CFTC Commissioner: Wall Street credit default swap (CDS) test proves the value of blockchain technology

We have previously reported that seven Wall Street firms have completed a test of applying blockchain technology to the credit default swap trading process. Yesterday, a CFTC commissioner made a public speech on this test.

J Christopher Giancarlo, a member of the Commodity Futures Trading Commission (CFTC), publicly stated yesterday that blockchain and distributed ledger tests recently completed by some large financial institutions have demonstrated the value of blockchain technology.

Speaking at a Cato Institute event yesterday, Giancarlo cited a recently completed successful test of using blockchain technology in the credit default swap market, which was conducted by the DTCC and involved Bank of America, Citigroup, Credit Suisse and Axoni.

“I think this test demonstrates the merits of distributed ledger technology. And there are other equally promising projects underway.”

The test included 85 cases of distributed ledger network functionality and resilience. Giancarlo believes that the test proves that the development of blockchain technology has outpaced the regulatory speed of regulators, and he personally believes that regulators should adopt a "do no harm" strategy for regulation.

Giancarlo's speech that day covered a wide range of topics, from the collapse of Lehman Brothers to the rise of Bitcoin and its underlying blockchain technology. He had already spoken about many of these topics at the DTCC blockchain seminar in March this year.

“For market participants, distributed ledger technology can help manage the capital complexity created by the myriad of different regulations from domestic and international regulators.”

J Christopher Giancarlo

On the regulatory front, Giancarlo said he believes regulators around the world need to coordinate how data is shared, and that blockchain technology could provide a solution.

At the same time, Giancarlo said he was concerned that there would be “dozens of different directions” to regulate blockchain technology at the same time, so he supported global regulators to unite and jointly regulate the industry.

For more information on the blockchain technology test, click

Original: http://www.coindesk.com
By Pete Rizzo
Compiled by: Kyle
Source (translation): Babbitt Information (http://www.8btc.com/proves-merit-blockchain-tech )