BCG Preaches Organizations to Consider Blockchain Rationally
Blockchain technology might not be as practical as the public view states. Blockchain technology is widely believed in the business industry as an alternative that would address the weak points of the global financial system. However, according to the BCG report, the dominant opinion does not tackle some crucial factors that would make this belief less likely, and much more challenging.
According to the BCG report co-author, Antti Belt, the existence of a digital currency that is controlling physical properties is difficult to sustain, and he describes it in his words as two different colliding worlds.
On top of that view, the report states the clear fact that if all organizations would start to look towards Blockchain Technology, they would need to spend most of their investment implementing new systems to work efficiently.
Some entities went over the $100 Million mark to upgrade their IT system to fit the international standard. So, it is highly unlikely that they would afford enough liquidity to upgrade their systems all over again.
The only clear point stated by the authors is the fact that Blockchain Technology is a beginning to a new world-wide debate that would trigger more thoughts to creating more unifying terms for the world, both financially, and politically. As this is the closest we have ever been to a unified world-wide currency.
The bottom line of the BCG report is, even if Blockchain technology has the ability to solve existing disadvantages of the current economic system, and that it is able to help organizations sustain their liquidity. The cost and regulations required to achieve these results are very challenging to be a standard for all entities.