Daily Bits – central banks, equity markets and fun stuff like that – July 11th, 2017

I’ve been skimping on posts because I’m working on an overview of central bank activity in the blockchain space – so much more complex and varied than you probably imagine. But I’m sure I’ll have stuff to share soon!

Meanwhile, some random (ok, not so random) thoughts…

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My article on CoinDesk this week, on Delaware’s bill amendment that expressly allows shares of Delaware-registered companies to be traded on a blockchain. This is huge, given that two thirds of listed companies in the US are incorporated in Delaware.

Traditional equity markets best take note.

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Speaking of central banks, this report from CoinDesk earlier today is intriguing: UK Central Bank Tests Ripple’s Interledger Protocol for Cross-Border Payments.

Two simulated settlement systems were set up, representing different currency regimes. Then Ripple’s Interledger protocol – which can enable payments across different ledgers – was used to simulate a transfer of funds. Apparently the two systems reconciled in sync, and invalid transactions were satisfactorily rejected.

So far so good. 😊

Since this latest reveal is crying out for some context, however, it’s worth noting that it is not the BoE’s first foray into blockchain testing. And, it is not the only central bank working on a similar idea.

It is, however, a big step forward in what is arguably one of the most compelling use cases: cross border payments.

More detail will follow on the above context soon…

(I found it amusing that the BoE felt it was necessary to clarify that no central bank accounts were harmed in the making of this film, I mean, the test area was completely separate from the real thing. Just in case you were worried…)

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Here, from a while back, is a masterful piece from Colin Platt on the potential impact of blockchain on the financial system. He takes a look at each of the main pillars (central securities depositories, central clearing houses, etc.) and thinks about how (if) their role will change as blockchain edges its way in.

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Thank God for the chicken police…

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