JPMorgan’s most recent Perspectives report claims that blockchain is still years away from achieving mainstream adoption, despite making strides among certain sectors.
According to the 74-page report , JPMorgan analysts contend that blockchain has seen extensive growth and use among certain companies like stock exchanges, but is still several years from reaching mainstream distribution.
The report’s authors claimed to see “long-term potential” for Distributed Ledger Technology (DLT) to transform the current business model for banks by providing a more efficient method for information transfer. However, the analysts said the pace of blockchain adoption will depend upon “resolving legal and technical concerns,” especially those related to cross-platform integration.
The report continues,
While we see widespread implementation of blockchain solutions at least three to five years away, challenges such as the macro-economic environment, legal and regulatory frameworks and technical challenges—such as cross-platform integration—may decelerate further progress.
Despite the lag in the mainstream attention, JPMorgan said banks are increasingly using blockchain for settlement and collateral management. The report also highlighted the maturation of the crypto markets, as institutional investors become more involved in regulated exchanges.
Featured Image Credit: Photo via Pixabay.com
