The commissioner of the US Securities and Exchange Commission (SEC) Kara Stein delivered a speech on fintech innovations, sharing her perspective on distributed ledger technology with the Harvard Law School audience.
Commissioner Kara Stein noted the increasing interest to the technology from clearing, settlement, and payment processing companies and its relation to bitcoin digital currency. She said that, not advocating for the adoption or effectiveness of the technology, she cannot but admit the potential it offers. She mentioned its “transparent and open approach” to transactions tracking, which might help regulators be better aware of the “systemic risks” in financial markets, and said that, be it widely accepted, regulators might greatly benefit from the technology.
Still, she believes, there are too many questions yet to be answered:
Her overall opinion is that in relation to the emerging technology regulators should be “in position to lead,” developing its advantages and quickly responding to its potential weaknesses.
Such view is partly shared by the HSBC experts who have recently stated that such regulators as central banks might greatly benefit from the blockchain technology, using it for conducting their monetary policies.
Maria Rudina