CFO Boost? EY Predicts Blockchain Could Change C-Suite Role

"Big four" professional services firm Ernst & Young suggests that blockchain technology could transform the firm's finance operations and redefine the role of chief financial officer in a report published last week.

"Blockchain could revolutionize the way finance function operates," the report reads.

The report identifies CFO-related blockchain uses cases, noting that the technology can help executives meet objectives such as "Getting your house in order," business development and communication with the external marketplace.

The report also argues that the transparency provided by blockchain technology could have an impact outside the organization too, allowing competing firms to have access to each other's information, facilitating a more "Collaborative and multi-enterprise environment."

The authors caution that blockchain is still a nascent technology and, as such, its potential is not fully understood.

The report reads, "Organizations should make sure they are not comparing the theory of blockchain with the practical nature of technology implementations."

"That is, rolling out a blockchain across all functions with seamless integration would certainly solve a lot of problems, but many of our clients struggle to implement enterprise-wide data warehouses, let alone a distributed database or network with all the associated maintenance difficulties."

A paucity of knowledge about blockchain tech is also likely to encumber its adoption, EY said.

The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies.

CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.