London Stock Exchange is in favor of Blockchain technology

Fiat currencies are hampering blockchain innovation, at least according to David Harris, head of commercial innovation at the London Stock Exchange Group (LSEG).

London Stock Exchange Group (LSE.L) is an international market infrastructure company. Its diversified global business focuses on capital formation, intellectual property and risk and balance management. LSEG operates an open access model, which offers options and partnerships to customers in all its businesses. The group can trace its history until 1698.

In an opening speech at the third annual London Blockchain Summit, Harris told a crowd of about 150 global bankers, insurers and technology providers that he looks forward to the day when central banks issue their own cryptocurrencies.

The reason that Harris gives to want to move to a cryptocurrency equivalent is derived mainly from the role of LSEG in the Borsa Italiana project, which seeks to issue some types of values in a Blockchain.

Even with the tests in progress, in which several unlisted companies have had access to services normally reserved for listed companies, LSEG continues to encounter obstacles related to the payment of securities with cash.

“Eventually, and hopefully, central banks will issue their currency in digital form in a chain of blocks, because then that will facilitate the collateral movement.”

The statements underscore that while some central banks have considered cryptocurrencies to be a threat and moved to prohibit them, others are exploring the potential benefits of issuing their native trust currency in a chain of blocks.

But, Harris is aware that there are factors that prevent the early application of blockchain technology.

Since this technology was largely developed to make banks and other intermediaries unnecessary, once a central bank decides to issue a cryptocurrency, that could challenge the entire concept of commercial banking, Harris said.

These statements have enthused those present. Increasingly we are more with institutions and public figures in favor of the Block Chain. Is it that the perception of the traditional market has changed or that they have seen the economic benefits that it has?

Daniela Caro

Daniela Caro

Writer by birth, curious by profession ... I learn a little more every day from the cryptocurrency.