| | NOVEMBER 202019CIOReviewCXO INSIGHTSBy Andreas Beller, Senior Vice President, StoneXDeutsche Bundes bank has been smoothing out the waves since the outbreak of the corona crisis: Payment transactions and settlement systems are stable. Not in the sense of "rigid"; rather, the industry is (crisis) safe. After all, international payment traffic in particular is by no means deadlocked. It wasn`t before Corona and it will not be afterwards. Distributed ledger technology (DLT) has been noticeably turning the financial sector upside down for some years now, even though the potential for global financial transactions has remained largely untapped to date. According to Accenture, around 25 trillion US dollars are transacted across borders every year. These sums of money would benefit from increased security and integrity - also and especially in times of crisis. But can blockchain technology solve these problems and be the key to greater transparency and efficiency? Or do completely different challenges arise here?Over the years, distributed ledger technology (DLT) has increasingly developed into an important field of experimentation for financial market players and central banks, among others. Distributed ledgers are basically distributed account management systems in which data is shared, replicated and synchronized across several locations. The cryptographic procedure enables a nearly forgery-proof mapping of transactions. If these are represented in interconnected blocks with the help of a proofofwork procedure, one speaks of a blockchain. This technology offers various potential advantages through shared data storage, which can facilitate coordination processes in complex value chains based on the division of labor. Handle complex processes automaticallyMany users evaluate the DLT as useful for triggering changes in the applied industries. A pioneering role is played here by the financial sector, which envisages the substitution of intermediaries or the creation of new, more efficient processes in areas such as payment transactions and securities settlement. In theory, distributed ledger technology could eliminate the need for special systems operated by intermediaries. BLOCK CHAIN APPLICATIONS IN INTERNATIONAL PAYMENTS SECTOR DURING THE CRISISAndreas Beller
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