Deloitte says pretty much everyone in financial services is being impacted by the fast-changing landscape
From cryptocurrencies to NFTs, it’s getting harder to avoid discussions with clients about digital assets.
Some love them already, some prefer to stick with what they know, and some are unsure of what to do. But digital assets are fast becoming part of the financial ecosystem and financial services executives see some big shifts in the medium term.
A new report from Deloitte highlights the disruption that digital assets are bringing and says that their rise is “affecting every organization and industry that is a customer” of the global financial services industry.
Despite the high profile of cryptos such as Bitcoin, and NFTs that are challenging fine art in the collectibles space, it’s actually the underlying technology that is the big driver of change, blockchain.
Deloitte’s 2021 Global Blockchain Survey asked financial services executives for their views on blockchain and their investments in it so far.
End of fiat?
One of the biggest changes that respondents see on the horizon, is that digital assets will be a “strong alternative to” or even a replacement of fiat currencies in the next five to ten years.
More than three quarters of respondents believe this to be the case and most also believe that digital assets will be somewhat or very important to the industry within the next 24 months.
The report asks many questions about the impact on financial services and while there is a sense that the industry is “racing to write the future to define their role in it,” how that future looks is uncertain.
Eighty percent of respondents believe that blockchain technology is “broadly scalable and has achieved mainstream adoption.”
Similar shares of the executives believe that there is a compelling business case for the use of blockchain, cryptos, or other digital assets within their organization; and that not doing so will lose them competitive advantage.
Among the main uses that are expected are new payment channels and types, and diversification of investment portfolios.
Risk and opportunity
However, regulatory challenges are seen as one of the biggest barriers to mainstream adoption of digital assets, although cybersecurity tops these concerns.
The upside is that most respondents believe that digital assets will help to reduce risks for organizations or projects.
Although the financial services industry is working hard to adapt to the new world of digital assets, the report concludes that change must be embraced to ensure the right outcomes for the industry’s products and services.
“The future is happening now” and the industry has no choice but to embrace it, the report warns.
The full report is at: https://www2.deloitte.com/us/en/insights/topics/understanding-blockchain-potential/global-blockchain-survey.html
