The Weekend Read: Mar 13

1. Regtech (cont)

Thanks to Kathleen B for filling in for me last week. We return once again to the Regtech theme. ESMA Executive Director Verena Ross delivered this speech to the recent Bank of England event, highlighting what ESMA has learned form their recent call for evidence:

We have found that clearing and settlement, collateral management, record of ownership and securities servicing are the areas where the technology is most likely to bring useful changes. It does so through the provision of a unique reference database, instantaneous reconciliation across all participants, immutable shared records and transparent real-time data.

A review of the speech can be found here.

Bank of England continues to explore the idea of central bank digital currency, which includes the research put forward recently by researchers Sarah Meiklejohn and George Danezis at University College London, dubbed “RSCoin”:

RSCoin’s ledger is solely in the hands of the central bank, which would also retain a special encryption key that could be used to control the money supply—for example, to take actions like the quantitative easing programs the Federal Reserve and other central banks put in place after the 2008 financial crisis.

A small collection of third-party organizations would be chosen by the central bank to process new transactions and submit them for inclusion in the central ledger. Meiklejohn says it would make sense for large commercial banks to play that role. RSCoin’s centralized design, she says, means it can handle very large numbers of transactions, unlike Bitcoin.

2. R3 In The News

It was a busy week for R3 news stories. R3’s Charley Cooper attended the above BoE event and a few of his comments are included in this rundown. Charley also features in this WSJ CIO Journal story on the public/private blockchain debate. Our Lab Legend Tim Grant spoke with CoinDesk this week to give some further detail to our recent blockchain trials. R3’s Ian Grigg participated on a panel in London earlier this week, which the IBTimes summarizes in this story. And finally, ICYMI, have a read of Kathleen’s latest R3 POV post entitled Colored Coins: Bitcoin’s Specter Haunts Capital Markets.

3. Odds n Ends

Vitalik Buterin details the pros and cons to the UTXO model in relation to the open source Hyperledger project.

Airbnb potentially exploring a blockchain based reputation system.

I for one welcome our AI overlords: Google DeepMind beats a human at Go!