Blockchain systems for interbank clearance and remittance may not be as efficient as centralized systems just yet, according to a report released by the Central Bank of Taiwan.
Announced by the bank’s new governor Yang Chin-long at a press event Thursday, the report outlined various explorations currently being conducted by the island’s central banking authority into financial technology, including a proof-of-concept utilizing distributed ledger in interbank remittance.
Collaborating on the effort are members of academia and the Taiwan Clearing House(TWNCH), an authority that handles financial product settlements among financial institutions, under supervision of the central bank.
However, the initial results suggest that the distributed system, so far, is not as efficient as the existing centralized Automated Clearing House (ACH) system, developed by the TWNCH.
While two different tests using the blockchain PoC were able to process 4 and 26 transactions per second, respectively, such speeds are significantly less than the 2,700 transactions per second managed by the ACH system…
Read Full: Blockchain Remittances Face Efficiency Hurdle, Says Taiwan Central Bank