The adoption of blockchain technology by various firms has become a thing of constant debate by experts in the financial industry. The parties that move for its adoption make this claim based on it’s the technology’s transparency, seamless and secure features. These are only some of the many benefits the experts claim blockchain has.
The other party claim the innovation is still immature and would require that companies would have to change or alter a robust IT infrastructure already in existence. Apart from this, the varying data possessed by different companies would make the adoption of a generic technology quite difficult.
Adoption of Blockchain Technology not Advisable?
Professionals in the industry say that financial institutions will need to swap their current internal IT infrastructure for mass adoption of digital currencies and blockchain. This information was made known by Scotsman, a Scotish news channel on Friday, November 9.
Jeremy Drain, personnel from Libra- a cryptocurrency-focused software company stated that some firms who assume their current infrastructure could accept cryptocurrency and blockchain were wrong. He added that due to firms’ data being different, their systems would be unable to function with blockchain and cryptocurrency. He made these statements while delivering a speech in Edinburgh at ScotChain18 conference devoted to blockchain technological impact on commerce.
Deloitte’s Risk Advisory Leader for Fintech and Regtech, Kent McKenzie and Cambridge Centre for Alternative Finance representative, Apolline Blandin addressed the need for blockchain’s standardization in the finance industry and regulatory challenges posed by blockchain for the government.
The CEO of Monax – a smart contract provider, Casey Kuhlman said it is an immature software, and the proposition of its value is vague owing to the various initiatives involved in each and every cryptocurrency solution.
Blockchain has Become a Necessity
Michael Young, the CEO of MBN Solutions, a recruitment firm said the investigation and adaptation of blockchain by many companies would have an effect on the ability of traditional IT setups to support this new technology. He added that most companies that have implemented and are making use of the blockchain technology only had to do one thing. This was ensuring they had in place, the right infrastructure to make sure they experienced the secure, rapid and seamless transmission and processing of data using the blockchain technology.
Fujitsu, a Japanese IT services and equipment company announced as part as a combined project with nine local banks its plans to build an interbank blockchain-based settlement platform. This project is aimed at confirming the viability of the blockchain technology while using a certain unnamed digital currency to make payment and settlements.
In June, the Moscow Exchange (MOEX) stated that the preparation of an infrastructure that will permit companies to conduct Initial Coin Offerings (ICOs) is underway and it is expected to launch this year. Alexander Afanasiev, the CEO of Per Moex mentioned that tokens would not be listed on the exchange, instead; the trading platform will provide useful information about the responsibility of the issuers of a token coupled with the issuance of future contracts for ICOs given there is sufficient demand of the token from investors.