Blockchain Technology & Finance: For Better or Worse?

Presented at the Center for International Securities & Derivatives Markets Annual Research Conference, Boston, MA, Oct. 6, 2017. The CISDM is based at the Isenberg School of Business at UMASS-Amherst.

Transcript

1. BlockchainTechnology & Finance: For Better or Worse? Angela Walch Associate Professor St. Mary’s University School of Law Research Fellow UCL Centre for BlockchainTechnologies CISDM Annual Conference, Boston Oct. 6, 2017 1 UCL CENTRE FOR BLOCKCHAIN TECHNOLOGIES
3. How We’ll Proceed • The Financial Sector’s Enchantment with Blockchain Technology. • Why we should care. • Is Blockchain Technology “the one”? October 6, 2017 A. Walch, CISDM Annual Conference 3
4. How Do I Love Thee? • Immutability • Truth • Trustlessness • Security and Resilience October 6, 2017 A. Walch, CISDM Annual Conference 4
6. Why We Should Care • Finance’s most critical systems involved. – Clearing & settlement systems – Central securities depositories – Payment systems – Central counterparties – Trade repositories • How finance tracks who owns (& owes) what. • Critical to maintaining financial stability. October 6, 2017 A.Walch, CISDM Annual Conference 6
7. Protecting Critical Systems • Global regulators set standards to mitigate operational risks to important financial systems. (Principles for Financial Market Infrastructures, 2012). – Identify operational risks (internal and external) – Set up systems to mitigate them. – Design systems with high security / reliability / scalability. – Design for quick recovery in event of disruption. October 6, 2017 A. Walch, CISDM Annual Conference 7
8. How Well Do We Really Know Blockchain Technology? • Immutability? • Truth? • Trustlessness? • Security and resilience? October 6, 2017 A. Walch, CISDM Annual Conference 8
9. Recommendations • Ask the hard questions. • Insist on precise communication. • Be alert to hype. • Consider the source (and the source’s incentives). • Seek diverse perspectives. • Doubt everything; assume nothing. • Resist peer pressure. October 6, 2017 A. Walch, CISDM Annual Conference 9
10. Angela Walch angelawalch.com Twitter: @angela_walch awalch@stmarytx.edu UCL CENTRE FOR BLOCKCHAIN TECHNOLOGIES I now pronounce you Critical Thinkers. Thank you!