The UK financial conduct authority will bitcoin cross-border transaction test
The British media have reported that the UK financial conduct authority (hereinafter referred to as the authority) decided to use the block chain cross-border settlement. The Financial Services Regulatory Commission has the same digital currency company Epiphyte launched a cooperation, the application of block chain technology the successful implementation of the cross-border payments. Previously, the British financial regulatory agencies to consider the approval of some block chain companies use bitcoin technology. This is a rather surprising event, this symbol indicates the legitimacy of the blockchain technology over a longer period of time will not be questioned.
The administration strategy director ChrisWoolard said, block chain technology has some interesting potential applications, and some authorities are in discussions, see how to apply these to financial services, compliance benefit consumers or make business easier. In the block chain, the authority to encourage it for some. For example, the blockchain company Ripple, the company’s main business is to help banks make cross-border payments more convenient.
The authority responsible for the supervision of banks, insurance and investment business, including securities and futures, their tolerance for risk is very low, and will be more inclined to take preventive measures rather than see the damage occurred. This method will also mean more use of judgment, namely professional knowledge to judge whether the damage to consumers is likely to occur, and based on the forward-looking analysis and corresponding intervention. Last spring, the authority for financial technology companies to develop a “regulatory sandbox”, and received from the company for about 69. The sandbox creates an atmosphere for early entrepreneurial companies and asset managers to establish financial technology solutions. Today, the company will be the same as the Epiphyte London remittance authority by point to point protocol, such as bitcoin, to achieve economic efficiency and safety of transaction.
The Supervision Bureau said in the sandbox period, Epiphyte plans to provide a solution for the traditional society for Worldwide Interbank Financial Telecommunication solutions. Epiphyte said the company will be deployed in a few weeks ahead of a platform called SpecialFX, this program will establish legal tender and bitcoin contact, and as a basis for settlement mechanism.
Epiphyte CEO EdanYago said, “in reality, this solution will by the regulatory authority, but in fact, it is only as part of a sandbox managed, so it will get approval authority. At the same time it is also a platform to realize the technology of financial transfers through the application of bitcoin, Ethereum or any block chain system. So, we can combine with any block chain system.”
Bypassing the traditional solution
Yago said the administration appointed a project to guide the project officer. In the past days, Epiphyte cooperation with many financial institutions including BBVA, now more and more cooperation with Visa. “Our partnership with Visa, and also had many banks made known to the public, but only BBVA,” he explained.
The company explained it by means of the platform with real-time settlement function block chain security technology. Yago added that the authority to help enterprises with different sandbox, the need for the transfer of customer cooperation. Epiphyte will be the first to be extended to the remittance platform company and Forex firm, after the development of retail and business solutions.
Yago also said the agreement will bypass area payment methods for Worldwide Interbank telecommunication or single euro. All will use block chain technology and an automatic exchange payment system and the new system to complete the bill in london. Similar to trading through Worldwide Interbank telecommunication, not only need to wait for a very long life, but also spend a lot of unnecessary expenses. Because the standard settlement need to spend a lot of time, and the managers are too cumbersome and lack of transparency.
Yago explained to the media: “the traditional system there are too many uncertainties, and opaque, even if the transaction has been generated, but you do not know where is the money. From a regulatory perspective, to monitor the trading behavior of these systems, is a big problem for regulators and law enforcement departments, because they are not real-time transaction. The management can not get a real perspective, can be traced back, sometimes even to the different parties involved in the transaction broker or to understand the complete information.”
I believe the blockchain potential
From the administration strategy leader ChrisWoolard and we can learn that have great confidence in the enormous potential of administration on the blockchain. Woolard said that in August, the Supervision Bureau with many enterprises to carry out cooperation, these companies are for the convenience of consumers and improve regulatory compliance research application. Another kind of cross-border transactions through the password money BitX project also in cooperation and supervision bureau.
Epiphyte will use the closed chain technology, support the development of a bitcoin regulatory bureau. Therefore, they will establish a similar Lightning net payment channels, and ensure conversion speed. “All transactions can be written in block chain, somewhat similar to the Lighting. To ensure the safety of the situation, you can feel from the block chain transaction privacy more efficient settlement and better, “added Yago.
The authority in the use of block chain technology showed great determination, so what the sandbox will create what kind of solution? This is really very eye-catching.