Blockchain Still Has Challenges in Mainstream Financial Implementation, Per to CAICT Researcher
Blockchain technology was created to go alongside the cryptocurrency industry, but the benefits of the distributed ledger technology quickly found itself useful in other industries. As supply chain management and logistics companies pilot various projects for their own use, traditional finance is still finding themselves challenged by its use, according to a well-known Chinese researcher.
Wei Kai, who works as the head of blockchain research with the China Academy of Information and Communications Technology (CAICT), said that there are multiple roadblocks in the way right now. Presently, the Chinese Ministry of Industry and Information Technology is in charge of CAICT’s research center.
While speaking at the 2019 International Chamber of Commerce (ICC) Banking Commission, Kai stated that there are three major problems with using blockchain tech as it is within the financial sector. Other industries have not found these problems to arise so far, but the researcher stated that data privacy, operability, and the integration with enterprise systems to be tricky topics.
Considering the widespread differences in regulatory approaches in various jurisdictions, Kai said that issues in coordination have arisen as well.
Even with these issues at hand, Kai believes that blockchain technology has not lost its ability to be a transformative force in the banking industry. The researcher adds that the technology can also be brought to other industries to fulfill its potential, like manufacturing, transportation, government, healthcare and medicine, and others.
KPMG, a Big Four auditing firm, had recently published a survey that showed the aversion of blockchain technology amongst finance and tax executives.
At the time of the poll, 67% of respondents said that they were not even using the technology right now. Adding to that statistic, the developer of StackOverflow revealed on April 9th that 80% of the 90,000 developers worldwide were not implementing or using blockchain tech at all.