We are living in times when the world is still discovering the benefits of blockchain technology. Times when everyone is becoming aware of the countless applications of blockchain technology and the speed, security, and simplicity of the transactions they deliver.
Many banks, investors, and other big players are part of this new blockchain revolution. One of them is the central bank of Luxembourg, with Yves Mersch as the executive board member of the European Central Bank (ECB) as part of it.
Mersch’s latest statement to Bloomberg, however, is pitching a completely new settlement system that is known as Target Instant Payment Settlement (TIPS) which will potentially ‘leave blockchain in the dust’. As he said, the system is a product of a reaction among policymakers and regulators in order to create something that allows real-time payment transactions in order to disrupt the disruptor and make the distributed ledger technology and digital coins more efficient.
In another Bloomberg article, Mersch has acknowledged the connection between the virtual and physical worlds – with the collapse of the former triggering liquidity event in the latter. In other words, TIPS is a technology that is even fresher and newer from the blockchain – and its direct rival.
As Mersch said, “TIPS is 10 seconds, 0.2 cents. DLT transactions are at best 30 euros and take at least one hour,” adding that the technology is more result-driven which gives it a unique edge.
However, we all know that there are many other alternatives to Bitcoin such as Ripple’s XRP payment system and the bitcoin-accelerating Lighting Network. However, the mere fact that a new blockchain iteration is unveiled by a central bank board member is certainly something that raises some eyebrows and clears the ground for new innovations in this space.
DC Forecasts is a leader in many crypto news categories, striving for the highest journalistic standards and abiding by a strict set of editorial policies. If you are interested to offer your expertise or contribute to our news website, feel free to contact us at [email protected]