The Future Looks Promising for Blockchain Technology

The Future Looks Promising for Blockchain Technology

Marrysa Prijadi Tjahja

1901466931

Being a banker, I strongly consider blockchain technology to be a technology juggernaut that is going to transform the financial services sector by increasing transaction efficiency, transparency and security while reducing costs. Through the distributed ledger mechanism, blockchain technology will eliminate the need to have intermediaries for the end-to-end trading process. This will certainly attract investment banks as it will help them reduce the costs involved in the trading process and significantly increase transaction speed.

Also, the implementation of blockchain technology will help banks integrate ledger and processing systems, reduce reconciliation activities, and streamline clearing and settlement. The benefits of blockchain applications are predicted to be significant. According to one financial magazine, blockchain technology could help banks reduce infrastructure costs related to cross-border payments, securities trading and regulatory compliance by US $15 billion to US $20 billion per year by 2022. The high volume of financial technology startups emerging across the globe use blockchain platforms extensively to power digital currencies, strengthen transaction security and create decentralized markets.

Despite of the many unique selling proportions of blockchain technology, it still needs to get into the lines of robust payment platforms, such as SWIFT. To become a trusted partner of all the stakeholders involved in financial transactions, blockchain technology needs to evolve further to give the required confidence by assuring the security and reliability of the platform. The future success of blockchain implementations in the banking sector will be based on the trust that regulators and banks develop have in the blockchain technology platform.

Sumber Penulisan/Daftar Pustaka : https://www.isaca.org/Journal/Blog/Lists/Posts/Post.aspx?ID=373