How Australia is Adopting Cryptocurrency
Australia’s largest stock exchange’s leadership has put out statement’s showing that they are bullish about blockchain technology and its ability to replace the current post-trade settlement solution known as CHESS.
The Australian Security Exchange (ASX) is currently being dubbed as one of the first exchanges to attempt to adopt blockchain technology. The current system known as Clearing House Electronic Subregister System or CHESS seems as though it could be replaced by new blockchain technology. The new tech has been called a “once in a 20-year opportunity an executive at the exchange.
As of January 2016, the ASX sunk $14.9 million to receive a 5% equity stake in a blockchain startup out of New York known as Digital Asset. The ASX stated that their investment would hopefully “significantly simplify and speed-up post-trade processing.” The technology has undergone a solid trial to see how it compares to CHESS over the course of the last twenty months.
Obviously there have been a few hurdles, but most of the news seems to be positive. As of now, it seems likely that the ASX could switch over to blockchain technology within a short amount of time. The benefits to settle payments after trading in an easier fashion, seems to blow away the current system. It is not likely that the exchange will completely throw out CHESS, but it is likely that the two system’s may work side by side.
Chairman of ASX, Rick Holliday-Smith stated that “we are increasingly confident that this technology will simplify how our marketplace works and should unlock a new era of efficiency and innovation.”
Blockchain technology is not something that is new, but it does appear to be infiltrating many part of the world economy. With blockchain technology’s popularity rising, it doesn’t appear that anything at the current time is standing in its way.