The main advantage of blockchain technology in the financial sector is the intermediation and significant cost reduction.
First of all, the financial industry now needs to conduct layers of audits to control financial risks due to prevention of single points of failure and systemic risk, but this also results in high internal costs. And as a result of the ever-increasing regulatory regulations, especially as the financial crisis in 2008 led to rising thresholds for financial regulation and control, the extent of the anti-money laundering and anti-terrorist financing led by the war on terror led to a gradual expansion in the scope and depth of regulation, resulting in the entire financial The regulatory costs of the system have dramatically increased.
First of all, the financial industry now needs to conduct layers of audits to control financial risks due to prevention of single points of failure and systemic risk, but this also results in high internal costs. And as a result of the ever-increasing regulatory regulations, especially as the financial crisis in 2008 led to rising thresholds for financial regulation and control, the extent of the anti-money laundering and anti-terrorist financing led by the war on terror led to a gradual expansion in the scope and depth of regulation, resulting in the entire financial The regulatory costs of the system have dramatically increased.
Why do you ask a question and then you are answering your own question?
I think that the main advantage of blockchain adoption in the financial industry would be the increased level of security.If all the sensitive financial info is kept in decentralized servers,it would be harder for the hackers to steal all the information.There might be some cost reduction after the blockchain adoption.Many bank clerks might lose their jobs,but there`s no way to make the financial system fully automatic.
