It seems as though attempts to bring blockchain to the Asia-Pacific financial services industry are gradually gaining momentum.
Indonesia’s leading futures and derivatives group, Jakarta Futures Exchange (JFX) is joining forces with Australia’s Kinesis Money and Allocated Bullion Exchange (ABX) to develop a blockchain powered exchange in Indonesia.
The primary goal of the partnership is to create an alternative option for current financial offerings. The blockchain-based approach would come with additional benefits such as being easier, quicker and safer.
“It’s increasingly become clear to us that the benefits of distributed ledger technology or ‘blockchain’ will unlock tremendous amounts of value for Indonesia and the Indonesian people,” JFX President Stephanus Paulus Lumintang said in a statement.
Regulations on blockchain in Indonesia are currently in an ongoing phase, something Lumintang describes as daunting but crucial.
He is sure that the Jakarta Futures Exchange will be able to be a blockchain exchange business that fulfils any regulatory requirements that may come in its way.
“Our future partnership with Kinesis and ABX will enable us to not only tap into these advantages but to create a secure and transparent blockchain network that provides a credible alternative to existing systems of exchange,” he said.
Australian Kinesis and ABX organizations have jointly developed a digital currency network focused on physical assets – gold and silver – and these currencies move on the Kinesis Blockchain Exchange which is built as a proprietary fork of the Stellar Network.
The network which can handle more than 300 transactions per second and is combined with the facilities of mobile banking and fiat currency exchange.
ABX has partnered with JFX to extend gold investments into Indonesia and now both companies are launching a spot physical Sharia Gold Contract after Indonesia regulators and the National Shariah Board will have permitted it.
“A blockchain exchange version of gold-based currencies, through collaboration with Kinesis and ABX, is a natural extension of both the Jakarta Futures Exchange and the Indonesian government vision,” the statement read.
Kinesis and ABX CEO Thomas Coughlin said, ” The bespoke blockchain network that we developed creates a complete monetary system which enables real, physical assets to be transacted and exchanged digitally, at speed and at low cost.
We believe that the integration of physical precious metals and distributed ledger technology offers tremendous value to the Indonesian market, with its dual interest in gold and in blockchain. We look forward to continuing our partnership with JFX to bring this to fruition.”
While blockchain has been already used for quite some years now, the deployment of this technology has yet to be seen as one of the solutions to the real world challenges.
Stakeholders expect the Indonesian company to accelerate institutional adoption of blockchain technology by exchanging national ideas, business models and development solutions.