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Evolving Capital Markets Part I: Exploring Blockchain-Powered Market Infrastructures for Traditional Exchanges

SSRN

 

Since the founding of the Amsterdamsche Beurs, the world’s first stock exchange, in 1602, asset exchanges have evolved into the global engine for capital markets activity and growth – providing a common venue to match buyers and sellers and achieve robust price discovery of assets. With the advent of bitcoin, the world’s first blockchain-powered network, in 2009, blockchain technology has experienced a meteoric rise in significance among capital markets participants. Widely regarded as the next evolutionary step for capital markets, blockchain-powered capital markets systems introduce novel and notable opportunities for asset exchanges to increase the effectiveness and efficiency of the capital market(s) they operate within. This paper will explore these opportunities, as well as the challenges associated with them, in an introductory manner.

https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4661389

This paper proposes how bitcoin-backed fiduciary currency could be adopted by Central Banks and the various consideration points therein. The paper draws comparisons from the proposed Bitcoin Standard to the Classical Gold Standard once implemented by most major modern economies throughout the late 19 and early 20 century.

https://www.researchgate.net/publication/344877126_The_Bitcoin_Standard_Central_Banking's_Next_Frontier

NYC Coin: Municipal Finance's Next Frontier

ResearchGate

 

This paper will explore the financial and technical feasibility corresponding to a New York City coin (NYC Coin). NYC Coin is a proposed asset to be issued by the New York City government, offering the public an opportunity to invest in the world's greatest city.

https://www.researchgate.net/publication/355924522_NYC_Coin_Municipal_Finance%27s_Next_Frontier

The global economy’s rapid digitization has made evident the many issues and opportunities that exist with financial system modernization. A key driving technology for this modernization has been distributed ledger technology (DLT). This paper will outline how central banks and governments around the world can implement minimum viable products with regards to value adding initiatives built for wide reaching financial and capital market systems utilization with distributed ledger technology. The first section in the paper will be introductory in nature and provide information on the different use cases available and compelling with regards to a focus on the financial sector. The second section in the paper will provide additional details and frameworks for implementing the most scalable and widely relevant use cases. There will be an emphasis on emerging market economies throughout the paper.

https://www.researchgate.net/publication/344601101_An_Exploration_Into_Distributed_Ledger_Technology_DLT

The document will explore the expected impact to financial markets from central bank backed real time gross settlement (RTGS) for securities and payments transactions.

https://www.researchgate.net/publication/349620522_Payments_Securities_Real_Time_Gross_Settlement_RTGS

The document will explore known and theoretical solutions for offline digital currency payments, in addition to their expected financial system impacts.

https://www.researchgate.net/publication/349620537_Offline_Digital_Currency_Payments

The document will explore several security and privacy considerations for a central bank digital currency (CBDC) deployment, outlining key issues related to how nodes communicate with each other and how each node operates individually.

https://www.researchgate.net/publication/349620537_Offline_Digital_Currency_Payments

Overall, the recent Bank of England paper displays peer-leading expertise on central bank digital currency. I personally applaud the Bank of England for its serious and literal commitment to exploring CBDC as a concept and its potential added value to the UK economy. Below are Satoshi Capital Advisors' general comments on the paper in addition to responses to the questions listed in Chapter 7.

https://www.researchgate.net/publication/349621038_Bank_of_England_Central_Bank_Digital_Currency_CBDC_Paper_Response

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