Eurosystem begins DLT trials for wholesale transactions

Representatives from fintech company CONCRYT, offered a perspective on this development. In essence, they view the Eurosystem's trials as potentially significant for the evolution of blockchain and cryptocurrencies, and they see the involvement of private companies and central banks in live trials as indicative of a commitment to exploring innovative solutions for improving efficiency and security in financial markets. These trials are expected to provide insights into the benefits of DLT integration in wholesale financial transactions, possibly influencing future advancements in blockchain infrastructure.

However, officials emphasised that the Eurosystem's exploratory work does not imply a commitment to implementing steady-state solutions or altering existing infrastructure and asserted that the success of DLT ultimately depends on industry players.

It's been suggested that if the market expresses interest in this direction, the European Central Bank (ECB) would assess the cost-benefit of potential solutions, with the outcome of these trials being of interest to the entire crypto industry.

CONCRYT offers advanced payments technology for global customers. The company aims to offer fast and transparent solutions, with reliability being a core value. They also claim versatility across multiple fintech domains and operate a network of banking and finance connections worldwide, catering to ecommerce clients by offering access to various payment methods, including cards and alternative payment methods.

The Eurosystem has begun a series of trials to assess the application of distributed ledger technology (DLT) for settling wholesale transactions in central bank money.

A word on DLT

According to investopedia.com, distributed Ledger Technology (DLT) incorporates the technological infrastructure and protocols facilitating simultaneous access, validation, and record updating across a networked database. Serving as the foundation for blockchains, DLT enables users to observe changes and their origins, minimises the necessity for data auditing, ensures data reliability, and restricts access solely to authorised parties.

DLTs ensure secure and accurate storage of information through cryptography, allowing data retrieval via ‘keys’ and cryptographic signatures. Once stored, data can transform into an immutable database, governed by network rules embedded within the database programming.