Blockchain Central Bank to Be Created in 2018

Blockchain Central Bank 2018

A blockchain central bank will be created in 2018 , according to Anthony Lewis,  the research director at global banking consortium and distributed ledger software startup R3.

He predicted that a central bank digital currency (CBDC) will  be instated in 2018,on Wednesday, at the Deconomy event in Seoul, South Korea, reported Coindesk.

“For wholesale use (of CBDC), I think we are looking at this year. We have had conversations with central banks who have mandates to fix certain payment problems, and one solution they look to is a blockchain type of platform,” Lewis mentioned.

The research director of R3 explained that it doesn’t necessarily means that consumers will have a new payment option like Bitcoin. However, he expressed that such a system would only be used in specific cases.

Lewis said,

“Don’t make your secondary (decentralized) system look like your primary (centralized) system. Otherwise If a primary system goes down in an attack, then all the attackers need to do is just to play the same trick. Then it’s not resilience, it’s just another IP address to attack.”

The global CBDC lead at IBM and a former CBDC researcher at Singapore’s central bank, Stanley Yong, thinks the best way to implement a blockchain-based system would be to apply it to commercial banking.

“If it issues cryptocurrency to millions and billions of citizens, it will have to hold all these individual accounts, which inherently increases the market and credit risks,” Yong mentioned.

On March 29th, the European Central Bank (ECB) and the Bank of Japan (BoJ) have completed a new research showing the potential of blockchain to transform securities settlements.

In the beginning of March, Bitmain announced it was planning on investing in a blockchain central bank.

 

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