ECB and BoJ point to major problem in DLT-based payments


The European Central Bank and the Bank of Japan have concluded that a confidential distributed ledger payments network cannot be effectively audited without increasing the network’s operational risk.

“The existence of trustworthy central sources of information in auditing processes would be beneficial for effective auditing,” the central banks said in a research paper.  

A central source would ensure both confidentiality and auditability, but it could also establish a single point of failure

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