Morgan Stanley Claims Blockchain Still Has Obstacles

By May 4, 2016Bitcoin Business

The giant corporation Morgan Stanley , a multinational financial service provider who focuses on wealth & asset management, has recently released a paper on blockchain technology. The report titled Global Insight: Blockchain in banking – disruptive threat or tool? explains the protocol will be a disruptive economic tool in the future. Despite knowing this, the firm says it will be quite some time before it affects legacy institutions. Morgan Stanley’s Global Insights Report Says the Firm is Not Worried Yet

Global Insight is directed mainly at “sophisticated investors only” and gives a detailed description of a vast array of market analysis and financial insight. This particular report concentrates on distributed ledger technology and what this means to companies like Morgan Stanley . The firm gives way to explaining the technology has promise, yet the financial management provider believes they have nothing to worry about for the time being. The blockchain industry is very young the paper details, and it has a lot to overcome before it gains mass attention. The Global Insight report reads: “Blockchains could have widespread potential to disrupt financial intermediaries. Our in-depth study suggests several misconceptions & identifies 10 hurdles to overcome to make blockchain a reality in banking. The opportunity is clear, but the blue sky is too far off to impact our 2017/18e.” Morgan Stanley says the it’s the early days of the distributed ledger game and the “heavyweights” in this environment are “industry-supported consortia rather than [venture capital]-sponsored startups will have the edge.” Within this realm of bank-sponsored technology creators, they mention IBM and R3 CEV . Another bold statement by the authors says blockchains with no central authority like Bitcoin will not be allowed to be as fruitful as permissioned blockchains. The paper explains: “Not a single policymaker we met with […]

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