Block chain technology acceptance grows as BIS endorses & China adopts SCF system
Distributed ledger technology is slowly but surely being penetrating thinking and systems in the financial services space;
- BIS’s Committee on Payments and Market Infrastructures have published a report, Distributed ledger technology in payment, clearing and settlement - An analytical framework which concludes that the technology has opportunities but also risks. “The framework focuses on the potential implications for efficiency and safety and for the broader financial markets. The framework is directed primarily at arrangements that involve restricted ledgers (ie access to which is for approved users only), reflecting the main types of arrangement currently being developed in the financial sector, which are of particular interest to the relevant authorities.”
- Blockchain Platform For Supply Chain Finance Launches In China: CFO Innovation reports that, “Dianrong and FnConn have launched Chained Finance, the first-ever blockchain platform for supply chain finance. The new platform leverages advanced financial technology to meet the hugely underserved needs of supply chain finance in China.” They explain how, “The two companies recently completed a successful pilot and proof of concept of Chained Finance by securing funding for small and medium enterprises (SMEs) in China that were otherwise unable to secure needed capital. Chained Finance originated US$6.5 million (RMB45 million) in loans for these SME supply chain operators.”
- The excellent Penny Crossman in the American Banker concluded that”
- Things are moving faster than expected; blockchain technology should be ready for broad use by banks within a year.
- Bankers see blockchain technology mainly as a way to save money
- The idea of "permissionless" blockchains has pretty much been dropped by the industry
- Integration/collaboration is the biggest perceived hurdle
CTMfile take: Block chain technology and distributed ledger technology is coming to your financial and banking services, but will it make a difference? Thoughts, anyone?
Like this item? Get our Weekly Update newsletter. Subscribe today