The International Securities Association for Institutional Trade Communication (ISITC) has just revealed the results of its recent survey within the financial sector that shows a marked upturn in interest in technological investment is the focus of the next year. Blockchain technology especially is at the forefront of over half of the businesses questioned, highlighting the potential of digital currency technology that still remains to be explored by mainstream financial operations.
Could we be seeing the beginnings of new financial infrastructure widely adopting blockchain technology in the future?
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The financial sector looks certain to embrace blockchain technology after the results of a survey by the International Securities Association for Institutional Trade Communication (ISITC) have been recently revealed. The survey polled 45 member firms, all major contributors within the financial services industry, to ascertain where their focus will be in terms of investment and research during 2016.
ISITC is a trade group focused on the standards and efficiencies involved within securities transaction processing, and the results show that the focus of the industry is very much on the technological aspects of the sector. In particular, over half suggested they are researching, developing or monitoring solutions for the use of blockchain technology within operations. This is second only to investment into improving cybersecurity, with 74% of respondents noting that area of investment.
In fact, the high levels of interest in blockchain technology is likely also tied to the focus on cybersecurity, one of the many benefits of blockchain is that it is transparent and immutable, and as a platform can reduce crimes such as fraud simply by the way it functions. This is not the only reason blockchain is attracting so much attention in the mainstream financial sector however, with 62% of those who responded noting that cutting costs is an important area of consideration through 2016, blockchain technology is also a viable solution here too.
The question is inevitable clear though, what does this mean for the cryptocurrency industry itself? While we are not seeing the consequences of this interest in blockchain technology yet, over the next 18 months to 2 years this research should begin to bring results, and real world implementations in the mainstream financial sector. This is important, simply because worldwide brand name financial institutions adopting the underlying technology of digital currencies for security and transparency reasons can go a long way to dispel the myths about digital currency itself that have certainly held back Bitcoin from even wider adoption.
It will be hard to sell the lie that digital currency is for criminals because it leaves no trail, or that it is dangerous because it’s insecure and so forth once mainstream media are proclaiming the security benefits and transparency of the technology. Bitcoin, as the vanguard of the digital currency industry, has long been tarnished with the ‘insecure’ tag and misinformation and scaremongering has made it hard to shift, but while association with mainstream finance is not always desirable, this is a road that can only lead to wider acceptance.