Australian Stock Exchange Cancels $170 Million Blockchain Plans
The blockchain change to the Australian stock market has been canceled indefinitely. The Australian Stock Exchange (ASX), has spent around $170 million (approximately Rs 1,387 crore), in a blockchain revamp following an independent review from Accenture. The results of this consultation revealed “significant challenges” with the design solution that ASX has been implementing. Those solutions do not really meet the requirements of the ASX. ASX aims to use blockchain to power its clearing and settlement system.
ASX aspires to replace its current CHESS system to record stakes and manage payment transactions. The abbreviation for the 25 year old system expands to — Clearing House Electronic Subregister System.
As part of its review, Accenture stated that ASX’s Distributed Ledger Technology (DLT) was too complex. The blockchain the software is up to 60 percent complete.
“ASX’s announcement marks a significant setback towards the replacement of vital national infrastructure for Australia’s cash stock market,” an official statement from the Securities & Investments Commission said. Australia (ASIC) and the Reserve Bank of Australia (RBA).
Philip Lowe, Governor of the Reserve Bank has expressed great disappointment that ASX has not been able to introduce a blockchain twist to its operations.
“ASX’s announcement after years of investment by both ASX and the industry is very disappointing. The ASX needs to prioritize developing a new scheme to provide a secure and reliable clearing infrastructure,” noted Lowe.
ASX was directed to keep the FLAG system running until an effective alternative was designed.
Last November, Jane HumeAustralia’s Minister for Digital Economy, has urged the Australian government to embrace innovation and development around blockchain.
Meanwhile, other countries are also trying to experiment with expanding blockchain use cases to bring immutable transparency to their operations.
In Brazil, law enforcement agencies disclosure a special blockchain network that aims to combat corruption in public spending by effectively tracking them.
In early October, the Firozabad district police unit, India given a new complaints forum built on the Polygon blockchain to allow locals to complain to law enforcement in an immutable format.
Even in the UAE, Abu Dhabi has decided to use blockchain technology to make commercial judicial processes more efficient. This will significantly save time and costs for the parties in enforcing their commercial judgments.