Permissioned Payment Network

Definition ∞ A permissioned payment network is a blockchain-based system where participants must obtain authorization to join and transact. Unlike public, permissionless blockchains, access to this network is controlled by a central authority or a consortium of entities. This structure allows for greater control over participant identity, transaction privacy, and regulatory compliance. Such networks are often utilized by financial institutions for interbank settlements or corporate payments.
Context ∞ News reports frequently discuss permissioned payment networks in the context of central bank digital currencies (CBDCs), interbank settlement systems, and corporate blockchain solutions. These networks offer a balance between the efficiency of blockchain technology and the need for regulatory oversight and privacy in traditional finance. Developments in this area highlight the ongoing integration of distributed ledger technology into established financial infrastructures, particularly for wholesale transactions.