BRUSSELS, 17 May 2019 – WSBI Member CECA's think tank Funcas discusses the implications of blockchain technology for markets and banks in Europe in its bimonthly publication.
The following is an excerpt from SEFO, Spanish and International Economic & Financial Outlook.
For European banks, the potential benefits of using blockchain technology do not diminish the controversy surrounding it. From scalability challenges to the “blockchain trilemma” of recording information correctly, cost efficiently and in a decentralised way, the European banking industry is navigating the risks and regulatory issues of blockchain as it takes a global lead in the adoption of this new technology.
Blockchain technology has sparked intense debate in recent years. In the financial industry, this debate has centred almost exclusively on the rise, and more recently on the relative decline, of cryptocurrencies and the risks of these instruments. However, blockchain technology has far wider implications for markets and banks. To get in front of emerging challenges, the European banking industry has spearheaded some key blockchain-based platforms, including for trade finance. These initiatives have recently been backed by the European Commission, which made the financial applications of blockchain technology a central part of its 2018 FinTech Action Plan.
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CECA is a banking association committed to promoting, defending, and representing its associated companies' interests, giving them advice, and cementing their social mission. CECA's membership is made up of credit institutions, banking foundations and other associations linked to the banking sector. Ceca focuses on disseminating and promoting a new banking model, based on a commitment to Corporate Social Responsibility and Obra Social.