Impact of Distributed Ledger Technology on Energy Usage in Retail Central Bank Digital Currencies
Wednesday, 10 July 2024, 13:59
Riksbank Study on Energy-Efficient DLT Retail CBDC
Sweden's Riksbank has recently conducted a study to explore the energy efficiency implications of implementing a distributed ledger technology (DLT)-based retail central bank digital currency (CBDC). The findings shed light on the importance of sustainable designs and server location considerations in the development of digital payment systems.
Key Points:
- DLT Energy Comparison: The study reveals potential energy-usage parallels between DLT retail CBDCs and conventional card payments.
- Design Impact: The efficiency of a DLT-based system heavily relies on the architectural choices and technological configurations.
- Server Location Factors: Optimal server positioning plays a crucial role in minimizing energy consumption and enhancing sustainability.
In conclusion, the Riksbank's research underscores the significance of eco-friendly practices in the evolution of digital currency frameworks.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.