One of the panels at the OMFIF Digital Money Symposium today explored whether blockchain can revolutionize payments. Perhaps the most important question is when blockchain is useful.
Mu Changchun, who heads China’s digital currency initiative, answered that question in a previous session. He noted that Chinese consumers are spoilt for choice with everyday payments. Using blockchain for its retail central bank digital currency (CBDC) was a nonstarter because of the demand for speed in settlement and the scale of consumer payments.
However, China is also involved in the MBridge blockchain solution for cross border payments with three other central banks. Blockchain was adopted because it gives control to each central bank reducing the need for trust, and the scale of transactions is far smaller.
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