Banks are non-emotional financial entities that possess significant potential to drive revolutions beyond the financial realm. There was a time when the role of banks was confined to facilitating fund movements, managing accounts, and offering financial services like loans, investments, and payment processing. In this capacity, they acted as intermediaries connecting borrowers to savers, investors to businesses, and buyers to sellers. However, banks are now holding substantial assets that could empower them to pioneer new technologies. Regrettably, their progress in this direction has been limited. As emerging technologies such as generative AI, blockchain, and quantum computing gain prominence, we appear to be accelerating toward a more decentralized world. The considerable rise of fintechs is a testament to how they are fostering competition for traditional banks.

As blockchain technology takes center stage, friction is expected to decrease while decentralization increases. In the future, global economies are poised to become more decentralized than ever before. Yet, why hasn’t blockchain achieved mainstream adoption?

Several factors contribute to the roadblock faced by blockchain. The regulatory framework varies significantly across regions, and unclear regulations and concerns about legal compliance have led businesses to approach blockchain solutions with caution. The lack of interoperability hampers seamless data exchange, causing blockchain platforms to operate in isolation. Furthermore, the challenge of user-friendliness, which is essential for mainstream adoption, is not unique to blockchain but also exists for other technologies. The cost of training employees and the capital expenditure required to adapt blockchain for businesses are additional hindrances.

Trust among the masses is another aspect associated with blockchain. Security breaches and high-profile hacks have raised concerns among banks and businesses. Reports of crypto and blockchain fraud frequently make headlines. Establishing the necessary infrastructure, as well as creating smooth and secure decentralized applications and wallets that harness blockchain’s potential, may take time.

Blockchain has the capacity to address double standards and establish a more equitable playing field across various sectors. It ensures transparency, granting all parties access to information, and once data resides on the blockchain, tampering becomes arduous. Every transaction within the system leaves a traceable record.

While the journey of making blockchain mainstream is not without challenges, progress has been made in its internal use over the past decade. Industries such as supply chain management, healthcare, real estate, the automotive sector, and notably, the financial industry, have witnessed an increased utilization of blockchain. While SWIFT took three decades to reach its current state, the adoption curve for blockchain is expected to be shorter. Even small banks are recognizing the significance of this technology and are investing accordingly.