[Bit]coin flipping: World Economic Forum believes blockchain is the future of FinTech
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Blockchain is one of the hottest topics in the world of FinTech, but can it become the engine of financial firms? The World Economic Forum says “yes”.
The World Economic Forum recently released a report titled The Future of financial infrastructure: An ambitious look at how blockchain can reshape financial services in which it claims that blockchain will play a central role in the global financial system. The report, which represents the biggest pat on blockchain’s back so far, is based on the findings from Deloitte/World Economic Forum report Disruptive Innovation in Financial Services and examines the impact of implementing distributed ledger technology across nine sectors of financial services.
The report suggests that blockchain “has the potential to ‘live up to the hype’ and reshape financial services.” However, in order to truly occupy a central position in the FinTech world, the technology behind Bitcoin must be paired with “other emerging technologies, regulators, incumbents and additional stakeholders.”
Blockchain ready to assume a bigger role
Giancarlo Bruno, the head of financial services industries at the World Economic Forum, told The New York Times that the technology behind Bitcoin will become “the beating heart” of the finance industry. The report revealed that blockchain has the potential to “drive simplicity and efficiency by establishing new financial services infrastructure and processes” and is likely to “form the foundation of next generation financial services infrastructure in conjunction with other existing and emerging technologies.”
SEE ALSO: “Blockchain will outgrow Bitcoin”
Although the changes in infrastructure won’t probably be evident enough to be noticed by consumers, cheaper and faster financial services might become part of the deal if blockchain continues to evolve and eventually becomes “the beating heart” of the finance industry, the report shows. It also estimates that around 80 percent of banks worldwide could start distributed ledger projects by next year and reveals that large central banks are analyzing how this technology will change the way money moves around the globe.
On the same wavelength
The idea that blockchain may in fact change the course of the finance industry is not new; a few months ago, Jerry Cuomo, vice president of blockchain technology at IBM, told the President of the U.S. Commission on Enhancing National Cyber Security that blockchain may cause a “tectonic shift” in the way financial systems are secured.
Cuomo encouraged government agencies to become early adopters of blockchain applications, but also included the government in this conversation, stating that it has an essential role to play in authorizing the identities of participants in systems that are blockchain-based.
Spiros Margaris, the founder of Margaris Advisory, told JAXenter a couple of months ago that even though blockchain has its challenges “and it will take time to overcome them, once we overcome those challenges — which many banks and startups work hard on to do — it will change things for the better in our lives.”
We are only at the very beginning of what will come out of the FinTech industry in the years to come. We will see things with AI, blockchain, payments, insurance, lending, etc. that we cannot imagine now that those things could have been or will be possible.