BlackRock’s Turnill sees “promising” potential for blockchain technology

BlackRock, the London-based financial institution, still sees cryptocurrencies as too volatile for all but the most adventurous of investors, though the investment company is warming to the long-term potential of the underlying blockchain technology. The secure distributed-ledger technology that forms the basis of transactions with digital assets such as Bitcoin may offer “disruptive potential” for a wide range of industries from logistics to pharmaceuticals and financial services, according to BlackRock’s global Chief Investment Strategist Richard Turnill. However, it needs to overcome significant hurdles to reach its “promising future,” he said. “Cautious on Bitcoin and bullish on the underlying blockchain technology – this is an emerging consensus among policy makers and business leaders,” Turnill said. While financial databases based on the system could eliminate inefficiencies and risks associated with human processes, “a massive shift in software development and a well-constructed maintenance model” would also be needed, Turnill said. He also explained that regulators and central bankers need to play a role. [Bloomberg]