Recently, European central bank executives — Thomas Moser from Swiss National Bank and Martin Diehl from Deutsche Bundesbank — stated that central bank digital currencies don’t need a blockchain.
They expressed their opinions by saying that blockchains — especially public, or permissionless — make no sense for central bank digital currencies. The reason is that central banks are central parties; therefore, a blockchain, being a decentralized ledger, is not applicable. It is a pity, but the clerks seem to be unknowingly (or intentionally, who knows?) wrong in their conclusions to why and how blockchain technology can be used, especially with CBDCs.
System architecture in two layers [Infographics]
Oleksii Konashevych is the author of Cross-Blockchain Protocol for Government Databases: The Technology for Public Registries and Smart Laws. He researched the use of blockchain technology for e-governance and e-democracy, and works on the tokenization of real estate titles, digital IDs, public registries and e-voting at the RMIT University. Oleksii co-authored a law on e-petitions in Ukraine, collaborating with the country’s presidential administration and serving as the manager of the nongovernmental e-Democracy Group from 2014 to 2016. In 2019, Oleksii participated in drafting a bill on Anti-Money Laundering and taxation for crypto assets in Ukraine.
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