Central Banks are Trialling Blockchain

Central banks and other public sector institutions are actively involved in distributed ledger technology (DLT) experiments and trials, says first Global Blockchain Benchmarking Study by the Cambridge Centre for Alternative Finance. 57% of surveyed central banks are experimenting with the Ethereum codebase. Report highlights rapid growth of DLT, along with regulatory and other issues needing attention to unlock full potential.

First Published by e-Forex News: October, 2017

Interest in enterprise Blockchains and distributed ledger technology (DLT) has grown significantly in the past few years, with at least 115 DLT start-ups now employing more than 2,000 people and many large corporations and public sector institutions focusing on DLT, says the first Global Blockchain Benchmarking Study by the Cambridge Centre for Alternative Finance (CCAF), supported by VISA and professional services firm EY. At least 25 cryptocurrency-focused companies have pivoted to DLT activities, says the study, which gathered data from more than 200 enterprise DLT start-ups, established companies, central banks and other public sector institutions.

Highlights of the study include:

  • The number of enterprise DLT start-ups has trebled since 2014, from 37 to at least 115.
  • About 47 per cent of all enterprise DLT start-ups are based in North America (primarily in the US), followed by Europe (28 per cent) and Asia-Pacific (19 per cent).
  • Banking and finance account for 30 per cent of publicly reported DLT use cases, followed by government at 13 per cent, insurance at 12 per cent and healthcare at 8 per cent.
  • “Immature” technology is still considered one of the key challenges to broader DLT adoption.
  • There is significant public sector DLT activity at the local, regional, national and multilateral institution level.
  • 58% of public sector institutions (excluding central banks) have planned advanced DLT trials this year compared to only one quarter of central banks; 42% of central banks cannot yet predict when trials might begin.
  • Only limited network and application deployment has been observed to date: the vast majority of users are experimenting with small-scale, isolated networks.