The ECB should be using distributed ledger technology according to the First Deputy Governor of Banque de France

First Deputy Governor of Banque de France Denis Beau has said the ECB should be using distributed ledger technology (DLT) for settlements within the Eurozone.

In a speech made in Paris at  the second annual  Capital Markets Technology and Innovation Conference on Thursday last week he said normal payments are:  “costly for end users [and]slow and unsafe across the world, in particular in emerging countries.”.

The French central bank has in fact already been building and testing a pilot blockchain system, according to Mr Beau. This is the so-called “MADRE” payments register, an experimental system that aims to store all Credit Identifiers of the SEPA system (Single European Payments Area) using blockchain. While it is technically operational, MADRE does not seem to be used yet for any actual money transfers, and it is still only a prototype.

Mainly the tone of the talk was one of acceptance of new technologies. I think Mr Beau wants the ECB to be more progressive and he also added the innovation that creates “imbalances” and is  “uncertain” could have long-term benefits to society.