What is the future of the capital market?
The future of the capital market is now – and increasingly will be – characterized by a constant tension between, from one angle, a trend to innovate and to translate technological revolutions into the world where capital flows are handled, and, from somewhat opposite side, a trend to regulate the radical change of the mechanisms of the capital markets. Hopefully, these two trends will be resulting in a quality that will be a good combination of a progress, efficiency, formal certainty and protection of the market’s participants.
How do you see the future of tokenisation of assets?
I tend to see the future of tokenization of assets as a concept to build up “tiers” of financial instruments. There are clear differences between a representation of assets by means of tokens and classical derivative financial instruments, but in essence, these two constructs resemble one another. Having said that, there is a viable perspective for the new concept and its implementations by different companies, like HighCastle, which combine DLT with securities-backed notes in one HighCastle’s SmartNote solution.
It is also a signal for the regulators, that more “air” is needed for the system. Capital markets, as we know them today, are definitely over-regulated.
What is the role of blockchain in the development of the stock market and trading infrastructure?
It is clear that blockchain technology will cause a new wave towards operational excellence. First applications are already being tested, in the area of clearing and settlement of financial transactions. As regards the stock exchanges, apparently they are exploring blockchains much less, for their operations – even though they invest in companies that act in this eld. Blockchains will influence business in general, therefore it is unlikely that trading platforms will be exceptions to that.
How does Blockchain in influence the work financial services regulators?
Regulators evolve and, for instance, some of them have already acknowledged the existence of fintech as a new category of entities subject financial supervision. Blockchain seems to be a technological support for doing business in the nancial markets, which means that the regulators should already be acquainted with this technology.
What is the role and future of crypto in the global economy?
We are in the course to discover new continents within the global financial markets. Apparently, blockchains bring new solutions to old problems and create new problems and new opportunities. Cryptocurrencies have the same features. No doubt the world of nance will not be the same as the discovery of these new continents had been made.
Image Credit: tayloright