EU Banking Regulator Reports on Institutional Opportunities and Hazards of Implementing DLT

In Regards to “electronic individuality ” and customer due diligence (CDD), the EBA States that DLT will ease the storage and continuous update of corporate customer data in One place:
From the report published July 3, the banking regulator analyzes the effect of fintech and DLT on monetary institutions, examining two DLT usage cases in international trade and thus called “electronic identity. ” The EBA defines “electronic identity” since the “data used to represent an entity in an informational strategy. ”
“DLT empowers a common and almost real-time view of a transaction transaction kept in a shared ledger for all participants involved, creating a level playing field for all parties and removing their reliance on paper instruments exchanged among them. A shared view might rationalise the manual work and reconciliation processes, together with consequent savings in time, money and resources. ”
“This means that additional information required by the institution to fulfill the improved CDD requirements where the customer is deemed high risk, could be stored on the stage by other participating institution. ”

The EBA starts with a comprehensive explanation of the ways DLT could be applied in the business of global exchange transactions and streamline the practice of their settlement in particular. The report states DLT and intelligent contracts provide a range of opportunities, the most promising of which will be the possible efficiency gains, conservative management of prices, and reduced risk of replicate funding and manipulation of files. This explains: