The report of the consulting firm McKinsey & Company states that a huge number of financial institutions are extremely cautious about the blockchain, despite the significant potential of this technology for the financial sector. BTC Manager reports about it.
According to experts, legal uncertainty is a significant obstacle for the implementation of distributed ledger technology in various bank processes. In addition, financial institutions are wary of extremely high volatility of Bitcoin and Altcoins, which are based on the blockchain technology.
Nevertheless, governments, investment banks and infrastructure solution providers continue to experiment with blockchain-based solutions, seeking to reduce various costs, improve process transparency and financial performance.
For instance, investment banks envisage a world where transaction execution, post-trade processing, and settlement are instantaneous, cutting-off numerous middle-and back-office processes. They are also focused on the potential for smart contracts to increase automation.
Report says various financial regulators, including the US SEC and the British FCA, have not yet developed acceptable rules for the cryptoindustry. Nevertheless, despite regulatory uncertainty, large companies continue to invest heavily in this area.