This course goes beyond the hype, delving into the nuts and bolts of digital assets, and into the business potential of the underlying DLT/blockchain technology. Taking Bitcoin and Ethereum as examples, we explore DLT/blockchain technology as an innovation in information registration and distribution, the potential of digital assets and DLT/blockchain technology to transform our central bank-based monetary system, investment management, venture finance and core banking (e.g., payments, trade finance) and capital markets services (e.g., securitization, clearing and settlement).
Upon completion of this course, students will be able to:
- Articulate the fundamental concepts of DLT/blockchain technology, using Bitcoin as an example, and smart contracts, using Ethereum as an example
- Assess the merit of approaches to regulating blockchain technology and digital assets and the arguments for and against central bank digital currencies (CBDC)
- Understand the benefits and risks of investing and trading in digital assets and comprehensively evaluate cryptocurrencies and tokens
- Compare initial coin offerings (ICOs), security token offerings (STOs), and simple agreements for future tokens (SAFTs) with traditional venture capital financing and follow recent developments in decentralized finance (DeFi)
- Understand the disruptive potential of DLT/blockchain technology in banking and discuss the broader impact of digital assets and blockchain technology on the future of finance and beyond.