U.S. Federal Reserve Discusses DLT Integration
The US Federal Reserve report suggests that it intends to consider Distributed Ledger Technology (DLT) and cryptographic currencies for financial transactions.
The Central Bank of Europe and Japan are evaluating the use of distributed accounting technology in the central banking system, there is to be said however that although they think that DLT has great potential it is thought that it could not replace the system of large real-time transactions currently in use.
The US Federal Reserve is also dealing with the DLT and has a slightly different position, In a report published on Wednesday entitled “Strategies to Improve the United States”, The Fed is much more open to the implementation of the DLT than in the Payment System.
This is not the first time that the Federal Reserve has discussed DLT or cryptocurrency, in December 2016 the central bank published a paper explaining the potential use of block chain systems for both banks and consumers.
The central bank is looking for a secure, rapid and efficient system that allows the different banks and financial institutions to work more easily and effectively with each other and with the government.
The Federal Reserve considers DLT and cryptocurange as new payment methods that allow secure and efficient payment transactions. The inclusion of these technologies should therefore be seen as a complement to the Fed’s existing services.
However, before choosing the DLT for use, the Fed reserves the right to evaluate the costs of the new technology and verify its effectiveness.
This work includes the analysis of safety, cost, efficiency and feasibility of the various options discussed in the report, there is no precise timetable for the next stage of work.