New concepts around digital assets, immutable and transparent ledgers, as well as decentralisation, mean that companies are forced to rethink their current business models and incorporate the opportunities that these present to prepare for the future of both their businesses and the finance industry.
Although this technology has been around for several years, the last two years has seen a significant increase in demand for more exposure to, knowledge of, and practical use cases in the market. Some of the companies adopting and embracing this technology IBM, Microsoft, JP Morgan, and Facebook are all implementing blockchain technology and, in parallel, we are seeing several jurisdictions exploring Central Bank Digital Currencies.
It has become apparent that the two main hurdles hindering the implementation of blockchain technology are education and regulation.
Historically, the narrative that has been portrayed to the market tended to focus on the negative aspects such as illicit uses cases, hacks, and scams. As a result of this, it has created a somewhat adverse stigma around the industry which has created a sense of apprehension and among people. Here at Moore Johannesburg, we believe that this stems from a lack of quality education and knowledge being provided to customers on the fundamentals of the industry.
Regulation, which is currently in its infancy in this sector, is another contributing factor to the sluggish widespread adoption. Regulation is an imperative pillar in this market as it brings legitimacy to the industry and assists implementation. In South Africa, we are seeing the Intergovernmental Fintech Working Group (IFWG), paving the way to close this regulation gap.
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