Taiwan’s Central Bank: Bitcoin Not Efficient Enough for Interbank Transfers
March 23, 2018
Using blockchain for interbank clearing and transfers today is not that effective as the current central system, as the Central Bank of Taiwan said in the latest report.
The document also tells about researches of financial technologies held by the Bank including distributed registry one for interbank transfers. Taiwan Clearing House (TWNCH) is also involved into it as it settles accounts among the country’s financial institutions.
According to the preliminary results, using distributed registry systems is less efficient no than centralized Automated Clearing House (ACH) designed by TWNCH. Blockchain processed 4 and 26 transactions per second during two tests while the centralized system deals with 2,700 transactions per second. What is more, the agency has questioned reliability of the technology itself:
“In addition, the testing result shows there are problems of confidential information leak and malfunctions in individual nodes”.
The Central Bank, however, does not give up on blockchain and understand that it is at the earliest stage of its development. They plan conducting more researches and tests of new technologies with clearing houses and financial institutions involved. Earlier the Taiwan Central Bank Governor Yang Chin-long noted, future belongs to Blockchain.