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How the Australia financial sector is influenced by blockchain technology

The Australian financial sector has been heavily influenced by blockchain technology in terms of database construction and better transparency. 

But rumor has it that several Australian exchanges using blockchain technology to their advantage have an unfair upper hand over those who don’t.

This became apparent when representatives from Chi-X requested the Australian Competition and Consumer Commission to investigate the effect of blockchain tech on the trading activities happening within the country.

According to Chi-X’s claims, a rival stock exchange in Australia, called Australian Securities Exchange (ASX) has replaced its CHESS (Clearing House Electronic Subregister System) with a new blockchain platform that could potentially give it an unfair advantage over every other exchange located within Australia.

The blockchain system allows for faster processing and registration of new users with almost full compliance with local regulations, thus allowing ASX to reach trading volumes not reachable by rival companies.

A representative of Chi-X has commented that the clearing processes are already hard as they are with the ASX and the blockchain system will make it much worse.It’s not yet confirmed if this is true, but the evidence provided should be enough to at least regulate such implementations in the future.

This is quite a dodgy subject considering that Chi-X is the biggest rival of ASX, as well as its loyal customer for clearing services.

The adoption of the blockchain in Australia

The financial industry is naturally one of the first industries that comes to mind when you think about blockchain adoption. Here companies such as Ripple has been on the forefront with partnerships with hundreds of banks.

It should although be noted that this is not the first sector that was heavily influenced by blockchain technology. Most of the largest industries such as manufacturing, mining, and farming is also an industry that is considered to be subject to blockchain upgrades in the short-term future.

It is likely that Chi-X is referring to this phenomenon that forced a whole industry to change their ways simply because one of them implemented the innovation and got ahead too much. Considering that Australia is a free market where companies are free to upgrade their services as long as they do not violate regulations, it’s unlikely
for the ACCC to qualify ASX’s decision as something that violates the “antitrust law”.

As for other industries in Australia, they pretty much have the green light for adopting the blockchain technology if it adds more transparency and user accessibility, so why  should the financial sector be an exception in this case?

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