Blockchain technology and cryptos seem to be driving a wave of dynamism in the global financial ecosystem. Several experts believe that this trend could profoundly impact financial activities to the point of fundamentally transforming them. However, the challenges in seeing this come to fruition are very great.
Blockchain and cryptos, an opportunity for financial markets?
Cryptos through blockchain have a notable impact on financial markets. And there are signs that this dynamic is only just beginning. For experts, it is undeniable that blockchain could revolutionize financial markets. This, as the relevance of blockchain becomes recognized, accepted and more widely adopted.
This is already being observed to a certain extent. We remember that Larry Fink, the boss of BlackRock, was among the harshest critics of cryptos. However, this major personality of the global financial ecosystem did not hesitate to turn around in the face of the obvious relevance of bitcoin (BTC).
The CEO of BlackRock notably submitted an application for a Bitcoin ETF to the Securities and Exchange Commission (SEC). A procedure which caused a fashion effect since well-known asset managers followed the trend by filing similar requests. This is the case for companies like Invesco and Fidelity, for example.
The crypto market linked to blockchain therefore seems to offer a certain opportunity to financial markets. Because these companies, followers of capitalism and the search for maximum profit, do not go where colossal interests are not at stake. But they could not take advantage of this opportunity without overcoming certain obstacles.
Financial markets must address their internal challenges
To effectively benefit from the opportunity offered by blockchain, markets must essentially overcome the centralization of their activities. A complex, but necessary transition that requires comprehensive governance programs to accommodate all stakeholders.
Thus, implementing transformations involving blockchain requires a phased approach with manageable delivery plans. To this end, the operational processes of financial firms must be readjusted to the context of distributed environments where latency is higher than in centralized systems.
Not to mention that regulatory challenges must be overcome for large-scale adoption. The SEC continues to present itself as a scarecrow resistant to any progress, particularly when it affects the financial sector through cryptos. Still, industry experts believe that blockchain technology will eventually become an integral part of the global financial system.
Ultimately, blockchain technology is poised to reshape the financial landscape. However, it requires careful governance. Its progressive implementation, in an effective regulatory context, is also essential.
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