The Bank of England’s exploration block chain: digital currency issuance is still too early
Today, the Internet released a copy of the speech was canceled, the Bank of England (BankofEngland) governor MarkCarney after the in-depth research of distributed ledger proof of concept, “the central bank said digital currency”.
The comment on the occasion, when the global banks began testing publicly distributed ledger. This technique is equipped for running the encryption currency to the center of the public ledger.
It can be extended to Carney, although the bitcoin and other encryption currency financial system in an attempt to create a new, but distributed ledger is to shorten the settling time, improve the traditional financial environment safety.
In Carney’s speech, he stressed the immediate change and application of these new tools may not be in the short term, but some banks to issue digital currency is almost a compelling choice.
“The central bank is concerned about the distributed ledger and enhance their adaptability to the market potential, distributed ledger system backup means. Even if a fault occurs, the rest can be run as usual. Eliminate single points of failure risk inherent in the center of the system.”
On this basis, he said, the British central bank intends to continue to explore the use of distributed ledger in its own internal infrastructure, including the RTGS system ((real-timegrosssettlementsystem).
“If distributed ledger technology can improve the efficiency of the private sector, payment and securities settlement, so why not apply it to the core of the payment system?”
It is worth noting that this is not the first time that the bank can be real-time gross settlement system and distributed ledger integration technology.
At present, the Bank of England’s use of gross settlement system in 2014, has experienced 9-10 consecutive hours of failure.
The accident brought considerable inconvenience caused by day 51% of the housing transaction was delayed for several hours.
The actual experience
In a copy of the speech, Carney said the central bank will set up their own internet financial incubator, to explore new ideas of distributed ledger to a great extent.
He said that the organization will handle the new method of non bank payment service providers to explore, this may open new doors for block chain enterprises.
Moreover, in his statement about the relationship between distributed ledger technology and the Central Bank of the existing system, very worthy of attention.
As for the central bank issued digital currency, Carney said he thought it would be “fundamentally or sudden reshaping the banking”, but at the same time, in the elimination of conflicts may increase the liquidity risk”.
To some extent, Carney that the system of investors have too much freedom, this is a global central bank to solve the problem of common internal cognition.
For example, if the stock market collapse, as investors quickly convert stocks into cash, will cause a run on the bank, but the bank may not hold enough cash.
Finally, Carney made its own summary, said in his opinion “the Bank of England digital currency is still a long way to go”.
This speech is to release vice mayor of the city of London Party (theLordMayor ‘sBanquet) prepared by the participants including bankers and businessmen, but Carney does not make speeches, instead of mourning the murder on Thursday Mr JoCox.