A recent MIT study has shown that the blockchain is the most important technology to solve the problem of money laundering and terrorist financing.
According to MIT’s report, the blockchain allows for the transfer of ownership of any type of asset, such as digital currency, to any party, even those with no real interest in the asset.
Accordingly, the researchers found that the cryptocurrency could be used to reduce the risk of money-laundering and terrorist finance, and also improve financial efficiency.
“By eliminating intermediaries, there is a much higher chance of a transaction being approved and executed, and the amount of money required to be transferred to a destination is reduced,” explained Dr. James S. Robinson, the study’s lead author and an associate professor in the MIT Department of Electrical Engineering and Computer Science.
“Furthermore, the transaction can be completed in a very short amount of time.
This greatly reduces the need for banks to be involved in transaction processing, which reduces their profits.”
In fact, the MIT researchers found a large number of businesses, including those that process and maintain cash, have already made this shift.
In a statement, Robinson said, “The blockchain has the potential to change the way money is moved, and it can also help us reduce risk.”
Robinson also said the blockchain’s decentralized nature can be exploited by “anyone, anywhere, to perform any task, from the transfer and storage of funds, to the exchange of information.”
He said that in the future, blockchain technology could be useful for many purposes, including the creation of online services that allow for the settlement of disputes or for financial transactions.
The MIT researchers wrote that while the blockchain could be helpful for some of these applications, it will not solve all problems.
“In many ways, the future of money is going to be more complicated than it has ever been before,” Robinson said.
“For example, the technology will need to adapt to the new requirements of digital currencies and other new technologies, which will need more and more processing power and processing speed.
As more and less money moves through the financial system, more and better ways of transferring value are needed.”
Rob Robinson, who led the research, was named one of Forbes “50 Most Influential People in Financial Technology” in 2017.