The report, which also involved specialists from Boston Consulting Group, asks financial regulators and industry participants to take a closer look at the benefits of distributed ledger technology.
“Blockchain does hold a lot of promise for innovation, development and growth.
We must not ignore this potential, much less ban the technology.
Especially since all the necessary regulatory procedures already exist, as well as sustainability measures,” said GFMA CEO Adam Farkas.
Researchers believe blockchain could significantly speed up and simplify collateral processes in derivatives and lending markets.
It would save up to $100 billion. And smart contracts will automate and speed up clearing and settlement processes, saving another $20 billion.
The report provides an infographic on which areas could benefit from blockchain and smart contracts.
It is the settlement sphere that is the most promising for the introduction of technology. Though, the researchers note, implementing blockchain into existing systems can be quite challenging.
According to a Ripple survey, about 300 payment providers from 45 countries believe that blockchain and cryptocurrencies can improve the field of traditional finance.