For some years, Distributed Ledger Technologies (DLT) have been one of the most popular IT solutions to generate disruptive innovation in the financial services industry. Next to commercial institutions, national banks and regulators have also begun to adopt blockchain technologies globally. Distributed ledgers with an interface for supervisory authorities seem to be interesting for reasons of transparency and control.
Our research shows that their current initiatives mostly focus on payments and monetary transactions. While other countries still study the potential impacts of blockchain-based payments, some of the central bank digital currency projects have already reached an introductory phase. We note that particularly in some Asian countries far-reaching activities have been undertaken to make the technology broadly applicable. Although most of the projects are concerned with the digitization of central bank money, in some countries far more than just the means of payment is planned to be digitized.
BearingPoint is a pioneer in RegTech DLT solutions and actively researching current global developments. As a thought leader, and together with our clients, we are designing and developing solutions on how regulation can be innovated with blockchain technology. We expect regulatory authorities and central banks to soon use DLT-based securities transactions, and regulatory reporting facilitated by blockchain.