Large financial companies like banks and insurance companies are in no hurry to adopt blockchain technology despite an enormous potential, states the report of a major consulting company McKinsey. Earlier, McKinsey said that the progress in blockchain software developments is negligent despite massive investment flows.
Today many governments, large investment banks and suppliers of software solutions continue experimenting with blockchain systems thinking of reducing the costs, improve speed and transparency of the transactions in broad variety of the economy, including the financial realm.
McKinsey analysts say that there is legal and regulatory uncertainty around blockchain software that still holds the critical barrier for the blooming industry development and mass adoption of blockchain.
The blockchain experts believe that the traditional financial companies are worried about high volatility of Bitcoin, Ethereum, etc.
The report says "For instance, investment banks envisage a world where transaction execution, post-trade processing, and settlement are instantaneous, cutting-off numerous middle-and back-office processes. They are also focused on the potential for smart contracts to increase automation,”.
The global players like fiscal regulators, including the USA SEC and British FCA, have yet to develop the acceptable rules of the game and regulations for the blockchain industry.