In this report, we analyze a new FRB working paper as well as remarks from officials at the BoJ and the ECB highlighting potential concerns and challenges to the wide-spread adoption of distributed ledger technologies (DLT). Although all three see DLT as still in its infancy – the FRB has in its report identified most DLT efforts as still in the “proof of concept” stage – they stress that questions regarding supervisory and regulatory oversight of DTL must be answered before widespread adoption. Many of these concerns were anticipated in September of 2015 in a Karen Petrou memo assessing the U.S. prospects for blockchain. Concerns raised by all three central banks include regulatory access to data, the impact of market infrastructure changes on financial stability, and DLT resiliency to cyberattacks.
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