Cyprus’s Financial Regulator to Introduce Blockchain-Based Payment System

Following thorough research into what blockchains are capable of, financial institutions throughout the world have started offering blockchain-based services to the public. Recent reports indicate that the Cyprus Securities and Exchange Commission (Cysec) is planning to introduce distributed ledger technology to its electronic payment system.

Cysec partners with BARAC

At this time, Cysec is actively exploring the benefits of blockchain technology. As a member of the European Securities and Markets Authority, it’s also participating in various international research projects. To develop and launch its blockchain technology mechanism, the regulator has partnered up with the Blockchain Technology for Algorithmic Regulation and Compliance Association, also known as BARAC.

A recent BARAC press statement noted: 

Blockchain Distributed Ledger Technologies (DLT) are of great interest to the financial industry because they have the potential to improve efficiency, augment security, eliminate duplications, simplify compliance and increase settlement speed, transparency and verifiability while preserving privacy and anonymity.

Thanks to the introduction of blockchain technology for Cysec electronic payments, users will benefit from quicker transaction speeds, lower fees, and more transparent payments.

Apart from preparing to launch its blockchain service to the public to facilitate electronic payments both inside the country and across borders, Cysec also has a positive attitude towards initial coin offerings (ICOs). The regulator’s director, Demetra Kalogirou, stated:

We think it’s a product, a way to raise small funds to finance start-ups. . . . 2018 is the time to put crowdfunding in place. We have given it priority.

If things proceed this way, chances are that Cyprus will become an attractive location for fintech companies throughout the world and an ICO hub as well.

Based on everything outlined above, what do you think about the blockchain system Cyprus is developing? How about its potential to become an ICO hub? Let us know your thoughts in the comments.