Blockchain adoption unlikely to affect bank ratings in the near term - S&P

Standard & Poor's does not see blockchain technology having any near-term impact on assessments of bank stability, but the ratings agency acknowledges that it could deal a significant blow to traditional business models over the longer term.

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Blockchain adoption unlikely to affect bank ratings in the near term - S&P

Editorial

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In a report seen by CNBC, S&P said that the technology has the potential to destabilise existing business models, noting the huge sums of money being invested by banks across the entire business value chain.

However, widespread market adoption beyond niches applications remains a long way off it said.

"As a result, we do not see blockchain as a rating driver in the near term or even perhaps in the long term," the report states. "But we consider that, depending on the technology's eventual application and whether it takes hold in the financial industry, it could have a substantial impact on institutions' business models."

Nonetheless S&P is keeping a close eye on developments, saying it could "consider rating changes if its widespread implementation occurs faster than we currently expect, resulting in an extensive impact on financial institutions' operating models".

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Comments: (1)

A Finextra member 

ehh ... is this the same S&P giving triple-A rating to subprime junk instruments?

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