Distributed ledger technology (DLT), including blockchain, is not yet mature enough to host a national interbank payment settlement system, according to the Bank of Canada. The decision followed a Thursday trial that examined the technology's ability to make Canada's wholesale interbank payment system more efficient. A trial phase built on ethereum offered resilience but raised issues over privacy and cost, while an R3-built trial blockchain addressed cost and privacy concerns but made the system less resilient. The bank said it may test the DLT systems with other non-cash asset classes, or integrate them with other systems.
Distributed ledger technology (DLT), including blockchain, is not yet mature enough to host a national interbank payment settlement system, according to the Bank of Canada. The decision followed a year-long trial that examined the technology's ability to make Canada's wholesale interbank payment system more efficient. A trial phase built on ethereum offered resilience but raised issues over privacy and cost, while an R3-built trial blockchain addressed cost and privacy concerns but made the system less resilient. The bank said it may test the DLT systems with other non-cash asset classes, or integrate them with other systems.