Blockchain has been billed as a more efficient technology that could potentially save billions int he financial services industry; a new report by Greenwich Associates says the technology has potential but when it comes to real-time gross settlement there is no cost savings; in fact the report says because the need to pre fund deals it is actually a giant step backward; FT Alphaville quotes from the report, “From the standpoint of secure, accessible books and records, DLT represents an important step forward. From a funding perspective, it is a gigantic step backward.”; FT Alphaville points out that credit is required at almost all commercial interactions and blockchain right now looks to be too narrow of a banking model. Source.
