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. In its decision, released on Tuesday, the central bank's board said it was concerned about "potential risks and vulnerabilities associated with DLT implementation. 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.