The Blockchain Could Make Existing Securities Industry Players Redundant, Says BNP Paribas Analyst


Writing on Quintessence, the financial magazine of BNP Paribas, financial securities research analyst Johann Palychata analyzes the possible impact and future implications of the blockchain for securities markets. He believes that Bitcoin is really an innovation and a disruptive open-source technology for the financial world.

“Its core is the first successful attempt for a secure and decentralized register,” says Palychata. “It should be considered as an invention like the steam or combustion engine. ”

BNP Paribas, a French bank headquartered in Paris that was formed through the merger of Banque Nationale de Paris (BNP) and Paribas in 2000, is one of the largest banks in the world. Based on 2012 information BNP Paribas was ranked as the third-largest bank in the world, as measured by total assets, by Bloomberg and Forbes.

Though Palychata’s opinions shouldn’t be interpreted as an official position statement from the bank, publication in the official BNP Paribas magazine lends them a certain official aura.

Palychata considers two possible scenarios for blockchain-based securities markets.

“The first scenario creates a total disruption. In its purest form, a distributed blockchain system allows all market participants direct access to the

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