Blockchain and digital assets: market dynamics
- Participants continue to see a key benefit of blockchain being disintermediation – sharing a database without a central administrator.
- However, it is necessary to have a centralised organisation sitting above the decentralised technology to develop the technology and bring it to market
- Others benefits of blockchain include: fast and free ownership transfers, complete record of activity, and lower transaction costs
- VCs/investors appreciate the liquidity of cryptocurrencies, but still look for long-term investments
- Certain jurisdictions – Bermuda, Gibraltar, Malta – are positioning themselves to take advantage of ICOs/blockchain. Gibraltar could have one of the world’s first regulated cryptocurrency exchanges in 2019
- A recent assessment by the Bank of England found crypto-assets do not present a risk to financial stability
- Industry challenges for cryptocurrency: data transfer, privacy and storage; and trust and transparency between consumers and providers