The European Union is having it’s financial regulatory agency, European Securities and Markets Authority (ESMA), has predicted that an increased use of distributed ledgers — including the blockchain — could improve the verification of clearinghouse and other transactions.
Also read: New FinTech Australia CEO Pursues Future of Blockchain
ESMA Experiments with the Blockchain
ESMA launched a consultation team to investigate the matter in more detail, and in an isolated setting. While the team said it was aware of some issues raised about bitcoin, its focus will be strictly limited to the use of blockchain technology in relation to securities markets. As it is, the team is indifferent to the use of bitcoin and other cryptocurrencies, saying the regulation of virtual currencies would be left up to the discretion of the European Central Bank or the European Banking Authority.
The team says it understands that the integration of blockchains will almost certainly come withsome advantages, but they were also interested in understanding the specific problems of relying on the technology. It is unknown what problems the team expects to see while experimenting with distributed ledgers because the subject was not discussed any further than that.