The Aussies are a confused lot. There has been a lot of confusion regarding the usage of bitcoin in the country. While bitcoin companies and banks are currently involved in a conflict after leading banks in the country closed the accounts belonging to bitcoin companies without giving any reason, the Australian Securities Exchange is contemplating the use of bitcoin technology for clearing and settlements.
The banks and financial institutions have realized the importance of blockchain technology and how it can help them simplify their processes. Number of international banks have already come together, creating a consortium of sorts to incorporate bitcoin technology into their operations. The news about Australian Securities Exchange (ASX) considering bitcoin technology came after its managing director Elmer Funke Kupper announced that the organization is looking into blockchain technology as a possible replacement for the existing clearing and settlement system.
The announcement comes at the time when ASX is in the process of upgrading its trading systems. This presents itself as a great opportunity for ASX to incorporate latest technologies with longer lifecycle to cut costs in the immediate future and long run respectively. ASX has taken this opportunity to restructure its operations as well. The equities post trade system, which was part of ASX’s core operations is now a separate entity. The equities post trade system will be under the care of Cliff Richards who was previously employed with NAB Trade.
Kupper also mentioned that the institution has already got people looking into blockchain technology to understand the feasibility of incorporation of such technology for its settlements and clearing system. The main aim of ASX is to revamp the whole system to increase end-to-end efficiency of the platform which can help its clients, investors and companies that are part of ASX.
Meanwhile, the Australian banks responsible for closing the bank accounts belonging to bitcoin exchanges operating in Australia are currently under investigation by the Australian Competition and Consumer Commission (ACCC) for signs of any unfair and anti-competitive practices. Closure of these bank accounts came days after a board member of one of the banks mentioned bitcoin to be a threat to the banking sector.
READ MORE: Australian Banks under Investigation by ACCC over Bitcoin Related Account Closures.
The final outcome of these incidents in not clear but going by the current trend, even if bitcoin as a currency doesn’t catch up in this region, Bitcoin technology will surely do.
This news was originally reported by The Sydney Morning Herald