Taking Stock Of The Banks Scrambling For Blockchain

Blockchain technology is making ever-more inroads into various verticals to convey data and payments, according to a recent report from audit, assurance, consulting and tax services provider PwC, and appears to be moving away from cryptocurrencies in the process.

In fact, PwC gives a sense of just how prevalent this is becoming, writing in its “Global Blockchain Survey 2018” that responses from 600 executives across 15 territories indicate an enthusiastic embrace of distributed ledger technology (DLT). As many as 84 percent of the polled firms are involved with DLT, the survey found.

“Companies have dabbled in the lab,” the company wrote. “Perhaps they’ve built proofs of concept. Everyone is talking about blockchain, and no one wants to be left behind.”

PWC noted that research firm Gartner believes blockchain will help generate annual business values of $3 trillion within 12 years, and be responsible for as much as 20 percent of global economic infrastructure.

Among the verticals in which blockchain is finding purchase is financial services. The most recent examples are varied, with the World Bank launching the first bond on a blockchain, and the Commonwealth Bank of Australia (CBA) reporting the first bond to be created and transferred across seven investors in the blockchain. Those investors include First State Super and Northern Trust, as well as others.

Other new launches are also occurring around the world. Bloomberg recently reported that banks in Kenya are looking to gain regulatory approval to use DLT to boost payments and help with credit scoring. Such news coverage might be excited and excitable, but a few wrinkles emerge. Forty-five percent of its survey respondents believed such trust could delay implementation, PwC explained, and a slightly higher percentage saw regulatory concerns as a roadblock to blockchain adoption.

Another 28 percent reported that interoperability of systems would be key.

These data points and others might be enough to throw a damper on blockchain adoption. Find out why here.