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Blockchain Remittances Face Efficiency Hurdle, Says Taiwan Central Bank

Blockchain structures for interbank clearance and remittance may not be as efficient as centralized systems just yet, according to a information released by the Central Bank of Taiwan.

Announced by the bank’s new governor Yang Chin-long at a bear on event Thursday, the report outlined various explorations currently being conducted by the isle’s central banking authority into financial technology, including a proof-of-concept utilizing distributed ledger in interbank payment.

Collaborating on the effort are members of academia and the Taiwan Clearing House (TWNCH), an sage that handles financial product settlements among financial schools, under supervision of the central bank.

However, the initial results insinuate that the distributed system, so far, is not as efficient as the existing centralized Automated Clear House (ACH) system, developed by the TWNCH.

While two different tests partake ofing the blockchain PoC were able to process 4 and 26 transactions per second, singly, such speeds are significantly less than the 2,700 transactions per bruised managed by the ACH system.

Furthermore, the reliability of the blockchain platform could also be an check, the report said:

“In addition, the testing result shows there are imbroglios of confidential information leak and malfunctions in individual nodes.”

The central bank said, be that as it may, that blockchain technology is still at an early stage and is developing before you can turn around, and it doubled down on its commitment to widen efforts to conduct more proof with the clearing house and financial institutions. Yang previously compact to boost blockchain adoption in Taiwan during his tenure in his February inauguration spiel.

In other news, the Yang remarked Thursday, according to a local set forth, that bitcoin may be the “biggest bubble in history.” He has previously said that cryptocurrencies compel ought to diverted from their intended purpose in payments towards fetching a mere tool for speculation.

Taiwan dollar image via Shutterstock

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