The European Central Bank (ECB) says it is testing the blockchain technology to improve banksecurity payment systems and for other purposes. Experts explain why it has made an obvious U-turn.
This pronouncement is included in the new consultative report of the ECB released this week and called Eurosystem's vision for the future of Europe’s financial market infrastructure about how to improve the bank security payment systems. So it is for this purpose that the ECB is testing blockchain applications.
“It's not surprising that the ECB is taking a closer look at blockchain technology, given the rapid advancements we have seen in this space over the past 12 months. While the ECB originally viewed digital currencies as "inherently unstable", policymakers are reexamining how a digital currency controlled by a central bank might provide faster, lower cost payments with more traceability. In today's environment of low or negative interest rates, digital currencies may also provide new monetary policy tools that were previously unavailable”, said Cambridge Blockchain’s head Matthew Commons.
