TNF: DLT is not a panacea
26 June 2018 Vienna
Image: Shutterstock
Distributed ledger technology (DLT) is not a panacea, but the industry will have to learn about it, according to a panel at The Network Forum in Vienna.
The panel featured Gavin Wells of Digital Asset, Peter Randall of SETL, Margaret Harwood-Jones of Standard Chartered Bank and Ryan Marsh of Citi.
Although DLT is just a technology, it does offer new avenues for the industry, according to a speaker. They suggested that DLT provides better data protection and greater efficiency.
However, in doing so, the panellist explained that it challenges entities and roles where it can provide better data management. The speaker said: “If a system can do it, you don’t need to.”
Another speaker said: “While DLT will give the industry a chance to be more efficient, it could disintermediate companies.”
According to one panellist, the early opportunities that companies should be looking for in DLT is how to streamline processes.
However, agreeing with the earlier comments, the speaker said: “There is a threat of disintermediation and it should be seen as a warning.”
A panellist suggested that Financial Management Information Systems (FMIS) are critical in this process. They noted that the best chance of wide adoption will come from these systems, but it is important to consider the challenges associated with the technology.
The panel then moved on to discussing standards around DLT. The panel asked the audience, who they believed would be best to drive standards for DLT in securities services. Of those who responded, 27 percent answered regulators, 14 percent said SWIFT, 30 percent noted ISO, 9 percent suggested International Swaps and Derivatives Association or FPL and finally, 20 percent said other.
One panellist suggested that standards should follow the industry path rather than following clever people who don’t work within the environment.
The panel featured Gavin Wells of Digital Asset, Peter Randall of SETL, Margaret Harwood-Jones of Standard Chartered Bank and Ryan Marsh of Citi.
Although DLT is just a technology, it does offer new avenues for the industry, according to a speaker. They suggested that DLT provides better data protection and greater efficiency.
However, in doing so, the panellist explained that it challenges entities and roles where it can provide better data management. The speaker said: “If a system can do it, you don’t need to.”
Another speaker said: “While DLT will give the industry a chance to be more efficient, it could disintermediate companies.”
According to one panellist, the early opportunities that companies should be looking for in DLT is how to streamline processes.
However, agreeing with the earlier comments, the speaker said: “There is a threat of disintermediation and it should be seen as a warning.”
A panellist suggested that Financial Management Information Systems (FMIS) are critical in this process. They noted that the best chance of wide adoption will come from these systems, but it is important to consider the challenges associated with the technology.
The panel then moved on to discussing standards around DLT. The panel asked the audience, who they believed would be best to drive standards for DLT in securities services. Of those who responded, 27 percent answered regulators, 14 percent said SWIFT, 30 percent noted ISO, 9 percent suggested International Swaps and Derivatives Association or FPL and finally, 20 percent said other.
One panellist suggested that standards should follow the industry path rather than following clever people who don’t work within the environment.
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