In the last year, the central Bank of Lithuania has developed its own blockchain solution and sandbox to enable startups to develop concepts rapidly. The LBChain platform supports both Hyperledger Fabric and R3’s Corda enterprise blockchains and was developed by IBM and Tieto, respectively. IT consultancy BearingPoint has an existing regtech solution, Abacus360, which services more than 2,500 companies. It used the LBChain platform to develop a prototype using distributed ledger technology (DLT) for the regulatory reporting of transactions.
Last week, in an online presentation of five LBChain projects, Daniel Münch from BearingPoint highlighted the top level compliance challenges. There’s a current push for digitization at the same time as societies have rising expectations that there’s sufficient oversight that bad behavior will be caught. The combination means an escalating cost of regulation. And the rising costs are resulting in ever smaller marginal benefits.
Despite the investment, the data quality is fairly poor. It’s usually aggregated data, and it’s late. Historically, reporting has taken place every two weeks or monthly.
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