This is the first of a series of posts where we outline a vision of a “Distributed FMI” (dFMI), a vision that goes beyond the narrow, technology-centric goals of operational efficiency improvements that are found in many DLT initiatives.
dFMI is a multi-disciplinary construct that combines distributed protocols and cryptography with economic mechanism design to re-imagine how the functions performed by FMIs today can be replaced with infrastructure that is not concentrated in FMI intermediaries. Rather, the power is with the participating members/users of the infrastructure, effectively returning to the mutualized ownership structures that were prevalent as recently as 30 years ago. dFMI will help contribute to a financial system that is more resilient, competitive and anti-fragile.
Read our post on Medium here.