Regulation and unintended consequences offer new hope for blockchain enthusiasts, showing that regulation doesn’t always stifle innovation.
While blockchain enthusiasts lobby for and against regulation, there are some other regulations being rolled out worldwide which will impact blockchain adoption.
More than fifty countries now have some form of open API’s in place as a result of open finance regulation or directives. Open finance has fast tracked the digitization of financial services and beyond, essentially becoming the natural evolution of finance.
Meanwhile, Bitcoin, the revolution of financial services, will continue to be the northern star for many. But the fast tracked evolution to that will be the connectivity of the world. Open finance promises just that, connecting the dots of data, payments and identity.
When banking and marketplace infrastructures have been truly connected, as the internet originally intended (in effect the API-zation of financial services), we will have the necessary foundations for one robust, secure, transparent and fully functioning global blockchain.
Blockchain is still perceived by many banks, governments and indeed regulators to be disruptive. The reason open finance is perceived as bank-friendly is simple.
It is the solution, not the source to disruption. Banks can avoid disruption through an open financial services ecosystem built for collaboration and innovation. We call that open finance.
While open finance requires a complete mindset shift across the banking community and beyond, it is clearly showing results.
As a movement, it is gathering momentum and being mandated by regulators worldwide.
That feeling of despair and disillusionment I once experienced in the world of blockchain is no longer there.
In fact, the mindset shift to openness and the swift adoption of an API banking approach will no doubt result in a very hospitable environment for blockchain solutions going forward.
Forbes / ABC Flash Point News 2020.