Peter Hiom, the CEO of Australia’s Securities Exchange (ASX), recently expressed positive sentiments about the future of blockchain technology. According to him, everyone will be using the technology in the coming seven years.
The CEO made the comments during the vForum conference that took place in Sydney earlier this week. In his opinion, no one will be talking about the technology in the next few years. This is because it will be the standard medium via which data is shared.
Still in the Early Stages
However, he noted that because blockchain technology is still an emerging technology, mass adoption is not likely to occur soon. He noted that the technology was still new and everyone would have a unique entry point. Peter Hiom noted that the ASX was planning to use the technology for clearance and settlement. However, he noted that others could use it to improve efficiency in various sectors. He noted that in about 15 years, everyone would be wondering how the world even functioned without blockchain technology.
Hiom also discussed the exchange’s use of the distributed ledger. He noted that it would make it possible for businesses to share data with others securely. A key advantage of the technology, according to him, is that anyone can independently verify the source of data without having to contact the exchange. This would improve the efficiency of operations and reduce back and forth messages between the exchange and other firms. In his opinion, the ability to easily send out and synchronize data would be beneficial to various industries including the legal sector, insurance sector, logistics industry, and the financial sector.
The Exchange’ Decision to Use Blockchain Technology
In Jun 2016, the ASX announced that it would replace the existing Clearing House Electronic Subregister System (CHESS) with a blockchain-powered platform. The CHESS platform has been running for 25 years. Since then, the ASX has been making regular updates regarding the progress of its CHESS replacement via its official site.
In September 2016, the ASX announced that it had successfully tested the prototype version of the platform. Since then, it has been working to strengthen the system, which it will use for equity settlement and clearing. The ASX plans to have the platform offer users 24 hour OTC clearing while also offering additional functionality.
As part of its effort to create a robust platform, it has been conducting far-reaching consultations. This includes quarterly webinars that usually involve over 150 participants. It also often performs demonstrations of the platform’s capabilities. These demonstrations involve over 100 internationally recognized firms. Additionally, it has held various engagement workshops to ensure that the platform meets the needs of its users.
Some of the expected benefits of using the blockchain are reduced costs as well as the creation of new services that would not have been possible without the technology. The ASX also expects that the blockchain-powered platform will bolster Australia’s position as a powerhouse of innovation in the financial sector.
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