Deloitte and a consortium of institutions and trade firms in Ireland have revealed that they are working on a proof of concept for regulatory financial reporting using blockchain.
Despite bitcoin being considered the breakaway technology that could disrupt the global financial system, the blockchain technology that drives it is seen as the real winner in the short term.
The distributed ledger system for the detailed and transparent recording of transactions between multiple parties in the space of a few milliseconds is viewed as a real boon to established banks embracing fintech, as well as the internet of things.
Ireland aims to be at the centre of this blockchain revolution, and with that, the Irish Funds trade group has announced it is working with Deloitte to develop a blockchain proof of concept on regulatory reporting.
The project, which will focus on the Resident Investment Fund Returns regulation, will develop technology to leverage blockchain and smart contracts to create a regulatory platform for both the reporting entity and the regulator.
Irish Funds said this latest proof of concept will test the application of blockchain for enhanced compliance, increasing transparency and determining the cost of actually using this technology.
Ireland ‘actively embracing fintech’
Deloitte is leading the proof of concept from its new EMEA blockchain lab in Dublin that officially opened in the past few weeks, housing 50 developers and designers.
Joining Deloitte and Irish Funds will be a number of asset and fund management firms, including Northern Trust, State Street and Metzler.
Irish Funds CEO Pat Lardner said: “Regulatory reporting is a key obligation for our members and an area of priority focus for the Central Bank of Ireland in 2017.
“This project and the development of the proof of concept with Deloitte will benefit industry, the regulator, and demonstrates how Ireland is actively embracing fintech.”
Investment in blockchain technology and start-ups is increasing significantly by the year, with PwC revealing last November that $1.4bn had been invested in the first few months of 2016.