Banks hesitate with blockchain adoption - McKinsey

FInancial companies are in no hurry to adopt blockchain despite an enormous potential of this technology, a consulting company McKinsey reports.

McKinsey analysts explained that legal and regulatory uncertain remains of the critical barriers that hold the industry development and mass adoption.

Apart from that, the experts believe that the financial companies are also wary about high volatility of Bitcoin and major altcoins.

However, the governments, investment banks and suppliers of infrastructure solutions continue experimenting with blockchain-based systems in an attempt to reduce costs, improve transparency and efficiency in different segments of the economy, including the financial sphere.

"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 report states.

McKinsey emphasized that global financial regulators, including the US SEC and British FCA, have yet to develop the acceptable rules and regulations for the industry. 

Earlier, McKinsey said that the progress in blockchain developments is negligent despite massive investment flows.