INTERVIEW
ix months into its establishment, the Malta Digital Innovation Authority (MDIA) – which was set up after the Malta Digital Innovation Authority Bill was approved by Parliament last year – is on a path to place Malta on the map as a centre of excellence for technological innovation, promoting its use and facilitating its advancement in the process, and setting standards and guidelines for the industry.
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Since taking on the role as CEO of the newly-established MDIA – the role of which is to certify Innovative Technology Arrangements (ITAs), and to accredit system auditors and technical administrators while promoting technology innovation – Stephen McCarthy says that one of the most exciting developments in this sphere is actually quite a simple one: that Distributed Ledger Technology (DLT), one of which is blockchain, is gaining wider acceptance.
No one is disputing the benefits of blockchain anymore, and it is being embraced by all. This is possibly one of the most important developments we’ve noticed recently. “When I initially started seven months ago, both locally and while attending conferences abroad, the atmosphere was different to now – blockchain wasn’t being widely embraced, the reason being that many still confused blockchain with cryptocurrency. However, things have changed,” says Mr McCarthy. “No one is disputing the benefits of blockchain anymore, and it is being embraced by all. This is possibly one of the most important developments we’ve noticed recently.” Its widespread acceptance and use can be seen through the various companies, hailing from many different sectors, that have adopted it, including banks. Recently, HSBC Malta announced that HSBC Group is already using blockchain technology and actively testing applications with customers in areas such as trade finance and foreign exchange.
“Banks that have adopted this technology for their operations have their own private blockchain for trade payments and international trade finance. They are satisfied with it and are focusing to improve it and widen its use in the realm of international trade finance. This is extremely encouraging, especially as banks tend to err on the side of caution. Banks also appear to be open to companies using blockchain to work with the bank. Again, it’s crucial to emphasise that we are not referring to companies that use cryptocurrencies, but rather companies that operate in non-financial sectors.” 57