Few issues in financial policy are more controversial than the impact of blockchain, the distributed ledger technology that sits behind the digital currency bitcoin. Does it threaten not only the profits of financial intermediaries but also their business models? Could it undermine the control that central bankers exert over global payments and securities processing? Or is it a tool to streamline cluttered processes, improve resilience and enhance transparency?

The case for change is clear. Even if the dangerous experiment of negative interest rates proves to be shorter lived than many fear, banks’ need for more operating leverage will remain in a modest growth economy. The key to cutting costs? Harnessing technology to improve productivity.

Enter blockchain . It offers the promise of a unique shared database across multiple sites and geographies as a public ledger of all transactions. Broad-based adoption could take as long as a decade, as issues such as scalability and standards have yet to be resolved. And while there is a great deal of hype surrounding the technology, there are also several misconceptions.