the standard blockchain technology in favour of protocols that modify the consensus process in order to allow enhanced confidentiality and scalability. Examples of protocols currently being tested by central banks include Corda and Hyperledger Fabric. Corda replaces blockchain with a "notary" architecture. The notary design utilises a trusted authority and allows consensus to be reached on an individual transaction basis, rather than in blocks, with limited information-sharing. Nikkei reported the report this morning with the title of "Central banks' crypto currencies, challenges in anonymity and settlement cost -BIS Report" https://www.nikkei.com/article/DGXLASDF17H0H_X10C17A9NN1000/ (in Japanese) Hodor and bones 2 Link to comment Share on other sites More sharing options...
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