BFC Bulletins Monthly News Digest
MINDSMITH, a technology think tank, recently carried out a semantic analysis of publications from 191 central banks around the world. Interestingly, they found that 74% of the world’s central banks are taking an active interest in blockchain technology. According to the MINDSMITH research, the 7 most common blockchain uses central banks are exploring are:
- Central bank retail digital currencies – a digital currency issued by a central bank that is available for use by the public and serves as a supplement or replacement for physical funds and an alternative to traditional bank deposits
- Wholesale digital currencies – a digital currency issued by a central bank available only to commercial banks and clearing houses
- Interbank securities settlement – a way for enabling rapid interbank clearing and securities settlements
- Payment system stability – the use of blockchain as the main or backup internal interbank payment and settlement system in order to ensure data safety and the continuity of operations
- Issuance and lifecycle management of bonds – the application of blockchain in auction and bond issuance or other bond life cycle processes
- KYC and AML procedures – the application of blockchain in KYC/AML procedures to track and share relevant payment and customer identification information
- Data exchange platforms – the use of blockchain to create alternative systems for the exchange of information and data between government agencies and regulators
