The World Economic Forum recently released a report on blockchain’s potential to transform the financial infrastructure. The blockchain is the spinal cord of Bitcoin, the first decentralized digital currency, and this technology can profoundly change the traditional financial model.
The report is the most recent phase of the Forum’s ongoing Disruptive Innovation in Financial Services project. It draws on over 12 months of research, engaging 200-plus industry leaders and subject matter experts through interviews and multi-stakeholder workshops.
According to the report ‘Opportunities Obstacles: Blockchain and the Future of Financial Infrastructure’, blockchain technology is here to stay. Therefore, there is a need to understand both the positive and negative impacts that this technology will have over the current model of financial intermediation.
The World Economic Forum’s analysis is based on six key findings regarding the implications of distributed ledger technology (DLT) on the future of financial services:
- DLT has great potential to drive simplicity and efficiency through the establishment of new financial services infrastructure and processes
- DLT is not a panacea; instead it should be viewed as one of many technologies that will form