Royal Bank of Canada: Blockchain technology has been developed enough to meet some of the needs of the financial market

According to a research report by the Royal Bank of Canada (RBC), blockchain technology has been developed enough to meet the key needs of certain parts of the banking and financial markets. The bank believes that the asset-backed securities (ABS) market, including mortgage-backed securities (MBS), is likely to be disrupted by the blockchain. These types of securities bring together assets such as mortgages, auto loans, student loans, credit card receivables, and equipment leasing. The report stated that one of the most important advancements in blockchain technology is the transformation of the “consensus mechanism” from an energy-intensive proof of work to a more energy-efficient equity proof mechanism. The acceptance of a universe composed of multiple “interoperable blockchain protocols” has also led to the development of more professional blockchains, which have brought greater scale and speed, as well as greater flexibility and Autonomy. The report added that given the pace of development of blockchain technology and how it does not fully comply with existing legal and regulatory definitions, “the regulatory landscape is very unstable”. (Coindesk)