by Caroline Shinkle ’20

Caroline Shinkle spent the 2020 and 2019 winter terms at the Bank for International Settlements (BIS) in Basel, Switzerland. At the BIS, she engaged in stimulating and impactful work surrounding tokenization of assets and distributed ledger technology-based securities settlement.

 

It was a fantastic experience returning to Basel this J-term. Last winter, I conducted an independent clinical with the Basel Committee on Banking Supervision, and this past January, I engaged in an independent clinical with the Bank for International Settlements (BIS) Innovation Hub. While in Basel this J-term, my mission was to provide legal analysis of the various legal issues surrounding distributed ledger technology (DLT) application to the financial sector. Specifically, I focused on investigating the legal issues associated with tokenization of assets and DLT-based securities settlement.

 

My work was very timely, as many stakeholders at the BIS are very interested and engaged in fintech developments and the potential implications for the global financial system. The BIS Innovation Hub is spearheading these efforts; thus, it was very exciting to work with the group that is on the ground floor of exploring these new technologies and endeavoring to understand how these innovations can be leveraged to promote central bank missions around the world. In addition, because there has been relatively little progress in the development of legal frameworks for these new systems and technologies, it was extremely fulfilling and rewarding to have the opportunity to work in this space and provide insight into potential best practices from a legal perspective.

 

My independent clinical this year has once again highlighted the importance of the BIS’s work. When working here, one feels as though they are part of a larger mission that transcends geographic boundaries. I was excited to have been a member of the BIS’s team and to arrive to work each day to help take on some of the key challenges facing the global financial system. The work matters, and it is refreshing to feel as though you are having an impact.

 

I see an opportunity for transformational change in the financial sector through some of these new fintech developments. However, legal uncertainties and complications abound with respect to their adoption. How our policymakers and regulators choose to resolve (or not) these questions will have great consequences for the future. Perhaps, in the not-so-distant future, I, too, may be in a position to weigh in on some of these questions. Until then, I look forward to learning as much as possible about these issues.