ANZ Banking Group has dissected blockchain technology, cataloguing its limitations and finding it unsuitable for mainstream banking. The bank’s research, conducted over two and a half years, concluded that while blockchain has potential, it is not ready for widespread deployment in the financial sector.
The bank’s main criticisms revolve around data privacy, scalability, and regulatory compliance. ANZ found that the transparency of blockchain, while beneficial for some applications, poses a risk to customer privacy in banking. The technology’s scalability is also a concern, with the bank noting that the Bitcoin blockchain can only process seven transactions per second, far below the thousands that major banks handle.
Furthermore, the bank found difficulty in integrating blockchain with existing financial systems, particularly in meeting regulatory requirements. Despite these findings, ANZ remains open to the potential of blockchain, acknowledging the technology might evolve to overcome its current limitations.
The bank’s findings align with the views of other major banks and financial institutions, many of which have tempered their initial enthusiasm for blockchain. The consensus seems to be that while the technology holds promise, it is not yet ready for prime time in the world of high-speed, high-volume financial transactions.
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