A few years back we published an article on DLT’s . All banks were required to update systems to accommodate DLT’s. At the time I expressed that it was probably the most important feature relevant for the functional deployment of the GCR. It went relatively unnoticed at the time.
Distributed Ledger Technology (DLT) refers to the technological infrastructure and protocols that allows the simultaneous access, validation, and record updating in an immutable manner (meaning unchanging over time or unable to be changed) across a network that’s spread across multiple entities or locations.
On March 9, 2022 Executive Order 14067 was signed. Officially titled “Ensuring Responsible Development of Digital Assets” Other than the obvious functional meaning in the title, it also asks for more work to be done into developing a U.S. “Central Bank Digital Currency” or CBDC.
In recent months a white paper was published titled “ The Regulated Liability Network: Digital Sovereign Currency”. The paper presents one potential avenue for upgrading sovereign currency systems with shared ledger technology. The fundamentals of this white paper have recently been deployed and several central banks are actually experimenting and using DLT. The full adoption of distributed ledger technology by the regulated financial system has yet to be a large-scale transformation of market infrastructures but it has started. All things large start small.
There isn’t enough physical currency in print or can be printed to facilitate a global currency exchange. It has to be a digital format. For a digital format to be in place various elements have to, one, be created and two, be deployed. It has to be immutable, secure and incorruptible. DLT (basically blockchain ), coupled with assets backing the values of currency, quantum computing and quantum encryption is the only possible means for what has been identified as the GCR/RV to engage.
I can’t express it enough when I say quit looking at the end product of receiving funds and pay attention to the mechanisms surrounding the event that need to be in place and functional for it to happen. The adoption of this White Paper is one of those functions.
The singular thing that affects if a currency is effective is if the public using the currency has confidence in it. The pros and cons of a digital currency is highly debatable. But if in its creation it can remain immutable the pros vastly out-way the cons and is good news for the beginning of the GCR.