What is a Blockchain?
A Blockchain is actually a way to structure data. Everybody who is connected to the Blockchain, share a single digital ledger that is distributed across the entire network. All transactions on the Blockchain are transparent, immutable and cannot be changed – ever.
The Blockchain is made up of a series of time stamped “records” that are “blocked together in a linear, chronologically correct and permanent database that contains all of the facts associated with every transaction for all time.
The Blockchain is analogous to a full history of banking transaction and each “Block” on the Blockchain can be likened to an individual bank statement.
Why is Bank of Papua New Guinea(BPNG) looking into Blockchain technology?
One of the central pillars of the BPNG Strategy Plan 2016 – 2020 is the promotion of financial inclusion; making financial systems accessible, easy to use and at low cost for every citizen of PNG.
The technology is here and now. BPNG has an obligation to understand how it works and how it can be used for advancing financial inclusion, enabling the appropriate regulatory framework to be control it and address such issues such as data sovereignty, privacy and legislation.
In short, BPNG has an obligation to the people and the government to stay informed of the emerging technologies such as Blockchain to make sure that it does not disturb and or change the mandate law that is in place.
Technologies such as Blockchain may encourage and or enhance our mandated laws which include the issuing of currency to the rest of Papua New Guinea, therefore the Bank will research and try to understand such innovations.
Are we alone?
No. There are over 100 central banks involved in Blockchain-type projects around the world, and is estimated that over 80% of all banks will initiate Blockchain technologies by the end of 2017.
Is it just about financial inclusion?
No. Blockchain technology is being used for intellectual property rights, land registration, voting, medical records, retailing, fisheries protection, publishing and many, many more.
by Loi M. Bakani, CMG, Governor, Bank of PNG
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