Realistic perspectives on DLT Distributed Ledger Technology in the financial field

The new digital era brings significant changes to the financial world. The role of intermediaries has been radically altered by the emergence of decentralized technologies such as DLT and the blockchain, which are now revolutionizing every aspect of our society. Financial intermediaries are no longer indispensable as they were before digitization. Now that digital technologies have spread throughout the world's economy, financial institutions have taken another step backwards and their importance is diminishing.

We must also consider the national and international regulatory context in which our society would like to operate, dominated by directives, bills, recommendations and public consultations which, although not yet defined and translated into binding laws and regulations, mark the furrow of the imminent regulation based on the precautionary protection of the stability of the financial system, that is still the prerogative of banks and supervised financial intermediaries.

The use of DLT Distributed Ledger Technology in the financial sector creates new decentralized models, aiming at expanding the access to basic financial services. But we should keep in mind that financial regulation is a matter of national sovereignty and that the European Union has accepted the principle of decentralization of regulation across Member States. Each country can therefore enact its own legal frameworks to be applied locally by national central banks and regulators.

Milano, 1. 3.2023

Giovanni Bonomo #RichGeneration