Distributed Ledger Technology and Blockchain
The financial sector is currently undergoing a major transformation, brought about by the rapid development and spread of new technologies. The confluence of ‘finance’ and ‘technology’ is often referred to as ‘Fintech’, typically describing compani...
| Main Authors: | , , |
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| Format: | Working Paper |
| Language: | English |
| Published: |
World Bank, Washington, DC
2017
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/134831513333483951/FinTech-note http://hdl.handle.net/10986/29053 |
| Summary: | The financial sector is currently
undergoing a major transformation, brought about by the
rapid development and spread of new technologies. The
confluence of ‘finance’ and ‘technology’ is often referred
to as ‘Fintech’, typically describing companies or
innovations that employ new technologies to improve or
innovate financial services. ‘Fintech’ developments are seen
across all areas of the financial sector, including payments
and financial infrastructures, consumer and SMElending,
insurance, investment management, and venture financing.
This note on distributed ledger technology (DLT) and
blockchains is part of a series of short notes that explore
new trends and developments in Fintech and analyze their
potential relevance for WBG activities. Forthcoming notes in
this series will cover marketplace lending, ‘InsureTech’,
and other topics. This note outlines the mechanisms,
origins, and key characteristics of DLT; the difference
between ‘public’ and ‘private’ DLT; the technology’s main
advantages, challenges, and risks; relevant examples of DLT
applications (with a focus on financial sector
applications); and a brief overview of activities by
governments, multilateral organization, and other
stakeholders in this space. Finally, this note proposes next
steps for the World Bank to study and evaluate areas where
DLT could potentially be integrated into World Bank
financial sector operations. |
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