Could you explain the legal implications of using blockchain to a client?
Under a cloud of negative bitcoin publicity, blockchain has nevertheless taken the payments and settlements business by storm. Why is it so attractive? What are the issues around public ledger? Banks and clearing houses are only just getting started, but everyone can see a future that will save substantial amounts of money. What could possibly go wrong?
Blockchain is a ‘disruptive’ force in payments and settlements, but what will happen in the case of a payments/settlements dispute? What is the jurisdiction of blockchain-based currency and does it need one? What if a Central Bank disputes the validity of a blockchain-based payments instruction? What if a Central Bank refuses to convert a blockchain-based currency to real world money?
As financial services clients engage with new payment methods, their legal advisors must keep pace and be able to advise on how blockchain will impact the structure of their businesses, and how to capitalise on it. A currency that does not have a home country and an accounting system that is freely visible to all can lead to a range of problems. This course explains some of the issues banks are currently dealing with.
The course will deal with the following:
- How safe is the encryption technology used?
- What are the risks of disclosure with public ledger?
- How does the blockchain/legacy currency interface work? What are the legal risks?
- How easy is it to track a blockchain account?
This is an essential overview for all those joining a corporate department in a City law firm and for in-house counsel who haven’t had previous exposure to this arena or would benefit from a refresher.