Japan's Daiwa Securities Group and Myanmar plan to use blockchain technology for transaction payments in the stock trading market

According to a report translated by Huobi Blockchain Research Center, a well-known Japanese investment banking securities company will negotiate with the Myanmar government on the introduction of data blockchain technology for domestic stock trading payments in Myanmar.

During the translation process, Huobi Blockchain Research Center, the earliest blockchain research center in China, found that a report released by Nikkei News stated that Daiwa Securities Group will help Myanmar use data blockchain technology in its stock trading, and expects that the transaction infrastructure based on data blockchain technology will play a practical role in the next two years. The distributed ledger platform will be connected with the Yangon Stock Exchange, the earliest and most important stock exchange in Myanmar, and some other securities companies in the country.

Huobi Blockchain Research Center found that the research institute of Daiwa Securities, in collaboration with other departments of the group, has begun testing the use of servers for blockchain solutions, which are similar to those that can be used or are currently used in Myanmar. The tests will be carried out between June and September, and these tests will go a long way to dispel the doubts of domestic authorities and management about this most promising innovation in the field of financial technology and blockchain.

Myanmar’s securities market will be connected to a common data blockchain in the near future.

The testing process is to test how the stock trading payment facility built on blockchain technology can work in Myanmar, a country that often suffers from power outages. Since Myanmar began stock trading in March 2016, five securities companies have been established, and more are expected to emerge in the future.

Nikkei pointed out that Myanmar would provide a good example of how blockchain could be used for trade:

Blockchain technology is not suitable for high-speed transactions. Unlike most other exchanges that place orders continuously, the Yangon Stock Exchange only places stock buy and sell orders twice a day, once at 11 a.m. and once at 1 p.m. Therefore, Daiwa Securities does not expect to encounter any technical problems when introducing the system.

The use of blockchain technology in Myanmar is likely to have a promising outcome, with Daiwa Securities’ involvement in the construction of the Yangon Stock Exchange earlier this year. The Yangon Stock Exchange was established in 2014 as a joint venture between Japan Exchange Group, Daiwa Securities Research Institute and Myanmar Economic Bank, and opened in late 2015.