The BSV blockchain could act as a platform for a Financial Market Infrastructure provider, says Nathan Cropper, Business Development lead at TAAL Distributed Information Technologies.
Financial market infrastructures (FMIs) allow for the clearing, settlement, and recording of financial transactions. They enable millions of transactions to take place each day. In the UK, the Bank of England is responsible for supervising FMIs as they are seen as a vital part of the financial system and its broader economy.
The UK’s financial regulators have now recognised a blockchain-based FMI for the first time, potentially opening the way for protocols such as the BSV blockchain to be used as a platform for FMIs going forward, said Cropper.
He added that a FMI must adhere to a set of principles and standards all of which, are largely aligned with the BSV blockchain.
‘As we start to move forwards and continue the separation of what ‘crypto’ is doing and what you can actually use Bitcoin for, people will realise they can meet the standards which have already been set, and be more productive with their data by using BSV.
‘We already have the research showing that settlement finality can be achieved in line with the standards and expectations set (by regulators). The space is now open for whoever wants to be competitive in the FMI sector as it has historically been dominated by the likes of Swift, Mastercard and Visa.’
A perfect fit for BSV blockchain
Cropper said the BSV blockchain is the perfect platform to host FMIs due to its low energy requirements and ability to process thousands of transactions a second.
‘The key thing here is that we want to make people aware that while it’s great that a block-chain based FMI has been recognised by regulators for the first time, you can achieve even more efficiency with BSV.
‘The BSV technology is capable of enabling anyone who wants to build an FMI – in any category. There are obviously things you will have to consider such as location, which structures you need in your business etc.’
Cropper added that TAAL has the technology and expertise to partner with developers who are interested in working in this space.
‘It’s about time that we start looking at Bitcoin a bit differently as opposed to just a speculative asset. We can look at it from the position of technology.’ There are many industries with regulatory challenges that technology aims to solve and. Bitcoin can provide more efficiency and increase productivity – not just in the finance industry.’
TAAL at the forefront
Cropper reiterated that TAAL is open for business and is working to remove as much friction as possible to make the BSV blockchain accessible to businesses. He noted that FMI is one of those areas where it is looking to develop further.
He highlighted the recent launch of the TAAL client which removes the need to own Bitcoin to write transactions to the blockchain. This allows businesses to continue transacting and working with traditional Fiat currencies.
TAAL is a publicly traded, Canada-based infrastructure company that focuses on building a microtransaction economy on the BSV network by scaling transaction throughput and data capacity.
Developers interested in learning more about their work and collaborating on FMIs can read more here. You can read more about Financial market infrastructures and how they are regulated in the United Kingdom here.