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Blockchain & DLT Impact on Finance:
Opportunities & Challenges
Caterina Rindi
Caterina Rindi - RindiConsulting.com
•Elementary Education
•p2p & Collaborative Economy
•Bitcoin Startup
•CSR & Impact
Blockchain & Distributed Ledger Technology (DLT)
• consensus-driven, p2p-shared digital database & ledger
• replicated among multiple sites, countries, institutions
• global
• permissioned/private or permissionless/public
• blockchain is one kind of DLT
• many blockchains – e.g. Bitcoin, Ethereum, EOS, Ripple
Some Problems to Solve in Financial Systems
• fees and costs of intermediaries
• friction in movement of money
• redundant and onerous paperwork
• fraud and crime
• regulatory costs and burden
• inefficiency of centralized systems
• alternative investing & financing option
• peer-to-peer ICO’s = global distributed shares
• stock exchanges exploring blockchain to clear & settle trades
• Australia, Santiago(Chile), Korea, London (UK), Tallinn
(Estonia), Tokyo, US Nasdaq, Scotland
• global remittance network (Ripple)
• micropayments
Some examples how new tools are being used
Other corresponding applications being developed
• supply chain & inventory management
• trading value – exchanges
• insurance & risk management
• identity & reputation
• audit & tax functions
• medical records • IoT
• patents & royalties
Opportunities
• increased efficiencies – cost and speed
• decrease fraud
• removal of excess intermediaries
• direct & efficient pipeline to investors
• large volume of small investments
• access to global markets
• immutable audit trails
• improved privacy
Challenges
• regulatory uncertainty
• legal evolution – smart contracts, language
• standardization needed in many industries
• digitization of records and data
• immature businesses/products & development
• interoperability of ledgers/networks
China-specific activities
• bitcoin mining leader b/c low cost energy, labor, manufacturing
• PBoC positive declarations (2018-03)
• Pres. Xi Jinping ”new generation of breakthrough tech” (2018-06)
• strong software developer community (Eth conf)
• ICO’s banned (2017)
• cryptocurrency exchanges banned (2017)
China-specific activities - cont.
• 2018-01 blockchain-related project financing = RMB 681 M
• Example startups:
• Ziggurat (Zhigui)
• Energy Blockchain Labs – Beijing
• NEO; QTUM blockchains
• Active projects by: Baidu, Alibaba, Tencent
• Leading cities: Beijing, Shanghai, Hangzhou (Industry Park 2018-05)
Caterina@RindiConsulting.com
https://RindiConsulting.com
Thank You!

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Rindi - Blockchain DLT FinTech Impact China

  • 1.
  • 2. Blockchain & DLT Impact on Finance: Opportunities & Challenges Caterina Rindi
  • 3. Caterina Rindi - RindiConsulting.com •Elementary Education •p2p & Collaborative Economy •Bitcoin Startup •CSR & Impact
  • 4.
  • 5. Blockchain & Distributed Ledger Technology (DLT) • consensus-driven, p2p-shared digital database & ledger • replicated among multiple sites, countries, institutions • global • permissioned/private or permissionless/public • blockchain is one kind of DLT • many blockchains – e.g. Bitcoin, Ethereum, EOS, Ripple
  • 6. Some Problems to Solve in Financial Systems • fees and costs of intermediaries • friction in movement of money • redundant and onerous paperwork • fraud and crime • regulatory costs and burden • inefficiency of centralized systems
  • 7. • alternative investing & financing option • peer-to-peer ICO’s = global distributed shares • stock exchanges exploring blockchain to clear & settle trades • Australia, Santiago(Chile), Korea, London (UK), Tallinn (Estonia), Tokyo, US Nasdaq, Scotland • global remittance network (Ripple) • micropayments Some examples how new tools are being used
  • 8. Other corresponding applications being developed • supply chain & inventory management • trading value – exchanges • insurance & risk management • identity & reputation • audit & tax functions • medical records • IoT • patents & royalties
  • 9. Opportunities • increased efficiencies – cost and speed • decrease fraud • removal of excess intermediaries • direct & efficient pipeline to investors • large volume of small investments • access to global markets • immutable audit trails • improved privacy
  • 10. Challenges • regulatory uncertainty • legal evolution – smart contracts, language • standardization needed in many industries • digitization of records and data • immature businesses/products & development • interoperability of ledgers/networks
  • 11. China-specific activities • bitcoin mining leader b/c low cost energy, labor, manufacturing • PBoC positive declarations (2018-03) • Pres. Xi Jinping ”new generation of breakthrough tech” (2018-06) • strong software developer community (Eth conf) • ICO’s banned (2017) • cryptocurrency exchanges banned (2017)
  • 12. China-specific activities - cont. • 2018-01 blockchain-related project financing = RMB 681 M • Example startups: • Ziggurat (Zhigui) • Energy Blockchain Labs – Beijing • NEO; QTUM blockchains • Active projects by: Baidu, Alibaba, Tencent • Leading cities: Beijing, Shanghai, Hangzhou (Industry Park 2018-05)