In a recent report by BBVA Research US, the bank noted the potential disruption of the blockchain technology could reach far beyond payments, effecting all financial assets that have already been digitized. BBVA recognizes the inherent risks, but states it is a matter of time till the technology reshapes the industry.
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BBVA says blockchain tech could replace centralised finance systems
the application of blockchain technology would first be useful in the payments space, where it would eradicate the need for any intermediaries and significantly reduce costs for banks. However, decentralised public ledgers could disrupt the financial system as a whole, adds the report. "Given that the majority of financial assets such as bonds, equities, derivatives and loans are already electronic it may be possible that someday the entire system is replaced by a decentralised structure."
