CFTC Chair: ‘A Large Part’ of Financial System Could End Up in Blockchain Format

[cryptomaniac_xxx]

CFTC Chair: ‘A Large Part’ of Financial System Could End Up in Blockchain Format

“Our entire financial and economic system outside the current system, the non-crypto system basically evolved since, one could argue, the Renaissance in Italy,” he said. “Whereas what people are doing in the digital asset space is effectively building within a decade or less an entire economic system based on human incentives and trust … I just find that fascinating.”

“My view is that to be a successful CFTC chairman, meaning regulating the derivatives market, you have to have [a] keen understanding of the underlying market,” he said. “And so I’ve tried to learn as much as I can about the various agricultural sectors. I’ve gone out into fields and … gone to grain elevators, I’ve gone to a feedlot to learn about cattle and wheat. I’m learning about oil but I’m also learning a lot about crypto and in many ways, because it’s so revolutionary and so cutting edge, I’m spending a lot of time just learning how it all works in the ecosystem.”

https://www.coindesk.com/cftc-chair-a-large-part-of-financial-system-could-end-up-in-blockchain-format

I do agree with what he says he, finance and economic market are really evolving in the last 2-3 years. And this blockchain technology will be at the front of every financial instruments and systems and it's good to hear that the CFTC chairman is open minded or even willing to accept what is going around in the system today.

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[minairia3]

I do agree with what he says he, finance and economic market are really evolving in the last 2-3 years. And this blockchain technology will be at the front of every financial instruments and systems and it's good to hear that the CFTC chairman is open minded or even willing to accept what is going around in the system today.

Changes in the market or even economic scale are triggered by a lot of factors. Let say the blockchain technology renouncing their potential to be an instrument to all financial system. In fact we could see how many banks, financial companies and businesses are already taking further step to join the digital blockchain era.

Like what he said, cryptocurrency is a cutting edge which most of us did not noticed before but now as it grow and expand maybe we can see how simple idea changes everything. I am more bullish now that crypto adoption would be seen on many grounds sooner or later.

[seoincorporation]

More than they could, i would say they will. And that's just because blockchain is more efficient than the current system they use to make transactions or to save money, What isn't clear yet is if they will use their own blockchains or if they will run under smart contracts.

Only time will say what course take those projects.

[Wenbing]

CFTC Chair: ‘A Large Part’ of Financial System Could End Up in Blockchain Format

“Our entire financial and economic system outside the current system, the non-crypto system basically evolved since, one could argue, the Renaissance in Italy,” he said. “Whereas what people are doing in the digital asset space is effectively building within a decade or less an entire economic system based on human incentives and trust … I just find that fascinating.”

“My view is that to be a successful CFTC chairman, meaning regulating the derivatives market, you have to have [a] keen understanding of the underlying market,” he said. “And so I’ve tried to learn as much as I can about the various agricultural sectors. I’ve gone out into fields and … gone to grain elevators, I’ve gone to a feedlot to learn about cattle and wheat. I’m learning about oil but I’m also learning a lot about crypto and in many ways, because it’s so revolutionary and so cutting edge, I’m spending a lot of time just learning how it all works in the ecosystem.”

https://www.coindesk.com/cftc-chair-a-large-part-of-financial-system-could-end-up-in-blockchain-format

I do agree with what he says he, finance and economic market are really evolving in the last 2-3 years. And this blockchain technology will be at the front of every financial instruments and systems and it's good to hear that the CFTC chairman is open minded or even willing to accept what is going around in the system today.

Im also fascinated with the development of crypto and blockchin which is the underlying technology.  i believe that blockcahian is a technology that most financial institution will love to embrace as it makes transaction very transparent and un-alterabale. Few days ago, i read that PayPal has started working on its own crypto currency, that is to show that crypto and blockchian will really change things in the financial space.

[TravelMug]

More than they could, i would say they will. And that's just because blockchain is more efficient than the current system they use to make transactions or to save money, What isn't clear yet is if they will use their own blockchains or if they will run under smart contracts.

I bet they will make their own closed permissioned blockchain, where the user won't get any kinds of benefit.

This one, crypto enthusiast forgot that there are two sets of blockchain:

Permissioned and Permissionless Blockchains

The basic distinction of these is clear from the terms itself. A permissioned blockchain needs prior approval before using whereas a permissionless blockchain lets anyone participate in the system. Though the two systems might sound similar, they cannot be used for the same things. People might not be keen on using a permissioned cryptocurrency as one of the major drawbacks of crypto is that no one has control over how it works. For example, a company like Maersk, that uses blockchain technology to track its shipping logistics, will not want to store its confidential information onto a permissionless blockchain.

https://www.blockchain-council.org/blockchain/permissioned-and-permissionless-blockchains-a-comprehensive-guide/

So most likely if the financial system are going to used blockchain here, it will be permissioned blockchain, yes it is an added layer of security, but it can be controlled by only few individuals and this one will be the likely scenario, "blockchain technology" is really becoming a buzz word in any other sector but forget to understand the difference between the two.

[squatter]

More than they could, i would say they will. And that's just because blockchain is more efficient than the current system they use to make transactions or to save money, What isn't clear yet is if they will use their own blockchains or if they will run under smart contracts.

I bet they will make their own closed permissioned blockchain, where the user won't get any kinds of benefit.

This was the context. He was talking about decentralized finance:

Tarbert said he is fascinated by decentralized finance (DeFi).

“When you think about the idea that at some point a large part of our financial system could very well exist in blockchain format, that’s also revolutionary,” he said.

Years after the idea emerged, I am still baffled by the idea of permissioned blockchains. It's a gimmick. I don't see it lasting the test of time as a model.

Most of the emerging projects in decentralized finance won't last the test of time, either. But unlike permissioned blockchains, I think there are potentially useful applications across a variety of sectors -- asset trading, asset title transfer and liquidation, secured lending, etc. I just don't know when we'll actually see mature, safe platforms in terms of contract reliability. While I like the global nature of decentralized finance, I also wonder about the legal implications when you start getting into things like securities and tokenization of assets, and what happens when things go awry, especially with things like asset liquidation.

[pooya87]

it sounds like another case of someone using the buzzword "blockchain" without understanding it.

the fact is that blockchain is the least efficient way of doing things that financial system demands but it works well when it is used in a decentralized system like bitcoin. otherwise when we are talking about centralization and private blockchains it stops making sense to even use blockchain in first place. there simply is not reason for it and the lack of efficiency doesn't have any justification anymore.

take a simple look up for instance, it is extremely hard and time consuming. the blockchain either has to be indexed which means another massive storage requirement for the index or it has to be "re-scanned" from the beginning.
in comparison a centralized database that is currently used is simply using an "account-balance" state and lookup is trivial. same with updating the database whereas updating blockchain is much harder and is both time consuming and requires "work".

[mk4]

Wait til they realize that using a blockchain for something centralized makes zero sense at all and is pretty much counter-intuitive. They might as well just use a typical SQL database; at least they won't be needing to deal with mempool congestion and such.

[davis196]

More than they could, i would say they will. And that's just because blockchain is more efficient than the current system they use to make transactions or to save money, What isn't clear yet is if they will use their own blockchains or if they will run under smart contracts.

Only time will say what course take those projects.

Efficient?What do you mean by efficient?The blockchain can handle way less transactions than the centralized systems.
I'm sick and tired of all the predictions stating that,in X amount of years,the entire financial system will be blockchain based.I mean yeah,why not,this might happen but let's just not be so confident about it,because there's a possibility that it won't happen.

[Baofeng]

it sounds like another case of someone using the buzzword "blockchain" without understanding it.

Exactly, it's the current buzzword, specially that it was just added on the dictionary, Cryptocurrency, ICO and Blockchain Officially Added to the Dictionary

[.. snip ..]

So it doesn't really make sense for them to jump into the whole blockchain craze, spend hundreds of thousands of dollars to replace their legacy system and think that they will gain a lot from moving into blockchain technology without understanding layers and layers of security protocol. Better for them to used traditional centralised relational databases.

[AakZaki]

Blockchain is a future technology that will be very promising to be applied in all fields, especially in the economic field. Blockchain is able to facilitate the recording of identity, health data, financial data, valuable assets and many others. Blockchain will also speed up audit activities. the best part is that the blockchain can send any data without relying on a single server.

If the world financial system implements blockchain technology, every transaction can be easily traced transparently and this will reduce corruption. The digital blockchain ecosystem must also be studied and matched with each sector to make it more perfect.

[XEsseKasper]

I have no doubts that Blockchain is technology of the future. I also have no doubt that almost all fiat currencies in the near future (i.e. in 10 years) will be in digital format. Still, we need to pay attention that digital fiat currency is not same as crypto currencies.

[(o)(o)ilikeboobs(o)(o)]

CFTC Chair: ‘A Large Part’ of Financial System Could End Up in Blockchain Format

“Our entire financial and economic system outside the current system, the non-crypto system basically evolved since, one could argue, the Renaissance in Italy,” he said. “Whereas what people are doing in the digital asset space is effectively building within a decade or less an entire economic system based on human incentives and trust … I just find that fascinating.”

“My view is that to be a successful CFTC chairman, meaning regulating the derivatives market, you have to have [a] keen understanding of the underlying market,” he said. “And so I’ve tried to learn as much as I can about the various agricultural sectors. I’ve gone out into fields and … gone to grain elevators, I’ve gone to a feedlot to learn about cattle and wheat. I’m learning about oil but I’m also learning a lot about crypto and in many ways, because it’s so revolutionary and so cutting edge, I’m spending a lot of time just learning how it all works in the ecosystem.”

https://www.coindesk.com/cftc-chair-a-large-part-of-financial-system-could-end-up-in-blockchain-format

I do agree with what he says he, finance and economic market are really evolving in the last 2-3 years. And this blockchain technology will be at the front of every financial instruments and systems and it's good to hear that the CFTC chairman is open minded or even willing to accept what is going around in the system today.

Blockchain can be applied to all areas of life and it makes it easier to manage than traditional economies. In the future companies will pay more attention to blockchain and develop their blockchain. Blockchain is currently the trend and will be the future of the world economy. I think the above statement is reasonable.

[Wind_FURY]

I believe they don't understand what a blockchain is? Do they want decentralization, which causes censorship-resistance, or do they want a federated database, which THEY can control who appends/changes the data?

They don't need a "blockchain", but I believe they don't know they don't need it yet.