As blockchain technology becomes a topic that is ubiquitous in the finance industry, many are slow to actually adopt it. About fifty companies have clamored to say that they are adopting it, but none have actually done so. Goldman Sachs, JP Morgan Chase, and Bank of America have signed onto R3, an industry-wide body that pledges to bring blockchain tech to the finance world. The only problem is, early adopters won’t get the same benefit as late-adopters. The first bank to adopt it will have to overhaul the current infrastructure which could cost millions if not billions of dollars. Regulations are loosening on the blockchain world, but those early investors would also have to spend a lot of capital to lobby to congress to get the technology approved.
“But because banks are reluctant to make the initial investments in blockchain, it may be up to technology companies to lead the charge, said Grainne McNamara, coleader of PwC’s blockchain for financial services practice.
‘They have two main reasons for doing this,’ McNamara said. ‘One is to drive their market share in the financial-services sector more broadly since the competition amongst providers is pretty fierce. Second, as firms move out of ‘rack and rack’ infrastructure and into the cloud.’
According to McNamara, it’s the technology companies like IBM and Microsoft with the big balance sheets and top engineering talent that will be the drivers of blockchain technology.
Microsoft and IBM have both taken lead roles in the blockchain space over the last few years, and both presented blockchain solutions at Sibos 2016, an annual financial-services-industry conference in Geneva. They’re among the technology companies creating shared protocols and standards for its adoption.”
“We’re probably overestimating the impact blockchain will have on the industry in the next two years, and underestimating its impact in 10 years,” Mike Bodson, president and CEO of trade-clearing firm DTCC told Business Insider.
Follow My Vote is on the forefront of developing an alternative use for blockchain technology. As the finance industry drags its feet to implement blockchain, experts predict that it will be the tech industry that leads the charge. After Follow My Vote released its initial alpha version, they have consistently received praise for newspapers that range from Forbes to the Huffington Post. See the press features.
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About the Author: David Brock is a marketing intern at Follow My Vote.