The integration of blockchain technology into the mainstream financial system could reduce bank run risk. If that is right, certain US regulators should consider modulating their approach and devoting further resources to fostering a healthy adoption of blockchain technology within the financial system.
In a Journal of Risk Management in Financial Institutions article, attorneys explore the potential capacity of blockchain technology to curtail widespread risk in the financial system, suggest that blockchain technology has significant power to act as a risk mitigant, offer practical observations as to how blockchain adoption could improve the risk profile of financial systems, and conclude that the promise of blockchain technology in this regard should spur US regulators to foster and promote the growth of blockchain.
The article was authored by litigation & enforcement counsel Mark Cianci and litigation & enforcement associate John King.
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