United States Commodity Futures Trading Commission Chairman J. Christopher Giancarlo says that blockchain technology would have allowed for a "Far faster, better-informed, and more calibrated regulatory intervention" in response to the 2008 financial crisis.
Giancarlo made his remarks during a speech - entitled "The New Futurism: 21st Century Financial Markets, Technology and Regulation" - which was delivered at the Commissione Nazionale per le Societa e la Borsa in Rome, Italy on June 3.
Giancarlo devoted the first part of his speech to reflections on blockchain and the 2008 financial crisis - both in regard to the latter's unfolding and aftermath.
GFI operated a trading platform listing credit default swaps, he noted, situating it at the very epicenter of systemic risk.
In his comments, Giancarlo said that had regulators had access to blockchain-powered real-time trading ledgers of large Wall Street banks, they would have been spared the complex and cumbersome task of having to "Assemble piecemeal data to recreate complex, individual trading portfolios" - with major implications for their handling of the crisis.
"What a difference it would have made a decade ago if blockchain technology on a private distributed ledger accessible to regulators had been the informational foundation of Wall Street's derivatives exposures. At a minimum, it would certainly have allowed for far faster, better-informed, and more calibrated regulatory intervention instead of the disorganized response that unfortunately ensued."
2008 regulators, the chairman underscored, would have significantly benefited from access to real-time distributed ledgers.
The usefulness of DLT could be yet further boosted by implementing innovative cognitive computing capabilities, he said, in order to identify the "Anomalies in market-wide trade activity and diverging counterparty exposures" that point to a heightened risk of bank failure.
Giancarlo also predicted that blockchain will have a "Broad and lasting impact" across a range of applications, among them "Payments, banking, securities settlement, title recording, cyber security and trade reporting and analysis."
As reported, in a speech this spring, Giancarlo underscored that the under his aegis, the CFTC had "Resisted calls to use our legal powers to suppress the development of crypto-assets."
US CFTC Chair: Blockchain Would Have Improved Regulator Response to 2008 Financial Crash
pubblicato su Jun 4, 2019
by Cointele | pubblicato su Coinage
Coinage
Notizie recenti
Vedi tutti
Blockchain Bites: Bitcoin's Run, Uniswap's Hemorrhaging Value, Anchorage's Banking Bid
Bitcoin is nearing all-time highs in price and market cap last set three years ago.
Japan's megabanks to lead experiment with digital yen
We have, in order, Cheese Bank with a $3.3 million theft, Akropolis with its $2 million loss, Value DeFi with a whopping $6 million exploit and finally Origin Protocol's loss of $7 million.
Number of new Bitcoin addresses spikes amid growing FOMO
Japan's three largest banks, as part of a group of 30 private sector actors, are set to collaborate on an experiment with a digital yen.
Not just Wall Street: Quant trader explains why Bitcoin price is going up
Sam Trabucco, a quantitative trader at Alameda Research, believes four general factors are pushing up the price of Bitcoin.