As a researcher with a background in blockchain technology and experience in evaluating digital asset platforms for central banks and financial institutions, I am excited about Nabatech’s decision to build its platform on Polkadot’s Substrate framework.
Nabatech, a digital asset expert based in Switzerland, has chosen Polkadot‘s Substrate as the foundation for creating their platform catering to central banks and financial institutions.
After carefully evaluating seven different platform options, we chose to implement our project using Polkadot’s Substrate framework.
Nabatech Taps Substrate
Nabatach represents a collaboration between SICPA, a globally recognized cash management solutions provider for central banks and sovereign entities, and INX, a US-regulated asset tokenization platform overseen by the Securities and Exchange Commission (SEC) and Financial Industry Regulatory Authority (FINRA. Their objective is to empower central banks in issuing digital versions of currencies such as CBDCs, bonds, and stablecoins.
As a blockchain analyst at Nabatech, I was tasked with evaluating potential options for our regulated digital asset platform. We considered several contenders, including Ethereum, Hyperledger Fabric, Cosmos, and Polygon. In the process of assessment, we focused on various criteria such as Sybil resistance, coding language, runtime, security, governance, interoperability, and business process integration. Among all the alternatives, Substrate stood out as the preferred choice for Nabatech based on these evaluation parameters. According to our CTO Paz Diamant, this selection was a result of a thorough analysis and comparison of each blockchain’s strengths and weaknesses in meeting our specific requirements.
As a meticulous analyst after conducting in-depth technical examinations of various blockchains with esteemed economy and technology professionals, I was captivated by Substrate’s adaptable and modular architecture. Its flexible framework allows for swift customization to address any business or technological need without sacrificing security or scalability.
As a seasoned analyst, I would put it this way: I have observed the system being employed as a testing ground for central banks to establish essential infrastructure. Moreover, it offers significant benefits such as expanding currency circulation, managing currency lifecycles, facilitating transfers and settlements, and optimizing sovereign compliance.
The Benefits Of Substrate
Central banks and leading financial institutions demand robust security and stability. Substrate networks offer this through advanced cryptography and various protective features, shielding against typical threats. Notable aspects of Substrate include facilitating both retail and wholesale transactions involving Central Bank Digital Currencies (CBDCs). Furthermore, Substrate enhances flexibility by providing a modular framework, enabling central banks to opt for the most suitable foundation based on their monetary policies and financial strategies.
Central banks can choose to implement retail or wholesale CBDCs (Central Bank Digital Currencies) using Substrate’s adaptable framework, according to their specific requirements.
Central Banks Pushing For CBDCs
Multiple central banks globally are considering the creation of central bank digital currencies (CBDCs). Notably, Rwanda has announced its intention to launch its own CBDC within the next two years. The primary objectives of Rwanda’s CBDC include enhancing the efficiency of its financial system and providing a secure and convenient alternative to traditional cash for its citizens. Additionally, the country aims to extend financial services to previously underserved populations through the implementation of CBDCs.
Brad Garlinghouse, the CEO of Ripple, has disclosed almost a dozen collaborations with various governments aiming to advance their Central Bank Digital Currencies (CBDCs). Through these alliances, these governments will leverage Ripple’s blockchain technology to modernize their financial infrastructure.
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2024-06-19 16:01