More banks, financial institutions exploring blockchain technology

KUALA LUMPUR: More banks and financial institutions are exploring blockchain technology in their payments and cross-border transfers, said panelists at Maybank Kim Eng’s “CryptoOpportunities and Hurdles” webinar yesterday.

Maybank Kim Eng Research said Asean regulators had addressed the adoption of blockchain as the technology was rapidly becoming mainstream and expanding beyond the cryptocurrency market.

Ethikom Consultancy founder and chief executive officer Nizam Ismail said it had clearly catalysed regulatory developments as Asean regulators were actively addressing its adoption in financial services and for corporate fundraising.

“The underlying policy consideration has ranged from being focused on investor protection to being facilitative.

“For example, Malaysia has taken the stance of incorporating cryptocurrency regulations into their securities framework and has introduced licensing for cryptocurrency exchanges.”

Maybank Banking Bhd group chief risk officer Gilbert Kohnke said it was vital to work closely with regulators to fully understand and factor in the use cases and risks before rolling out any crypto-related product or service.

Blockchain Association cochairman, Chia Hock Lai said the advent of digital banks was expected to accelerate the adoption of blockchain applications beyond cryptocurrencies over the medium to long run, such as nonfungible tokens, decentralised finance and the tokenisation of real-world assets.

Algorithma managing director Sankalp Shangari opined that the use of blockchain technology would also continue to grow in products other than cryptocurrency.