The implementation of digital currency technology across the banking and financial sector is in full swing. Blockchain, the underlying technology of Bitcoin and other cryptocurrency protocol act as a distributed ledger recording all the transactions happening across the network. The same technology is now being implemented in other sectors to facilitate movement of financial assets and maintenance of records.
Digital currency and blockchain technology offer a wholesome solution to businesses. The advancement in blockchain technology has made it possible for companies to be registered on the distributed ledger, with the management structure and board information recorded on a blockchain platform along with the identities of every person involved in the organization. The company capital can be paid in bitcoin or other digital currency and the ownership of a company, in terms of equity can be distributed to the stakeholders in the form of crypto tokens that are governed by smart contracts. Well, that’s not all, even the bookkeeping, employee expense statements, salaries, audits etc. can also be part of the blockchain based system.
Security and immutability are some of the strong points of the blockchain. Any data once entered into the blockchain stays on the blockchain forever. At the same time, the privileges to access data can be controlled as well. These features make blockchain technology ideal for automated and transparent operations. These features also allow companies to meet their regulatory and compliance requirements in a cost efficient way.
By encouraging the adoption of blockchain technology among companies and other forms of commercial as well as non-profit entities, the concerned regulatory bodies can ensure regulatory and legal compliance among them. With all the documentation available on the blockchain, the regulatory bodies will be able to have ready access to the financial statements, audit reports and other documents that are supposed to be […]
