As the adoption of Distributed Ledger Technologies (including blockchain) in financial services matures and it moves from a proof-of-concept technology into production, for example in cross-border payments, trade finance or capital markets, the importance of interoperability and standardisation between use cases and protocols increases.
Given its cross-border nature, it is also an area where international collaboration could be beneficial in developing common international standards and a co-ordinated regulatory response.
“There are many consortia and collaboration projects emerging in the Distributed Ledger space due to the the nature of the technology itself. An Industry Sandbox can support development of this emerging space if it provides a neutral ground for efficient early engagement with regulators as different use cases are identified by industry. As the technology matures, an Industry Sandbox can be a space to test interoperability between protocols as well as support standards development where appropriate. In these instances, the need for an Industry Sandbox is clear – and any solution should be constructed as a global platform.”
– Oliver Bussman, Founder and Managing Partner, Bussman Advisory