Janet Yellen "Gets" How Blockchain Can Serve Central Banks

What a difference a year makes... in early 2015 Chain was still offering free Bitcoin API and now its CEO is advising central banks on how to adopt the technology at its core to issue their fiat currencies.

Adam Ludwin, the co-founder and CEO of Chain, gave a lecture about Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned). In this sense, blockchain is immune to the manipulation of data, making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamp Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned). In this sense, blockchain is immune to the manipulation of data, making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamp Read this Term last week in front of officials from ninety central bankers, including the Fed Chair Janet Yellen, as well as the IMF and World Bank. His talk about how the established financial system can adapt to the innovative technology was the keynote address at the 16th Annual International Conference on Policy Challenges for the Financial Sector held at Federal Reserve in Washington DC.

According to Bloomberg, Ludwin told the influential audience: “You should be running toward this opportunity. The real golden opportunity, the thing you should be working toward, is central bank digital currency. The development of the Internet and microprocesssors had crucial government support. That’s where blockchain is today. At the infrastructure stage it’s almost always the government that plays a leading role as the creator or backer of the technology.”

Ludwin explained to the central bankers, among other things, about the intersections of Blockchain with money market funds, leveraged credit products and shadow banking. He told them they need to decide if they want to control these networks themselves directly, issue assets and create services, or just remain in an observatory status.

Asked if the Fed Chair seemed to understand all he was saying, Ludwin answered "She got it.”

Back in December Chain issued shares on the Nasdaq blockchain platform that it helped the Stock Exchange Stock Exchange A stock exchange, also known as a securities exchange or bourse represents is a facility where stockbrokers and traders can buy and sell securities.This includes shares of stock, bonds, exchange-traded funds (ETFs), or other financial instruments. By extension, stock exchanges can also provide facilities for the issue and redemption of such securities and instruments and capital events including the payment of income and dividendsStock exchanges have developed into a permanent fixture in the fin A stock exchange, also known as a securities exchange or bourse represents is a facility where stockbrokers and traders can buy and sell securities.This includes shares of stock, bonds, exchange-traded funds (ETFs), or other financial instruments. By extension, stock exchanges can also provide facilities for the issue and redemption of such securities and instruments and capital events including the payment of income and dividendsStock exchanges have developed into a permanent fixture in the fin Read this Term create.