People's Bank of China Digital Currency Research Institute: Currently it is not recommended to transform traditional payment systems based on blockchain

On February 21st, the Blockchain Research Group of the Digital Currency Research Institute of the People's Bank of China published an article "Development and Management of Blockchain Technology", which pointed out that the main deficiencies of blockchain technology, such as:

In terms of operation and maintenance, business continuity cannot be underestimated. Blockchain systems that are collectively maintained by multiple parties will also pose huge challenges. For example, members joining / withdrawing, system upgrades, business rule updates, etc., currently lack mature standards, systems and operating specifications, and multi-party offline communication is required to deal with collaborative governance issues on the chain.

In terms of compliance, blockchain cannot guarantee the finality of settlement. Due to problems such as 51% attacks, blockchain-based payment systems cannot guarantee settlement finality. When building a payment system based on the blockchain, you need to consider whether to meet the requirements of the Principles of Financial Market Infrastructure (PFMI) to avoid legal risks.

In terms of functions, the decentralized nature of the blockchain conflicts with the centralized management requirements of the central bank. The payment service provided by the central bank cannot leave the centralized account arrangement and needs to be built on a centralized system, which conflicts with the decentralized nature of the blockchain. Therefore, it is currently not recommended to transform traditional payment systems based on blockchain.