This 2016 is the first year in which investment in blockchain exceeded one billion dollars. According to the World Economic Forum 2019 more than 400 million will be invested in blockchain and 2027, more than 10% of global GDP will be registered in blockchain. Edward Budd on that data, digital affairs manager Deutsche Bank to assert that “blockchain is about to revolutionize the world” is based.
In an interview for the portal of Deutsche Bank , the chief executive expressed their views on the future of blockchain and how that could change finance and many other industries.
FINANCES WILL NOT BE THE SAME
The executive believes that the blockchain has the potential to transform many industries, but especially to change the business model of many segments of the financial services industry. “This is a technology that can change the structure of banking and finance, the way it is organized and performs all its operations “ he says and stresses that these changes will agree to the bank because “the terms are reduced transactions and costs are saved”
Digital affairs manager of Deutsche Bank also neglects to clients, noting that they also get benefits. “The customer will be reduced to much more manageable when errands cycles, will have greater lidquidez and control over their own finances he had ever experienced before”
However, Budd points out that there are many challenges still to be overcome before the full industry assume the changes that blockchain would entail:
Throughout this transformation, cooperation is fundamental. A strong relationship between market participants, competitors and businesses will be the key to solving the challenges around legal, regulatory and data management aspects that are needed to realize this change process
Chief Digital Officer, Deutsche Bank
THE ADOPTION COMES BUT NOT ALL AT ONCE
For the manager of Digital Affairs Deutsche Bank is not a matter of whether there will be adoption, but when the will. Forward, however, it will not be given of overnight. “Adoption is a step by step process, not a revolution. will be given with some commercially viable implementations in late 2017 and in 2018. Then it would be generalizing even further” he says and warns that “we must not forget that there are still challenges to overcome and that the market has to focus on areas such as quality product safety, legal requirements and government before the application of technology ledger distributed reach financial markets and banking transactions”
According to the executive, it is likely that the final adoption of the blockchain by the bank will take 5 to 10 years to reach. It is there that matches the data provided by the World Economic Forum, which predicted that by 2027 10% of global GDP will be stored in blockchains.
Budd also recalls that in a diverse world, the processes differ from one side to another and points out that “the adoption of blockchain vary depending on the geographies, regulatory frameworks and complexity of the assets and their implementation, including the impact on costs are as new and existing technologies to coexist for a period of time”