Reuters/Mark Blinch
A Bitcoin sign is seen in a window in Toronto.
Wall Street is convinced that blockchain is set to radically transform the world of finance. But exactly how and when that transformation will transpire is uncertain.Blockchain, which gained notoriety as the technology behind the cryptocurrency bitcoin, is thought to have the potential to improve numerous businesses including banking, payments, and the capital markets.
Cognizant, a US-based digital consulting firm, recently surveyed over 1,500 executives from over 570 financial services firms on their respective strategies for integrating the technology into their infrastructure. According to the firm, there are a few things financial execs are certain about when it comes to the future of blockchain: blockchain is important, it will save them money, and it will lead to job losses.
"The vast majority of respondents (90%) said their firms has identified or is the process of identifying functions or processes that can be automated with block chain," the report said.
And 3/4 of those surveyed said they believe blockchain will enable them to automate at least 2.5% of their workforce. For large financial firms with tens of thousands of employees that could be hundreds of jobs.
And this would be on top of automation that has already taken place.
According to the report, Cognizant helped a US commercial bank use Ethereum, a blockchain-based platform, to transfer deeds between buyers and sellers without the need of a middle-man.
Wall Streeters, you have been warned.