Financial Technology

Financial Technology

February 15, 2017

Blockchain Makes a Comeback

Blockchain isn’t just for criminals.

According to a recent survey by the Post-Trade Distributed Ledger Group, nearly half of its membership will adopt blockchain technology in the next three to five years. Twenty-nine percent of PTDLG members expect blockchain adoption in this space to happen in the next year or two, according to a story by Global Banking & Finance Review. And, it says, 21 percent of them think it will take more than five years.

For those who are unclear about just want blockchain is, it’s a digital ledger technology in which transactions made in Bitcoin or another cryptocurrencies are recorded chronologically and publicly.

The Asset Servicing Times, meanwhile, notes that while distributed ledger technology underpinned Bitcoin, its role in capital markets has been unclear until recently. However, the article continues, global financial institutions such as HSBC are working with groups like PTDLG and R3 CEV to identify commercial opportunities for blockchain and to create standards around it.

And, the article notes, last year these technologies were applied in several asset classes and even in the occasional market. The article pointed to the Australian Securities Exchange’s deployment of DLT to attain near real-time equity trade settlement as one example.

Rich Tehrani, CEO of tech media company TMC (News - Alert), in a January blog explained why 2017 will be the year of blockchain, Bitcoin, and fintech. In the piece he reminded us why Bitcoins are better than gold. But he also noted that when hackers started to steal Bitcoins, the idea of cryptocurrencies took a big hit.

Although Bitcoin has had its highs and lows since its introduction in 2009, it has not disappeared. In fact, a November piece by Arstechnica says the blockchain technology on which Bitcoin is based is now in the limelight and could potentially be a massive disruptor.

“Sweden is trialling a new land registry that uses a blockchain, dozens of startups spanning numerous sectors are poking around at possible uses, and importantly policy makers such as the European Parliament have voted in favor of a more hands-off approach towards blockchain tech regulation,” writes Alistain Dabbs for Arstechnica.

Get the tools you need to navigate Blockchain terrain and opportunities during The Blockchain Event July 17-20 at Caesars Palace in Las Vegas, NV. 

Edited by Stefania Viscusi

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