In the recent years, blockchain has started to create a buzz as it laid the foundations for the digital payment methods. The innovative technology is a software platform for digital assets. Blockchain has been accepted with great controversy among people and officials, but it seems that the technology started to reeve its way through the difficulties. According to Nasdaq Head of Product Development, blockchain is ready to be used on some of the largest trading markets in the world, which does not mean that the technology will easily crack into financial systems.
On 31st October, London hosted a large conference specially dedicated to blockchain technology – London Blockchain Summit. The speaker line-up included Nasdaq Clearing’s Head of Product Development Gustaf von Boisman. He shed light on blockchain’s development and its introduction to the world. The recently-appointed von Boisman explained that there is a long and bumpy road in front of the advanced technology before it is implemented in various sectors. He pointed out that this is not the first time, in which a long-anticipated innovation can barely find any use within any system.
To make it clearer, von Boisman added that blockchain can reduce the settlement period to real-time speeds, but it will be hard for the technology to be integrated into the financial sector. He explained that the world is still not ready for such a rapid change and Nasdaq prefers to avoid any disruptions in the system as the technology is still in its experimental stage. Von Boisman added that to efficiently implement the blockchain technology and deploy its full potential, the shift should happen gradually.
Blockchain is the Future of Cash-Intensive Business Units
As it can be recalled, Saudi Arabia Stock Exchange and the Moscow Stock Exchange implemented the technology to reduce the settlement period to the same day (T +0). But the two countries bumped into a high criticism as investors had to pay prior to receiving any security. Consequently, it did not take long before Moscow announced that it is to restore its old T +2 settlement period. This means that the settlement date for marketable stocks is 2 business days after the transaction date. The reason for the delay in the actual settlement of the deal is the fact that the delivery of a particular security might take some time and prices could fluctuate.
Even though blockchain meets certain difficulties in its actual implementation, Malta expressed its willingness to integrate the technology in its gambling industry. It was explained that this is to further improve the country’s gambling sector and set it apart from all the rest. Market experts project that the technology is to create a boom in the cash-intensive business units, but it is in the hands of the countries’ officials to establish an adequate legal framework, which is to protect the technology of misuse.