The CEO’s of two major European banks pointed out how Blockchain technology can revolutionize the current banking industry, according to cryptoglobe.com
Ralph Hamers – CEO of the Dutch ING Group – talking on Monday to CNBC at the Money 2020 FinTech conference in Amsterdam said that the banking industry is getting on board with the new technology commenting:
“So, if you look at Blockchain… I think the banks are really working on this now because the potential is so huge and if the top five, six global banks would put their minds to it and agree on a standard, you could force (that) standard onto the globe… And I think that you can actually then get to a timeframe of five or six years in which this will work.”
Although cryptocurrencies are considered by the banking officials as a threat to the traditional banking system, the Blockchain technology, the technology underlying cryptocurrencies, has recently viewed by them as a positive for the industry due to its decentralized nature could reduce inefficiencies and help prevent fraud.
Carlos Torres Villa – Chief Executive of Spanish banking group BBVA – was also enthusiastic about Blockchain and declared:
“We believe there is huge promise in Blockchain, it’s early times in the technology…It really brings trust in relationships in ways that were not possible for…It really reduces the need for intermediaries, things can go faster, more transparent, more efficient.”
Adding that the bank was already put the tech to real-world use providing a €75 million loan to Spanish tech company Indra:
“We did the first bilateral negotiation and execution of a loan, with Indra…entirely in the Blockchain with a private ledger and then published that onto the Ethereum ledger, it’s [these] kinds of experiments that we’re doing to test out the tech that has such great promise.”