Financial Institutions Are Readily Investing In BlockChain Technology
Blockchain technology has consistently been purported as a tool to make the financial services sector more efficient. According to research conducted by Greenwich associates, financial institutions are spending $1.7 billion on the technology every year. However, the impacts of block chain technology remain uncertain.
Executives at financial institutions are worried that blockchain technology is not scalable within their firm and the products that their particular firm offers. Additionally, there is little information as to how blockchain technology will be regulated.
Some banks are continuing to move forward in determining more specifically how blockchain technology can be readily adopted. Executives in financial institutions are still unsure as to whether blockchain technology is reliable and can be trusted.
Major banks and other financial institutions have pioneered the integration of blockchain technology into their operations. Those include Bank of American, Citi Bank, PayPal, Mastercard and Visa.
Business Insider suggests that for financial institutions to successfully adopt blockchain technology, a firm should first decide how much money they are willing to allocate to the effort. Afterwards these financial institutions must focus on a business problem that can actually be addressed with blockchain technology.