If You Can’t Trust People, Try a Smart Contract
By Elaine Ou
Trust is extremely valuable for markets and the economy. In its absence, though, technology might prove to be the next best thing. … Automated reporting appeals to banks, which have seen the cost and complexity of regulatory compliance increase sharply since the financial crisis. Policy-analysis firm Federal Financial Analytics estimates that the six largest banks in the U.S. spent $70.2 billion on compliance in 2013, versus $34.7 billion in 2007. In the last six years, regulators have generated thousands of pages of Dodd-Frank rules that each participant interprets in a slightly different way.