This week our Star Letter goes to Mark Dryden for his comment under the article: FCA to analyse blockchain technology risks and benefits
He said: “There’s some really, really good things about blockchain but two fundamental issues need solving before any genuine velocity can occur:
1) Blockchain is a foundational technology, much like TCP/IP – adoption is going to be slow as many systems need tearing down in order to build back up. Financial services organisations tend to be a cagey lot and while there’s a hint that once the floodgates burst everyone will follow, who in the chain of investment, mortgage and protection purchasing is likely to see a genuine advantage in adoption?
2) Transactions work on trust and identity underpins the nature of transaction handling. There is no real identity standard that is really standing proud here, unless this defuses into the standards in Open Banking, this will become a real inhibitor to adoption.”