One of Australia’s most popular stock exchanges, The Australian Securities Exchange (ASX) has now declared that blockchain will be banned. Previously, the exchange had plans to build its software using blockchain technology but this decision stops those plans.
In November 2022, the exchange paused the rebuild of its trading software which was based on the concept of decentralised computing. This decision has left investors in Australia frustrated. The exchange said that they have other plans to rebuild the 30 years old trading software but they would never consider the use of blockchain or DLT (Distributed Ledger Technology).
Also read: Singapore-US Trial Proves Blockchain’s Viability for Cross-Border Payments
Conventional Methods Preferred Over Blockchain
Tim Whitely, the project director said that the exchange is considering other conventional methods that would give them favourable business outcomes. When ASX decided to implement blockchain as its core technology for trading, it was the first-ever stock exchange in the world that would bring in this feature. The technology for the project was provided by Digital Asset which is a New York-based company. ASX also bought a small chunk of stakes in Digital Assets in 2016.
According to Whitely, the market participants are considering a less risky software and they are not much happy with the sudden change in the trading software. He said that the exchange has taken their feedback seriously. All these factors would be considered while planning for the creation of the new software.
In a meeting, Whitely also said that the exchange was all geared up to implement a new strategy by year-end and the exchange had sent proposals to software vendors who responded positively to this matter. Australian exchange was all set to be an example to the world if they had adopted blockchain technology. Time will tell us whether they made the correct decision or a blunder.