Yves Mersch (Yves Mersch), member of the Board of the European Central Bank (ECB), told Bloomberg that the organization is preparing to release a new settlement system called Target Instant Payment Settlement (TIPS), which «greatly surpasses the blockchain» and will start work in November this year.
TIPS can be considered a result of knee-jerk reaction of regulators and lawmakers, who wanted to create a competitive blockchain product offering payments in real-time. According to regulators, the existence of the TIPS will prevent the spread of the blockchain and cryptocurrency. In another article on Bloomberg, Mersch acknowledged the link between the virtual and the physical world, as he called them, and said that the «collapse» of the first can cause the liquidity in the latter.
Mersch spoke about the characteristics of the new competitor blockchain:
«Transaction TIPS takes 10 seconds worth 0.2 cents. Transaction in a distributed registry is at best 30 euros and takes at least an hour,» he said, adding that the ECB is more focused on results than the technology that, according to him, gives him an advantage.
From the statement of the official shows that he operates out of date, or intentionally distorted data. The value of transactions in bitcoins only «worst case» reached 30 euros and now it costs a few cents and confirmed in a few minutes. In a faster and less loaded the block chain, or using Lightning Network in Bitcoins, you can get the figures exceed the ECB system, or at least comparable, while maintaining the other advantages of the blockchain.
Step the ECB demonstrates the impact that the blockchain is having on government agencies, particularly Central banks, are finally thinking about improving their payment system at the moment is falling short in technology.
Mersch stressed that TIPS is at an early stage of development and that its creation involved the most talented professionals in the high technology and Finance, studied at an Ivy League school and worked in top positions in companies with wall street and kriptonyte.
Meanwhile, it is expected that cryptocurrencies will be one of the main subjects of discussion of the upcoming meeting of Finance Ministers and legislators at the G20 summit, to be held in Buenos Aires in March.