Crypto Frontline

The Australian Securities Exchange (ASX) had planned a blockchain implementation for its current system from processing equity transactions, a.k.a. Clearing House Electronic Subregister System (CHESS), but the latest COVID-19 outbreak seems to have taken authorities by surprise. According to an announcement dated March 25^th, 2020, the ASX is forced to delay the transition to the blockchain.

Many ramifications of COVID-19

Up until now, Australia had been one of the countries that led the path towards cryptocurrency regulation, but the latest COVID-19 outbreak continues to have broad influences on how government institutions function. Since the end of 2017, ASX had been developing a blockchain infrastructure, that could be able to replace its current system for processing equity transactions.

A series of delays had postponed the actual implementation, but according to the latest information from the Securities Exchange, such action later this year is now unclear:

In recent days, ASX has received further feedback about the ability of users to focus on the CHESS replacement project during this period of heightened volatility and activity levels. With many firms in the industry, including ASX, operating with a large proportion of staff working from home, the ability to participate in coordinated readiness activities later this year is unclear.

Despite that, the country continues to prove openness towards digital assets. Not too long ago we’ve seen how an Australian judge labeled cryptocurrencies as a legitimate investment. But now, ASX had postponed the implementation timetable until June, and any new moves will be highly dependent on how the COVID-19 outbreak will continue to evolve.

The feedback received over the past years had been mixed, according to Cointelegraph, with some users wanting an immediate implementation, while others demanding an extension in order to have more preparation time.

Developed in partnership with the US-based Digital Asset Holdings, the first code of the replacement app development tool had been released at the beginning of 2019 and since then a broad debate had started of its effectiveness and potential unfair advantages that ASX could benefit from.

Thankfully, blockchain solutions continue to be attractive and have a high chance of replacing some of the software we currently use. Unfortunately, the world is likely to face an economic downturn and during such times, research and developments had to suffer due to lack of funding. Longer-term, though, a lot of potential expects to be unleashed with the blockchain technology, improving productivity and how various sectors of the economy operate.