Banks Using Permissionless Blockchains for Transactions Face Multiple Risks: BIS Basel Committee Says

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By Maya Cantina

Banks are also exposed to political uncertainty, as new legislation could “change validator behavior,” making “blockchains themselves operationally unstable.” A ban, for example, could “reduce the amount of computing power or staked native tokens available to secure the blockchain, temporarily increasing the risk of a 51% attack“where “a coordinated effort is made to control more than 50% of the validating nodes.”

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