Cybersecurity

Could Blockchain Have Prevented Bangladesh’s Central Bank Hack?

  • Swift CEO says blockchain is an option to secure messages
  • Payments cooperative is part of a major blockchain project

Blythe Masters.

Photographer: Simon Dawson/Bloomberg
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In late April, blockchain evangelist Blythe Masters told a crowd in the London Docklands that banks could solve many of their problems if they embraced the transaction-processing technology.

The former JPMorgan Chase & Co. executive could also have been talking about Swift, which hosted the conference. The messaging system for transfers between banks was facing a crisis that had been bubbling under the surface for months. Hackers have exploited the Swift system to steal $81 million from Bangladesh’s central bank, and may have infiltrated as many as 12 banks.