Reports: Cryptotechnologies Garner Record-Breaking Acceptance and Investment
Contrary to numerous predictions and announcements of bitcoin and related technologies being bleeding demised, recent reports depict a picture of increasing and, at times, overwhelming interest and support from financial industry.
Thus, according to the report compiled by FTI Consulting, 70% of surveyed financial institutions believe that the blockchain technology is capable of impacting their business positively, rather than disrupting it, as some crypto-enthusiasts may believe. The report also states that nearly 90% of those surveyed know pretty well about blockchain.
Speaking about the report, the company’s managing director Dan Healy told CoinDesk:
“We did it primarily for our own information, to learn what financial institutions know or think of this. We hear a lot about the same FinTech companies eating the lunch of more traditional financial institutions and this was with that view.”
The other report, released by CB Insights and KPMG, depicts a picture of increasing prosperity in cryptospace. The document states that 2015 became record-breaking for the industry in terms of investment amounts, which comprised nearly $474 million. The report titled “The Pulse of Fintech” covered several series C investment rounds, including those of 21 Inc., Coinbase, and Circle, totally responsible for almost a half of the overall amount, or $236 million of investment, with $111 for 21 Inc., $75 million to Coinbase, and $50 million to Circle Internet Financial.
Additionally, the report states that industrial interest in blockchain technology has also grown last year. However, blockchain in its current state, the report suggests, may not meet the requirements by the financial industry’s major players.
“Investors looking for immediate, short-term success may be disappointed. […] Corporate investors need to qualify their expectations when it comes to blockchain and the obstacles associated with achieving value. The technology is not a silver bullet that can solve every problem tomorrow. To get the most value, corporate investors […] need to encourage industry-focused engineers to define the problems blockchain can help resolve, find the best and most costs effective technology solutions and work through limitations to scope, scalability, velocity and usability,” the report reads.
While being generally positive about the technology, the report also provides some warnings for the instance if it fails to meet the expectations currently inherent in the industry. It advises investors to be reasonably cautious when it comes to innovative technologies.
“Corporates that encourage use-case testing “whether for the securities trading lifecycle, the processing of a loan, or digital identity verification” and who can learn from this experimentation can be better positioned to adjust course and achieve the most value. More widespread implementation at this stage could have serious financial consequences should the technology not live up to expectations,” the report reads.
However, though the reports in question did not cover the technology’s perception by government institutions, most of them are well-aware of blockchain and consider employing its capabilities.
Thus, in late 2015, the British government stated it would invest 10 million GBP in research of financial technologies and distributed ledgers. The move was preceded by a public inquiry concerning the blockchain technology and bitcoin. The UK government’s chief scientific advisor sir Mark Walport called it to implement the blockchain technology in various government services in early 2016.
Ukraine launches a blockchain-based system for running state property auctions. Furthermore, the country concedes using a voting system based on Ethereum blockchain.
Even in Russia, known for its nearly paranoid attitude towards anything beyond the officials’ control or understanding, the government, while being extremely hostile to cryptocurrencies, still praises the blockchain.
“We see the convenience and usefulness of the blockchain technology for e-commerce, so we think the technology shall have a permission to develop,” Russian Ministry of Finance told ForkLog.
Meanwhile, the Bank of Russia may use the technology to control microfinancing markets. Finally, in early 2016, deputy chairwoman of the Russian Central Bank Olga Skorobogatova assumed that blockchain-based systems for financial markets may emerge as early as in 2017 or 2018.
Having that all in mind, the blockchain technology may have surpassed the wildest dreams of crypto-enthusiasts in terms of its acceptance. However, most of those trends leave Bitcoin behind and even mention it pretty seldom, so the news may possibly be not as good as one might like.
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