European Central Bank and Bank of Japan: Blockchain Too Immature for Adoption
The 2016 Stella intiative by the ECB and the BOJ to adopt Blockchain technology for large banking transactions has determined that the technology is not ready to take over major institutional banking challenges.
Project Stella has released its findings after a year long study of distributed ledgers. The 2016 attempt by the European Central Bank (ECB) and the Bank of Japan (BOJ) to adopt Blockchain technology for large banking transactions has determined that the technology is not ready to take over major institutional banking challenges.
While the reports were favorable regarding the performance of Blockchain technology for banking needs, they nevertheless concluded that the technology is not at a point of maturity to function as a solution for banking practices at this time. The report concludes:
“In conclusion, while the test series produced promising results, it should be taken into account that no direct conclusions can be drawn from the test set-up with respect to a potential usage in production. Given the relative immaturity of the technology, DLT is not a solution for large-scale applications like BOJ-NET and TARGET2 at this stage of development.”
While there has been a number of banking institutions that have adopted Blockchain technology for their transaction and document needs, this report by large scale banks indicates that the technology may not be robust enough at this time to be a viable option.