SMU SKBI Research Fellow and R3 CEV Director of Market Research Mr Tim Swanson said that the biggest challenge when working with banks to design protocols for a working blockchain, the technology underpinning bitcoin, is managing expectations while at the same time pushing to build a working platform as quickly as possible. Mr Swanson noted that member banks are interested in testing the R3 blockchain for a range of applications, including trade financing, processing syndicated loans, the settlement and clearing of over-the-counter derivatives, and marketplace lending. He added that the technology could also assist regulatory monitoring for systemic risks in financial markets by offering regulators a window into real-time data, which they can read and react to and create policy towards.