Sibos 2019: When do digital ecosystems stop performing?
There are both opportunities and setbacks when it comes to creating a truly digital ecosystem, but vendors should be “aware of the challenges on the supply chain” argues Colin Parry, CEO of Issa, at Sibos, as reported by Alara Basul.
In a panel debate on whether digital ecosystems are inclusive and value-driven, moderator Richard Shwartz from Global Custodian describes the traditional ecosystem in financial services industry as “a set of processes in the middle which are supported by the market infrastructure.”
Debating whether digital ecosystems are fit for the digital world, Colin Parry, CEO of Issa, says people “should be aware of the challenges and the effects it has on the value chain”. He adds: “Think of a role, such as a registrar, and understand the functions and how it can be replicated in a digital world.”
Todd McDonald, CEO of R3 LLC, adds: “We’ve learnt quite a bit about the digital infrastructure. There are vendors that have vast networks, who succeed tremendously in their field, but they’re not connected with each other. It’s important to initiate the network from back to front.
“Digital assets have come to the foray again in the last few years. It shows the implications of what digital assets could mean for the security world.”
Panelists debated which digital assets are most likely for consumers to buy and sell, and how quickly we can expect a digital currency to be used commercially. “The most obvious digital assets are equities, then loans and funds,” says Ivo Sauter, chief client officer at Six Payment Services.
“This would be our starting point. Funds have the biggest potential to automate the process as right now there’s a number of steps required. There are a lot of things which can improve.”
McDonald added: “Nobody can predict the real-world use of digital currencies and assets, but my guess would be in the next 2-3 years.”
As well as digital currencies, panelists also discussed Facebook’s strategic Libra offering.
“Libra drove a lot of reaction from the central bank community,” says McDonald. The technology is accepted because there’s a chance that distributed ledger technology (DLT) can help do their job better.
“It gives the central bank community and the regulator a much better view into their ecosystem.”