A the Fintech industry grows, many governments want to partner Fintech companies but understanding the cybersecurity these companies offer will be what may finally tip the balance in favor of a partnership between the government and these companies. Blockchain sandboxes provide a medium for such to happen. The sandboxes provide a means for the government to test limited live activities on the Fintech platform. This will be advantageous, compared to a full test after checking off all the items on the regulatory list.
Most cryptocurrencies operate based on a blockchain technology known as the distributed ledger technology. This technology makes it difficult for cyber-attack and will be helpful to Fintech companies. Regardless of whatever blockchain the companies operate, they should all be subject to the regulatory sandboxes. As mentioned above, the live testing of the Fintech technology in a blockchain sandbox will give the government and the companies’ time to observe, interact and then draw up reasonable regulations that will guide operations.
Some financial experts have stated that understanding fully cybersecurity of blockchains will benefit both Federal agencies and businesses. Currently, some regulations for sandboxes are being reviewed around the world now (about 18 of them).
Multinationals like Microsoft, IBM and Maersk have included blockchain technologies in their business services. Some have even partnered with each other saving billions of dollars in the process. For example, the partnership between Maersk and IBM to use blockchain technology in monitoring international cargo saves billions of dollars and also monitors these cargoes in real time.
The blockchain technology also has one merit that pleases almost everyone; its transparency. The whole process involved in a blockchain can be accessed by all the participants. This is a big plus for the technology.
