It’s obvious that the world is facing a new era in banking and finance, “Quantum Technology” is the current technology in the financial system that has been standardised and designed to obtain a legal framework to facilitate the introduction of quantum applications in finance to guarantee and safeguard the smooth protection of banks, their dealers, customers as well as investors, financial markets and individual privacy rights.
Based on the above and in order to have steady financial technology, we believe that private sectors worldwide are the backbone for any development to be made or incorporated into this quantum technology. Therefore, the private sectors are considered at the forefront of rule-making or the tool/ base of any amendment or development concerning quantum technology. They are the most specified area to be affected positively or negatively by any enhancement in the said technology.
It goes without saying that regulations/ legalisation of the role of rulemaking, in particular through standardisation concerning any subject/ item, should be made by the concerned state or made by a well-recognized and standardised international body/ institute.
It’s to be noted that from a legal point of view, the state can regulate and enact its own laws and regulations provided that such private rulemaking should be in conformity with the current applicable standardised/recognised bodies such as International Organization for Standardization (ISO), European Committee for Standardization (CEN) (CENELEC) and private standing settings such as International Swaps and Derivatives Association (ISDA), the UK Financial Market Standards Bored (FMSB) and Swiss Financial Market Supervisory Authority (FINMA).
Of course, the above reservation/ remark should not prevent rulemaking from utilising the creation of contractual agreements between the procedure of technology applications, users, and third parties.
Despite the current steady, smooth financial transactions throughout the world, but nevertheless, the banks, as well as the businessmen and investors, are still looking forward. In fact, they are very keen and anxious to have more security and complete protection/guarantees while transferring their money worldwide, especially since the world nowadays is facing many vicious expert hackers, cyberattacks and malicious misusing/ mismanagement in handling/ cross-border transferring money.
The above situation warrants the necessity to develop or create a new revolutionary technology to enable/ enhance more security, efficiency and counterfeit and resistant financial systems to pave the way for a promised solid financial development in the world of finance. This is why bankers, as well as businessmen and financial researchers, think deeply about exploring more powerful methodologies to secure modes of communication known as ( Quantum Internet/ Quantum Financial System “QFS”).
Also, the International Monetary Fund (IMF) advised that quantum computers should potentially revolutionise industries that require substantial computer power.
The QFS will utilise the current applicable blockchain technology to democratise wealth generation and quantum encryption to safeguard all types of funds. It will allow banks and businessmen to transmit data through an unhackable quantum network and provide a secure, faster platform for financial transactions worldwide.
The QFS is still being processed, and bankers and the concerned researchers are doing their best to implement it and put it into effect. Still, this proposed system has its advantages and disadvantages. One of the most disadvantages is that it is bloody expensive, time-consuming, and the most important disadvantage is that it needs competent and qualified researchers, “legal, financial, economist and scientists.” to complete the assignment very successfully “without any pitfall”.
There will always be a controversial question:
Is quantum in finance a violation of human rights laws, environmental laws, or the law of data privacy, as well as a breach of any contractual relationship between the parties?
Another perspective to consider is the legal/ social impact of the QFS's applicability to foreign direct investment (FDI) worldwide.
Although technology and digital are considered clean resources, it appears that the installation of the “QFS” will depend on satellites. Therefore, the law of the airspace and outer space will be applicable, and the risk of environmental damage in outer space is foreseeable and may open doors for future claims.
Taking into account the above points, the legal, financial, and technical aspects should work together to invent or create a healthy and strong baby/ system “from the start” without any distortion or defect and third-party complaints. In other words, the new enactment of the new technology “QFS” should not contradict or vary with the currently applicable laws and technology.
Bearing in mind the above disadvantage of the “QFS”, we believe that it is sound and better to go for the unification of the current applicable technologies along with the proposed “QFS” at least to avoid any problems, misunderstanding, misapplication or contradiction while applying and implementing the new system “QFS” in the future. The unification can occur by Merger & Acquisition or Collaboration Agreement and Joint Venture “JV” agreement with the real/ true owners of these current technologies.
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