Four experts discussed the future blockchain in financial services, agreeing on the importance of specialization in a panel on crypto derivatives at Synchronise Europe in London today, June 18.
Some
of the original conceptualisation of blockchain needs to be available
publically to be materially modified to suit the needs of diverse
financial services, said Kelly Mathieson, head of enterprise solutions
at Digital Asset.
Mathieson argued that enterprise grade versions
of blockchain technology are now viable, and that there has been a
divergence from the original blockchain concept. Those versions of
blockchain are needed to be changed in a way that would enable them to
fit for purpose, and in some cases to be legal in certain jurisdictions,
she said.
Mathieson further addressed the issue of general purpose language for smart contracts, stating:
“There
has begun a shift away from general purpose language for uses in smart
contracts, where we really want to begin to model and represent the
legal definition and the market rules. Many of these early languages put
all the data out there and then attempted to express financial services
entitlements by either imposing confidentiality on it or obfuscation.”
Clive
Ansell, head of market infrastructure and technology at ISDA, agreed
that the development of blockchain-based solutions needs community
engagement with real business challenges. He said that it is necessary
to create an environment that allows firms not to vary their smart
contracts unless they really have to.
Lee Braine, Investment Bank
CTO Office at Barclays, further argued that the process of
standardization will ensure long-term viability. Industry players should
purportedly define what they have done for their latest technological
refresh.
Executive director at UBS, Yunqinq Zheng said that the
active DApp ecosystem will appear once everyone is digitized and
standardized, highlighting the importance of cultural and mindset
transformation.
Earlier in June, Hester Peirce, commissioner at the Security and Exchange Commission’s (SEC), commented
on the SEC’s approach towards this category of highly regulated
financial derivatives, noting that the SEC is “still smothering ETFs
with personalised attention as if they were infants.”
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