Moody’s analyzed in April the potential downside for investors in bank bonds if blockchain technology becomes widely adopted and reduces the cost and time taken up in executing cross-border banking transactions.
Colin Ellis, managing director in credit strategy, concedes: “Banks could benefit significantly from the development and implementation of blockchain technologies in terms of enhanced efficiency, cost savings and risk reduction.”
But he points out: “The adoption of these technologies will also limit processing fees, commissions and gains on foreign-exchange transactions, which will pressure revenue.
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