Blockchain and fintech play a central role in the digital revolution that is shaking the world of banks, insurance companies, and other financial markets. Therefore, it is the reason for a new arrangement that will allow the revision of positive law to empower the issuance and conduction of certain non-admitted financial securities to the operations of a central securities custodian using this platform.

The use of blockchain is increasingly considered in many financial institutions, but applying it is quite complex. In this regard, two key components are distinguished: 1) determining the mechanism of the system, and 2) enabling acceptance.

The key challenge for financial institutions today is to determine the mechanism used within the blockchain system and apply it in their operations. This is a lengthy process that involves extremely complex research and testing, demonstrating the justification for the adoption of this advanced platform in daily transactions due to lower operating costs and faster fund transfers.

Bitcoin is based on a distributed database blockchain that is seen as a large register containing all transactions made. This database is replicated on all nodes. Blockchain is the computer technology used to create virtual currencies. Many institutions are also interested in applying the features of blockchain, a technology for storage and transmission of information at minimal cost, which is also secure, transparent, and operates without central control.

Even if this acceptance changes almost completely in certain activities, for example, that of officials who will have to develop more towards advice and representation at the expense of mechanical tasks of registration, conservation, and restitution, opponents will probably be fewer and less powerful than in the monetary field, which, in general, will promote the adoption of cryptocurrencies.

At the same time, the diversity of fields of application will favor the existence of different payment systems, hence different units of account. As is the case with other blockchain-backed cryptocurrencies, Bitcoin was created from computer technology that represents secure and functioning information storage and transmission technology without central control. The blockchain is similar to a huge, public, anonymous virtual registry of all transactions made by users.

This article is part of the academic publication Dividing by Zero by Ana Nives Radovic, Global Knowledge 2018