Blockchain Use in Finance Still Faces Major Challenges: Chinese Researcher

The use of blockchain technology in the financial sector still face many challenges according to a major Chinese researcher, local news agency Sohu reports on April 12.

Wei Kai, head of blockchain research at the China Academy of Information and Communications Technology (CAICT), described roadblocks to the technology's further adoption at a 2019 meeting of the International Chamber of Commerce (ICC) Banking Commission.

According to Wei, despite blockchain’s potential to transform a number of industries, tech disruptors have not solved three major problems in regard to the financial sector at the current stage of blockchain adoption. The researcher argued that the blockchain community has yet to work out such problems as data privacy, operability, as well as blockchain’s ability to be integrated with enterprise systems.

Kai also noted other important issues such as coordinating regulatory approaches between different jurisdictions worldwide.

With that, the blockchain expert still noted that blockchain tech has the potential to transform the banking industry, as well as to bring benefits to other industries such as manufacturing, transportation, medicine, government, and others.

Established in 1957, the CAICT research center operates under the Chinese Ministry of Industry and Information Technology.

Recently, Big Four auditing firm KPMG published a survey showing that most finance and tax executives do not consider using blockchain technology, with 67% of respondents claiming that they were not using the technology at the time of the poll.

On April 9, the developer of community website StackOverflow found that 80% out of 90,000 developers worldwide are currently not using blockchain technology.