Nine Cores of Blockchain Round-Table Hosted by Japan Financial Services Agency
The discussion on innovation in the financial area is put on agenda in G20 summit this year, so as the organizer of G20 this year, Japan held BCRT (Blockchain Round-Table) to discuss the blockchain and cryptocurrency affairs., recently.
JFSA (Japan Financial Services Agency)believed that decentralization technology plays an active role in a well-deployed environment, it organizes BCRT as part of multilateral joint research projects annually since 2017.
In order to effectively promote innovation in the financial sector, the meeting was closed and only experts from regulatory authorities, related industry and academy were invited to attend. In order to ensure that experts can speak freely, this meeting takes the form of a closed forum. After the meeting, the JFSA selected the contents approved by all participants to share.
The round- table lasted two days. The first day focuses on the main topics of the G20 Summit, as well as “Multi-stakeholder Governance of Blockchain-based Financial Ecosystem”, “Privacy and Traceability of Blockchain-based Financial Transactions”, “Recent Development of the Token Economy” and “Blockchain Jurisdiction Initiative”.The topics on the second day included: “regulatory environment and current efforts”, “technological development”, “potential applications of financial services based on blockchain”, “multi-stakeholder simulation-freedom or control?”
Here are nine cores of Blockchain Round-Table:
1.How to cooperate effectively so that all stakeholders (including regulators, engineering and technology circles, enterprises, users, investors and academic cycle) can enjoy the benefits, and at the same time effectively reduce the risks brought by the decentralized financial system of blockchain.
2.How can regulators response quickly to the emerging technology? It was clearly pointed out that regulators might be in a potential dilemma between the procrastination principle and the technical liability principle .
3.In order to fully exploit the potential of the blockchain and solve the related risks, all stakeholders in the ecosystem need to fully share or provide the social benefits and values. Only in this way can all parties deepen mutual understanding and promote cooperation.
4.Participants also discussed the privacy and traceability of financial transactions on the public chain in view of the risks that block chains may bring to decentralized financial systems. In conclusion, the Blockchain Engineering and Technology Community is triying to develop anonymity technology, and government departments may need have insight into the impact of Blockchain technology on financial activities.
5.Participants pointed out in that privacy enhancement technologies may make people vulnerable to financial crimes such as money laundering, but the technology can enhance alternative and scalability.
6.Engineers and technicians can also provide technical solutions to regulators. In this process, both engineers and regulators should conduct appropriate bilateral monitoring and observation.
7.Financial institutions can only use auditable blockchain supervised by finance regulators.
8.The engineers and technicians shared the latest technological developments and related progress, such as the latest technological developments related to the scalability, security, confidentiality and substitution of public chains (such as Bitcoin).
9.The latest developments and challenges of block chain ecosystems, such as Token economy, trade finance, central bank digital currency (CBDC) and encrypted asset trading markets. were under discussion.