Sixty per cent of business professionals think the finance industry will gradually adopt blockchain technology within the next year, according to a recent poll. At a blockchain summit in New York, held by EY, 60 per cent said they expect the financial/professional services industry to see the most blockchain breakthroughs in the next two years. And within finance, 60 per cent of respondents believe that the industry will gradually adopt blockchain technology within the next year, while a further 17 per cent anticipate rapid adoption in this timeframe.
Increased operational efficiencies is the main advantage of blockchain technology (said 28 per cent of those surveyed), followed by a high level of transparency (18 per cent) and trust in data integrity (16 per cent).
However, the complexity of regulations are currently the main factor stopping widespread blockchain adoption according to 61 per cent of the business professionals polled by EY.
Other obstacles to adoption were: integration with legacy technology (51 per cent) and a lack of general understanding of blockchain’s capabilities (49 per cent). EY's Paul Brody commented: “As blockchain platforms become more mainstream, putting a robust governance model in place will be key.”
The poll also found that:
- The US is expected to see the greatest adoption of blockchain globally within the next two years – the poll's respondents believed the US would see greater adoption than China, Japan or the UK.
- Respondents also cited changes to regulation as the primary driver for the integration of blockchain technology into the broader enterprise ecosystem (37 per cent), followed by adoption of blockchain as a digital currency by top companies (23 per cent) and acceptance of the technology among central banks (18 per cent).
4 key blockchain transitions on the horizon
EY also outlined four upcoming transitions for the technology, which it believes will enable blockchain to become fully adopted in business operations, leading to a surge in applications across industries:
- transitioning from private to public networks to create an open system for all users;
- shifting from synchronisation to tokenisation to improve accuracy and reduce risk;
- moving from cryptocurrency to tokenised fiat currency to transfer value on public networks; and
- shifting from parallel separate systems to integration with laws and regulation from central banks and governments.
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