The document discusses the implications of blockchain technology on covered bonds, highlighting an optimistic view from Moody's despite significant barriers to adoption. Covered bonds, which are debt securities backed by cash flows from mortgages or public sector loans, may benefit from blockchain's transparency and security features. However, Moody's emphasizes that the industry faces major hurdles, including regulatory uncertainties and integration challenges with existing financial systems. The forecast suggests that while blockchain could enhance the efficiency and safety of covered bonds, the slow pace of regulatory acceptance and the need for technological adaptation may delay widespread implementation. Stakeholders must navigate these complexities to harness the potential advantages of blockchain, particularly in improving transparency and possibly reducing costs.

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