A new report by the ECB details the use cases of distributed ledger technology across various industries. One topic of particular interest is the impact this will have on the governmental and e-identity sector as the blockchain may facilitate necessary changes to KYC and AML requirements.
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ECB on Governance on the Blockchain
Most cryptocurrency enthusiasts will know of the various projects taking place which focus on e-identity services related to blockchain technology. BitNATION is a project that comes to mind immediately, but there is also the E-Estonia initiative, which provides governance services to anyone who signs up for the program.
A recent report by the European Central Bank delves a little bit deeper into the subject of distributed ledgers and governance, as they see an exciting future ahead. Existing regulatory policies, such as Know-Your-Customer and Anti-money Laundering, have remained unchanged for several decades and do not scale with the current landscape of financial services.
The report also makes mention of how distributed ledger technology – which the ECB dubs as DLT – can be useful in this regard. Establishing the