Bank of England: DLT change or will lead to new securities monopoly


nnnRecently, the Bank of England researchers in a new issue entitled “Securities settlement of distributed led books technology economics,” the research paper concluded that if built on the distributed classification of books (DLT) on the Of the securities settlement services continue to be so unregulated, then it is likely to develop into a monopoly trend. In general, this research paper is still a prudent and optimistic attitude, both affirmed the technology on the overall structure of the settlement brought positive changes, but also noted the possibility of the formation of a monopoly.n
nnTranslation: Clovern
nIn a new paper, Bank of England researchers said that if the securities settlement services built on distributed classified books (DLT) continue to be unregulated, it is likely to develop into a monopoly.n
nEvangelos Benos, Rodney Garratt and Pedro Gurrola-Perez of the Bank of England staff in the newly published research paper entitled “Economics of Securities Settlement of Classified Bibliographic Technology” argue that even if the technology itself is in the overall structure of the securities settlement department Will bring about positive changes, such a monopoly of the results is not impossible.n
nThe authors conclude that DLT-based services may “focus on the hands of a small number of service providers” for the current clearing industry. In this case, market participants may be more susceptible to price discrimination or inefficient pricing mechanisms. The authors argue that service providers may eventually “gain the majority of market earnings” because the industry itself is more susceptible to monopolistic structures.n
nIn other words, the research paper does take a cautious and optimistic attitude, that this technology can rewrite the settlement process on the daily operation of the participants play a role in the way.n
nThe author writes:n
nn”DLT is likely to increase efficiency and reduce the cost of securities settlement, but this technology is still evolving, is still not sure a DLT-based securities settlement solution will eventually use what form (if any) … “n
nnThey continue to say that distributed classified books “may be completely from the issuance of securities to settlement after the transaction process to completely intervene, in order to achieve a purely P2P transaction structure.”n
nIn fact, the Bank of England is one of the most proactive central banks for distributed classified books and block-chain technology, and has previously said it will build the next version of the official settlement system to be compatible with distributed categorized books.n
nAnd it is worth noting that the central bank governor Mark Carney in January had said the technology may “reshape” the banking industry.n

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