Nabatech Chooses Polkadot’s Substrate for Central Bank Digital Asset Platform
Nabatech, a Swiss digital asset specialist, has selected Polkadot’s Substrate blockchain framework to develop its digital asset platform, aimed at serving central banks and financial institutions.
In-Depth Evaluation Process
Nabatech, a joint venture between SICPA—a leading cash cycle expert for central banks—and INX, a US-regulated asset tokenization platform, conducted an extensive analysis of seven potential blockchain platforms before deciding on Substrate. The evaluated platforms included Ethereum, Hyperledger Fabric, Cosmos, and Polygon. The selection criteria encompassed Sybil resistance, coding language, runtime, security, governance, interoperability, and business process integration.
Why Substrate?
According to Nabatech CTO Paz Diamant, Substrate’s flexible and modular design stood out during the evaluation. “Substrate’s framework can be quickly adjusted to suit any business or technical requirement, flexibly, without compromising on security or scalability,” stated Diamant. This adaptability makes Substrate ideal for supporting various digital assets like central bank digital currencies (CBDCs), digital bonds, and stablecoins.
Strategic Use and Benefits
Nabatech’s platform, built on Substrate, is already functioning as a sandbox environment for central banks, providing critical infrastructure solutions. Key benefits include:
– Security and Stability: Essential for central banks and financial institutions.
– Modular Structure: Allows customization to align with specific monetary policies and financial strategies.
– Retail and Wholesale Transactions: Supports both types of CBDC transactions.
– Lifecycle Management: Enhances currency supply, transfer, settlement processes, and sovereign compliance optimization.
Growing Interest in CBDCs
The interest in developing CBDCs is growing globally. For instance:
– Rwanda has announced plans to launch its CBDC within two years, aiming to improve financial inclusion and provide a safe alternative to cash.
– Ripple Partnerships: Ripple CEO Brad Garlinghouse revealed collaborations with nearly ten governments to develop their CBDCs using Ripple’s blockchain technology.
Nabatech’s selection of Polkadot’s Substrate framework underscores the platform’s robust capabilities in security, scalability, and flexibility, making it a preferred choice for developing sophisticated digital asset solutions for central banks and financial institutions. This move is a significant step towards modernizing financial infrastructures and supporting the global shift towards digital currencies.
Source: cryptodaily.co.uk
