Last year the Bank of International Settlements (BIS) introduced its concept of a Unified Ledger that would support central bank money, tokenized deposits and digital assets on the same network. Using a common tokenization infrastructure eliminates the need for transaction messaging and associated inefficiencies and supports programmability. JP Morgan’s Umar Farooq and Circle’s Dante Disparte shared their views on the Unified Ledger concept during the BIS Innovation Summit.
Talking about a Unified Ledger, Mr Farooq said, “I think you almost need something like that. I mean, it’s actually almost a necessity because if you look at … public blockchain ledgers, they are not fit for purpose for large transactions today.”
He elaborated that if there were a $100 million transaction, there would be no recourse to validators or anyone else if something went wrong. “Who do I sue?” he asked. “You need to get somewhere where people can do trusted transactions between financial institutions with some sort of accountability in the system.”
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