Two stories jumped out at us from last week. One is comments from CFTC chairman Heath Tarbert who noted: “The whole idea of DeFi really is, number one, it’s obviously revolutionary, and I think at the end of the day could lead to a massive disintermediation of the financial system and the traditional players. And ultimately, it could potentially even reduce systemic risk in some ways because we don’t have the finance system concentrated in these large globally, systemically important institutions.”
A few thousand miles away, we read another promising report from Thailand, of all places. From Coindesk: “The Bank of Thailand launched the world’s first blockchain-based government savings bond issuance platform using IBM’s blockchain technology. — Within 2 weeks of the launch, the central bank sold more than $1.6 billion worth of savings bonds, as per IBM’s official announcement on October 5, 2020. The use of blockchain technology is said to have reduced the bond issuance time from 15 days to just 2 days.”
There’s talk of “massive disintermediation” & there’s action. This watershed bond issuance in Thailand falls into the latter category. At Inveniam, we see data as the key to unlocking value of private assets…and we know blockchain is the commutative medium for trust.