Similar centralised solutions also exist for the settlement of foreign exchange and securities transactions. Society could possibly benefit greatly from replacing the existing infrastructure with more decentralised solutions, for instance based on so-called Blockchain technology. Such solutions were first used when the digital currency Bitcoin came onto the market in 2009. Such freestanding digital currencies face a series of challenges, such as significant price volatility, safety issues and pressures on IT resources. Experience shows that the public can easily lose confidence in such currencies and their payment systems, which are not backed by a central bank or a government deposit insurance scheme. Recently, the international debate has shifted focus away from freestanding digital currencies to other uses and the underlying technology. Decentralised systems are peer-to-peer networks where transactions are made directly between participants. They each have an identical copy of the account system or ledger, which is updated continuously. As the ledger is distributed among incumbents, central operators or intermediaries are not needed to undertake the operations. This also provides potential for faster and cheaper settlement. Public confidence and safety rely on encryption. It should not be possible to manipulate the ledger and transactions, and funds cannot be used more than once. It goes without saying that the quality of the security solutions is absolutely essential. The decentralised technology can potentially be used in many areas. Besides the financial sector, proposed uses include registration of property and objects of value and in elections.

It is important for mobile payments to use the same underlying solutions, such as the industry’s own instant payment solution or an enhanced BankAxept system. This will provide cheap and accessible solutions for customers, regardless where they hold an account, and entails economies of scale. In some cases, this will also result in faster payments. Norges Bank will seek to initiate a dialogue with the industry on this matter. I have also noted that there are many operators that are now working to develop common terminal solutions for mobile payments. Time will show what the concrete solution will be. For the system to work efficiently, users must have good information about the services. Optimally, the prices charged to users should reflect costs. 2  BIS central bankers’ speeches  A more decentralised financial infrastructure? Today’s financial infrastructure is largely centralised. Transactions pass through one or several intermediaries before final approval and settlement in a central bank or a central securities depository. At the core of a centralised payment system is the account system in the central bank. Each bank holds an account with the central bank and settlement between banks is effected by moving funds between these accounts. At the level below the central bank, the payment system consists of several layers of accounts. Banks that hold an account with the central bank have their own account system for customers. A payment between customers in different banks therefore passes through many stages, and they are verified at each stage.