We’re starting to see some momentum in blockchain, with blockchain being touted as the glue that is going to drive a productivity revolution across the globe on par with what Henry Ford did with the automobile.
Big banks around the world are moving at pace to build blockchains. A group of 40 global banks have used different distributed ledger technology to simulate trading of commercial paper. This new technology promises to slash costs and speed up transaction times for banks.
And while this won’t wipe out central clearinghouses and broker-dealers, it is going to shake up the $4-$5 billion worth of securities traded for example in Australia. And Blockchain might just wipe out about $47 million in revenue the ASX gets from clearing trades every year if it ends up hastening the move to instant settlement.
All this is moving forward quickly since the ASX selected Digital Asset Holdings to develop solutions for the Australian market usilising Distributed Ledger Technology. And that happened just a few months ago in January!
And blockchain isn’t just the domain of the Tech companies. Overstock.com, Inc, a company on the NASDAQ exchange OSTK recently announced at the 41st Annual International futures industry conference that it plans to complete the world’s first public offering using proprietary blockchain technology. The stock will trade and settle exclusively through their alternate trading system. What’s interesting is that Overstock isn’t a tech company, but is an online retailer that sells a broad range of products at low prices.
Blockchain and Bitcoin. The technologies have the ability to be major game changers in the Australian finance area, and that will have flow on effects to the Australian accountants working with these technologies.
Definitely 2 technologies to keep monitoring!