Stellenbosch University: Blockchain adoption will allow banks to maintain their role in society

Researchers at Stellenbosch University in South Africa are advocating for banks to embrace the disruptive potential of blockchain technology. They argue that blockchain has the power to revolutionize the financial industry by eliminating the need for intermediaries and offering enhanced security, privacy, and traceability. As a result, traditional banks could transition into specialized service providers, rather than being the primary facilitators of value transfer. The researchers caution that failure to adopt blockchain could pose a significant threat to the banking industry. While some large international banks have recognized the transformative potential of blockchain and are actively exploring its implementation, regulatory uncertainty remains a major obstacle. The current regulatory framework primarily focuses on physical assets and is ill-equipped to address the complexities of virtual assets. The head of the Bank for International Settlements has also emphasized the importance of blockchain and central bank digital currencies in reshaping the global financial system.