Blockchain — the technology behind bitcoin — is not only making waves in the banking industry, but its application could also have a big impact on emerging economies.
Speaking at a panel on financial innovation at Asian Financial Forum on Tuesday, Gregory Gibb — chairman of Shanghai Lujiazui International Financial Asset Exchange — noted that blockchain’s could fill the gap around registration, settlements, and payments support. But the commercialization of blockchain could be some way off, he said:
In the short-term blockchain is more of an infrastructure build than a commercial opportunity, that is a little bit further out.
Jonathon Allaway, Group Technology Officer for Financial Services at Accenture, echoed Gibb, adding:
One of the biggest issues in terms of bringing people into the formal financial sector is related to institutional issues with tracking collateral registries and title registries. The notion of a distributed ledger could help a lot of emerging market governments to leap ahead by providing some of the building blocks of modern finance.
Far from being a buzzword or a short-term money spinner, the growing consensus is that blockchain is changing finance, and it is in for the long haul.
Correction: This story was updated to correct the spelling of the name of Jonathon Allaway of Accenture and to fix the spelling on the name of Shanghai Lujiazui International Financial Asset Exchange. We regret the errors.
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