European and Japanese Central Banks Launch a Joint Blockchain Study

The European and Japanese central banks announced today a new collaboration for the mutual advancement of their respective economies based on innovation. The Directorate General Market Infrastructure and Payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl Read this Term of the European Central Bank and the Payment and Settlement Systems Department of the Bank of Japan have agreed to launch a joint Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Read this Term research project.

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The Euro-Japanese research project, which aims to study the possible use of distributed ledger technology for market infrastructure, is expected to release its main findings next year.

Japan is heavily involved in the developing and testing of blockchain technology both on the banking-corporate side and on the governmental-institutional side. For example, just a week ago the Tokyo Stock Exchange, Inc. (TSE) announced that TSE, Osaka Exchange, Inc. (OSE) and Japan Securities Clearing Corporation (JSCC) will form a consortium of Japanese financial institutions to continue proof of concept (PoC) testing and discuss the possibility of applying blockchain technology to capital market infrastructure.

European authorities are mainly known in the cryptocurrency community for their hostility to bitcoin but they are more than open to blockchain technology itself. Earlier this year the European Securities and Markets Authority (ESMA) turned to the public asking for feedback on the application of distributed ledger technology with regard to securities markets. The regulator also published a discussion paper listing various possible benefits, shortcomings, challenges and risks that it identified with blockchain technology.