A risk assessment agency within the UK government recently published comments on blockchain technology.
Primarily an overview, the publication by the Government Actuary’s Department is the latest to emerge from within the UK government, which has seen a number of offices give their perspective on the technology.
Various offices within the UK government have begun a variety of initiatives focused on blockchain, including efforts to fund projects as part of its broader commitment to technological innovation. Earlier this summer, the UK agency in charge of its welfare programs initiated a trial that uses a blockchain to track payments, drawing scrutiny from some privacy advocated after it was announced.
For their part, the Department of Actuaries notes that, if adopted, the technology could help reinvent the way financial services manage themselves.
The article’s author writes:
“In sum: blockchain and its competitors have the promise to revolutionise the currently expensive, inflexible, and slow administrative systems used in financial services.”
It goes on to suggest that broader adoption could take place, so long as relevant regulatory concerns are addressed. At the same time, the department notice cites recent actions by the Financial Conduct Authority as positive in this respect.
Should these barriers be reduced, financial services could reap the benefits of reduced cost and operational complexity.
“There remain a number of significant obstacles in the way of progress but in the coming years we may see the financial services industry becoming more streamlined and efficient if these ‘fintech’ revolutionaries successfully navigate them,” the note concludes.
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