Accenture Directors Are Concerned About Blockchain Shift To Financial Market

The adoption and development of blockchain technology is at a crossroads. At the moment, large companies are actively researching the feasibility of the nascent technology and its application in corporate settings.

Institutions currently devoting teams to advance the blockchain and expose its many uses include UBS, Samsung, Santander and IBM. The latest establishment to provide insights on the bitcoin technology is top-level management consulting firm, Accenture.

“To be used by financial institutions, including capital market firms and insurers, blockchains must supplant the costly methods introduced by bitcoin with a mechanism that guarantees security, privacy and speed without paying for anonymous consensus,” highlighted Owen Jeff and Sigrid Seibold, Accenture managing directors.

The group sees potential in digital ledgers, but also pointed out that its association with bitcoin could be stifling the system’s entry in mainstream sectors.

Bitcoin’s reputation in the financial community is split down the middle.

There are businesses that are quick to promote its use, while others refuse to touch bitcoin due to its ties with crippling security breaches. Furthermore, the digital currency’s fluctuating value has made it difficult for consumers to use on a daily basis.

Based on the complex regulations of the financing space, both individuals are of the view that meeting such standards could be a roadblock for many companies that are interested in the blockchain.

The directors hope to extract the record-keeping technology and apply the mechanics to existing, outdated systems. Smart contracts and permissible distributed ledgers are examples of its implementation in other markets.

“As seats at the table become fewer, only the companies and banks who embraced blockchain’s potential early will remain. Blockchains will bring disruption and displacement, but for the early movers, it will also bring opportunity and growth,” explained the duo.