The BFSI sector is undoubtedly one of the largest industries to adopt blockchain technology. HashCash CEO Raj Chowdhury acknowledges blockchain’s inherent ability to prevent fraudulent transactions describing how the features play an important factor in the worldwide adoption of distributed ledger technology, especially in public financial systems.
Blockchain Adoption in the BFSI sector
According to researchers, the worldwide blockchain expenditure will soon reach $67.4 billion by the end of 2026 at a CAGR of 68.4%, contributing up to $1.76 trillion to the global GDP by 2030. One of the top sectors of blockchain technology is the banking and financial sector which contributes to around 30% of the total expenditure. Other than preventing fraudulent activities, blockchain technology is utilized to facilitate instant settlements, smart contract enforceability, manual errors, capital optimization, reduced counterparty risks, and reconciliation, and provides increased transparency.
Prominent blockchain pioneer, and CEO of HashCash Consultants, Mr. Raj Chowdhury asserts, ”The performance of decentralized blockchain architecture is proportional to the number of available network members. The underlying crypto platform offers real-time transaction visibility based on permissioned access along with hassle-free provisions for eKYC and auditing, leading to improved overall service.”
Blockchain utilizes several security layers and high-end secure data encryption. The data shared in the network is only available for the members permissioned within the network. All the data once added to the network is stored in the form of data and time, which makes it immutable. The data cannot be changed or deleted by any individual which automatically decreases the chances of any fraudulent activities. In case of any such attempts, it is immediately flagged keeping the data intact.
“Innovations such as blockchain empower public finance managers with greater visibility and control of public fund utilization in real-time. Efficient use of public money will lead to improved services for the public, economic boost, and improvement of the community as a whole”, states Chowdhury. He has previously acknowledged the potential of blockchain technology in reducing the Indian logistics cost, and the potential of cryptocurrency in Latin America.
The rise of blockchain as one of the most disruptive innovations is driven by several applications and practical benefits across industries. Several organizations around the world can facilitate the technology for great opportunities and outcomes for enterprises.