CFTC chair: Blockchain would have been the key to regulatory intervention in the 2008 financial crisis
|- Blockchain could have allowed regulators access to trading ledgers of the Wall Street banks.
- Giancarlo believes blockchain will have “a broad and lasting impact” on various financial applications.
The chairman of the United States Commodity Futures Trading Commission, J. Christopher Giancarlo is reported to have said in a recent speech that the blockchain technology would have been instrumental to the regulators in dealing with the financial crash in 2008.
The speech was titled “The New Futurism: 21st Century Financial Markets, Technology, and Regulation” and was delivered at the ommissione Nazionale per le Societa e la Borsa (CONSOB) in Rome, Italy on June 3. Giancarlo said that if regulators had the advantage of the blockchain technology, they would have had “access to trading ledgers of the Wall Street banks, they would avoid the uphill task of having to assemble piecemeal data to recreate complex, individual trading portfolios,” in turn, be able to properly handle the crisis.
“What a difference it would have made a decade ago if blockchain technology on a private distributed ledger accessible to regulators had been the informational foundation of Wall Street’s derivatives exposures. At a minimum, it would certainly have allowed for far faster, better-informed, and more calibrated regulatory intervention instead of the disorganized response that unfortunately ensued.”
Before concluding his speech, Giancarlo remarked that blockchain was going to have a “broad and lasting impact” across a wider range of applications including ayments, banking, securities settlement, title recording, cyber security and trade reporting and analysis.”
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