The Central Bank of Brazil has announced that it will be resuming its progress with blockchain technology after halting development following the bank’s statement claiming that the technology was too “immature.”
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“We are a central bank, and we enjoy a lot of stability. But you have to think change. You have to think in a different business model. So, for us, that’s the most difficult part of this kind of work when we’re talking about innovation,” said the central bank’s deputy head of IT, Aristides Andrade Cavalcante Neto.
Banco Central do Brasil is advancing proofs-of-concept (PoCs) on four distinct platforms including ethereum, JPMorgan’s Quorum, Hyperledger Fabric, and R3’s Corda distributed ledger platform.
The PoCs generally concentrate on utilizing blockchain technology to back-up the central bank’s existing real-time gross settlement system (RTGS), dubbed the Brazilian Payment System.
RTGS allows banks to reconcile large-value withdraws instantaneously as they occur.
With the comparative infrequency of these withdraws, numerous central banks believe they could be a potential use case for blockchain.