Brazilian central bank to consider the development of block chain settlement prototype

nnnThe Brazilian central bank’s latest report on the block chain examines a variety of possible use cases for the technology, revealing its plans to develop a chain block settlement prototype, hoping to use it as a backup system, replacing the original system crash It plays a role. The report echoes the research conducted by some central banks in other countries, reflecting the fact that settlement will be the main foothold in the use of block chains by central banks.n
nnTranslated by: Inan
nThe Brazilian central bank recently released a survey report detailing the possible use cases for block chains and distributed books and outlines how the technology can be tested using a variety of available platforms.n
nThe survey was led by a survey team from the Banco Central do Brasil, which was released on August 28th. The report examines the various use cases of distributed books, including authentication, local currency and settlement, but only the last item is recommended to create a prototype.n
nBut its goal is not to design a primary settlement platform for the central bank, but to create a “minimum” backup system to enable it to “complete the main settlement system collapse” when the transfer of funds.n
nThe report says:n
nn”In the event of a catastrophic crash, RTGS members will not be able to send (or receive) funds to each other, resulting in a complete cessation of financial business … In this case, the Transaction Settlement Alternative System (SALT) may be a solution that can To replace Brazil ‘s main RTGS as a core function when the system crashes completely.n
nnThe report authors point out that the system is designed to include a licensed chain network. In this network, the financial institutions and the central bank itself is the verification node.n
nThe conclusion of the study is that, while there may be privacy and security issues, distributed book technology “may create a unique sharing perspective that enables cross – organization provisioning and replication of various information.n
nThe study is consistent with the research conducted by the central banks of other countries.n
nFor example, the Bank of England and the Monetary Authority of Singapore have studied how to apply the block chain to settlement, but the biggest progress in this area is the Bank of England, which says its latest settlement system will be “compatible with distributed books.”n

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