representative from PricewaterhouseCoopers’ blockchain branch recently declared that demand for token assets and enterprise-level solutions is still raging, but there is still a way to go on the regulatory and trust fronts.
Enterprise-Level Blockchain Solutions And “Token Assets” Are Still A Hot-Topic
Bloomberg has tackled the crypto industry head-on yet again, calling upon Grainne Mcnamara, the lead of PricewaterhouseCoopers’ blockchain division, to discuss how this fledgling market is faring in spite of troubled cryptocurrency prices.
Keeping in line with Monday’s crypto-related interview, in which the CEO of an ICO-focused startup claimed that the token offering model is still effective, the Bloomberg host questioned Mcnamara on how PricewaterhouseCoopers’ (PWC) blockchain consulting service has been performing. Surprisingly enough, the PWC executive explained that there is still demand for her employer’s services, noting:
“So we sort-of divide the world into what is distributed ledger technology and enterprise application of blockchain technology and what is happening in the cryptocurrency markets, so they are a little bit distinct… The demand for blockchain advisory services is still really, really, really strong, in a sense that it started in financial services because the idea was to take cost out, so there was a potential for a disruptive effect on that sector. But it’s actually every sector that we deal with that interested in this technology.”
The lead of PWC Blockchain went on to explain that not only are “enterprise applications of blockchain technology” still a popular subject, but the creation, issuance, and distribution of “token assets” (security tokens) as well. Mcnamara elaborated, stating:
“Of course, we saw a run-up in excitement in crypto at the end of last year, with the release of the futures and so-on, so-forth. [But] we’re still seeing tremendous excitement from issuers of potential token assets that could appear on these networks [and] we are still seeing a lot of demand from people [who are trying to figure out] the method in which they could bring digital assets to the market — how would I list them, where would I list them, what’s the appropriate market infrastructure to connect to.”
In short, Mcnamara is explaining that the “phenomena” of the token asset economy is still raging, in spite of the violent market correction and contrary to popular belief. This shouldn’t come as a surprise to some, as many proponents of this industry see a worldwide, interconnected ecosystem of security, utility, and currency tokens as the future.
Trust Issues And Regulatory Uncertainty Is Slowing Deployment And Adoption
Citing a report from PWC, as relayed by a recent Bloomberg article, the host went on to note that although 86% of the respondents in a 600-firm survey have begun tinkering with blockchain, that 54% of the aforementioned figure claimed that deploying systems based on this nascent technology “wasn’t justified.” Explaining why this is the case, Mcnamara noted that while blockchain is evidently a viable technology, firms are finding it difficult to deploy blockchain-based commercial solutions in a manner that will become profitable over time.
The PWC executive then drew attention to the fact that there are still trust issues between firms and decentralized technologies, which ironically enough are arguably the most secure systems out there, so what’s not to trust? Lastly, Mcnamara brought up the perpetually controversial topic of regulation, adding that firms are wary that governments, specifically US’ regulatory bodies, will eventually lash out at this budding industry.
Many do see the latter fear as irrational though, as Christopher Giancarlo, the crypto-friendly CFTC chairman, advised governmental bodies to take a “do no harm” approach when it comes to regulating “this new digital revolution of markets.”