The Blockchain West Summit focused on enterprise applications, healthcare, Commerce, identity, security, and public or private blockchain. From this point of view, the head of IBM Blockchain Jesse Lund and technical Director of Stellar Development Foundation jed McCaleb made their views on changes in financial services at the summit.
Jesse Lund began by saying that the infrastructure supporting global financial services has not changed in the last 30-50 years. He said:
“I do not know anyone who would love to go to the Bank. Large banks have become so large that they have lost touch with their customer base and how young generations think and interact with money.”
In response to the high expectations of users and the decline in consumer confidence, in his opinion, there was the industry FinTech. In addition, he believes that over the past 10 years, non-Bank companies and startups from Silicon valley have released products that affect the income flows of large banks. Other industries, such as manufacturing and retail, have already been affected by the disruption of technology and the Internet.
“The deadly spiral they got into is not their fault. This is the situation when the demand for better, faster, cheaper financial services is growing, and on the other hand, there is an increase in regulation, and large banks spend billions of dollars to comply with regulatory requirements.”
Bitcoin is a one — of-a-kind blockchain app
According to Lund:
“Bitcoin is such an original option that I would look for in traditional financial services, however, it raises concerns in the form in which it is now.”
On the other hand, bitcoin and other cryptocurrencies make the sane population realize that banks are no longer needed. Although banks may not need to be directly involved in the exchange process, he believes that they are necessary for economic growth.
Lund says Central banks ‘ reaction to the cryptocurrency industry has been positive, leading to a deeper exploration of digital assets.
“They consider the choice between two equally unacceptable options, one to ignore cryptocurrencies, and the other to ban them altogether.”
Jed McCaleb said:
“The problem today is that there are different payment networks and they do not interact with each other, which leads to large delays.”
This problem can be solved by using bitcoin. It sheds light on another problem that people cannot exchange money as there is a huge variety of different currencies. However, he says that this can be corrected, and explained how Stellar might represent currency in a digital form.
“Stellar has a concept whereby you can move the dollar or the Euro, or even bitcoin, and it will launch the electronic version into the Stellar network.”