According to a blog post from The Israel Times, central banks worldwide are acquiring mature blockchain infrastructure—built through massive private sector investment and trial-and-error—at extremely low or even "free" costs. The article states that from November 2021 to the end of 2022, the total market capitalization of the crypto market fell from about $3 trillion to approximately $800 billion, yet the underlying technical architecture remained intact. Currently, projects such as the (BIS)'s mBridge, the European Central Bank's digital euro prototype, and Israel's digital shekel tests are all built, to varying degrees, on technological成果 developed through years of private sector effort. The article points out that this model—where the private sector bears the trial-and-error costs and central banks adopt the成果 once mature—may weaken future incentives for financial infrastructure innovation.
According to a blog post from The Israel Times, central banks worldwide are acquiring mature blockchain infrastructure—built through massive private sector investment and trial-and-error—at extremely low or even "free" costs. The article states that from November 2021 to the end of 2022, the total market capitalization of the crypto market fell from about $3 trillion to approximately $800 billion, yet the underlying technical architecture remained intact. Currently, projects such as the (BIS)'s mBridge, the European Central Bank's digital euro prototype, and Israel's digital shekel tests are all built, to varying degrees, on technological成果 developed through years of private sector effort. The article points out that this model—where the private sector bears the trial-and-error costs and central banks adopt the成果 once mature—may weaken future incentives for financial infrastructure innovation.