According to the report published by CCN, the central banks of Canada and Singapore have successfully tested cross-border cryptocurrency payment by sending each other cryptocurrencies that are backed by central banks.
The central bank of Singapore announced in an official press release that central bank cryptocurrencies have a great potential to increase the efficiency of international transactions and at the same time reduce their risks.
According to reports, these cross-border transactions between these two international monetary institutions relied on the Distributed Ledger Technology (DLT). This technology is used mostly in private Blockchain networks that are largely centralized.
One of the advantages of the Distributed Ledger Technology and private Blockchain in general, compared to public and decentralized Blockchain networks, is scalability and the capacity for large transactions.
However, since private Blockchain networks that are based on the DLT technology are not decentralized, some crypto analysts believe that they cannot be considered as Blockchain networks since one of the main features of a Blockchain network is the fact that it is decentralized.
Central banks of Canada and Singapore are not the only major financial institutions that are interested in cryptocurrencies. JP Morgan had previously released its own cryptocurrency. Could all this mean that banks are starting to accept the Blockchain technology at last?