What is the vLEI (Verifiable Legal Entity Identifier)?
The world has seen enormous change over the past years, much of which can be attributed to technological and digital transformation. As a result, a plethora of new economic sectors have formed. Due largely to the Internet, interaction and communication between individuals, organizations, and countries have flourished. In terms of controlling the corporate sector and financial markets, this has created a lot of identity-related difficulties. Seeking out this control is where LEI Codes enter the picture. Simply put, LEI Codes are used to identify legal entities globally. This option enables improved standardization, risk control, and financial market transparency. This article will discuss LEI and its adaptation version, the vLEI.
PharmaLedger utilises vLEI in new healthcare blockchain platform
The vLEI, or Verifiable Legal Entity Identifier, establishes a decentralised and trusted way to verify not only legal entities, but the individuals with the rights to represent those entities, in realt time. A recent collaboration between GLEIF and PharmaLedger has resulted in the vLEI becoming a critical component of a new healthcare service blockchain platform.
The LEI as 'the KYC layer' to a CBDC system
With the rapid digitisation of the global economy new innovations are surfacing which unlock pain points and replace outdated processes. Sometimes these innovations fit together perfectly, in this case we will look at the applicability of the LEI acting as the KYC layer to Central Bank Digital Currencies.
CBDCs using the LEI as a KYC layer harness the benefits of cryptocurrencies, blockchain and distributed ledger technology, while mitigating the downsides they present to a normal, healthy functional banking system.