According to representatives of the Central Bank of the country, the technology of the blockchain is not of interest for the payment system in the Netherlands, at least for now.
On Thursday, De Nederlandsche Bank (DNB) has published the entry
in his blog, which States that technology is a distributed registry (DLT) is not suitable for the existing infrastructure of the financial payments due to its lack of scalability for large volumes of transactions and other problems.
DNB has declared on results of a series of experiments that are conducted a project called Dukaton. In studies over the past three years the project tested four prototype DLT. Dukaton started testing to understand what benefits can bring the technology into the existing payment system of the country. Based on my first prototype the source code of the Bitcoin blockchain, in the later stages the team used different algorithms for consensus and verification mechanisms.
After tests, the Central Bank acknowledged that the blockchain can improve the resilience of financial infrastructure to external attacks. However, this advantage works to the detriment of «scalability, throughput, and efficiency,» the report says. In the recording, the Central Bank said:
«Modern payment systems are very efficient, they can handle large volumes and to provide legal certainty of payments. The tested solution on the blockchain show a lack of efficiency in cost and energy consumption and the inability to handle large number of transactions.»
However, DNB does not exclude the possibility that the development of the industry of the blockchain appears the best algorithm that will satisfy all technical requirements which are imposed to him by the Dutch financial system. In this regard, the Central Bank said it will continue to invest in further development, application and experiments with the technology of the blockchain.
Central Bank of the Netherlands is not the only major financial regulator, who said about the imperfections of the blockchain and its unsuitability for the financial system of their country. Last fall, after a series of studies of the Central Bank of Germany published
a similar report. Then the representatives of the Bank stated that «consumers don’t need the blockchain», and also noted that «the specialists of the Bundesbank does not see great prospects in regard to the extensive use of the DLT for implementation of individual and retail payments in the Euro area».
It seems that the European Central Bank decided to maintain the same position. In February it became known that the organization prepares
production of the new settlement system called Target Instant Payment Settlement (TIPS), which «greatly surpasses the blockchain» and will start work in November this year.
However, not all of the Central Bank are ready to create your own decision – some banks are actively studying the blockchain and begin to implement the technology into their work. Recently it became known that the Central Bank of South Africa tests
interbank transactions on the blockchain Quorum.
Earlier this week there was also the information that the people’s Bank of China has completed
work on the system based on blockchain technology, which digitizes the checks issued by local companies. In addition, in December last year it became known that the Central banks of the United Arab Emirates and Saudi Arabia launch
a pilot project to test a new cryptocurrency for cross-border payments.