CFTS Head Advices Regulators To Apply Blockchain
Christopher Giancarlo, the head of the US Commodity Futures Trading Commission (CFTC), suggested during the Washington DC Blockchain conference that if distributed ledger technology existed and were used during the 2008 global economic collapse, it would significantly change the regulators' response, Cointelegraph reports.
The CFTC chairman said that at some point regulators lost control over the crisis due to the lack of opportunities to monitor the state of the market in real time, except for phone calls. They had to collect pieces of information to form vast personal business portfolios. Therefore, distributed ledger technology could provide the necessary control over the market participants which were under regulation.
According to Giancarlo, if decentralized systems were an information base for operations with derivatives on Wall Street a decade ago, the intervention of regulators would be operational, thoughtful, and well-informed. He noted that blockchain, combined with innovative cognitive computing technologies, would give regulatory authorities the opportunity to identify alarming signals in the market to prevent the risks of bankruptcy or anomalies in trading activity.
As previously reported, the work of an analytical center for the study of decentralized economics and financial systems based on blockchain started in London.