24 APR 2017
Central banks could allow access to accounts around the clock if they used blockchains or cryptocurrencies, a senior Bank of Japan official speculated last week.
Speaking during a finance forum on 21st April, deputy governor Hiroshi Nakaso touched on the subject of so-called central bank digital currencies, or CBDCs, and their potential impact on how people interact with their accounts at a given time.
One proposal is to offer central bank accounts to retail customers through a CBDC (something that officials at the Bank of England have highlighted in the past). In his speech, Nakaso brought up this idea, suggesting that, depending on the degree of adoption, such an arrangement could give account holders continuous access to funds. Read more.
The Economic Commission for Latin America and the Caribbean (ECLAC) has stated Blockchain could help improve costs in troubled banking sectors.
In a report released at the end of April, the ECLAC, which is a regional commission of the United Nations, said the technology held particular promise in reducing so-called “de-risking” practices among local banks.
De-risking, it says, is the phenomenon witnessed across the developing world in which banks shy away from deals which would cost too much in regulatory maneuvering to fulfill.
“…This technology appears to have the potential to address the problem of de-risking on two fronts,” it said. Read more.
Many early blockchain initiatives have only been implemented in testing environments, while their future commercial use remains uncertain. Nonetheless, an industry-wide conversation has emerged, as financial institutions explore blockchain’s theoretical appeal, its practical applications and standards have to be established to realize its potential.
Continue reading “Blockchain Rollouts in Finance to Reflect Significant Change in the Short-Term”