Banks investing more in blockchain than tech companies
Banks were once sceptical about blockchain technology, but now – having recognised it as an existential threat to their businesses – they are leading the way in its development and implementation.
Banks are investing more in the blockchain than the tech companies, because they see it as a bigger threat to their business, according to Shidan Gouran, president and CEO of Global Blockchain, an investment company focused on blockchain-related companies.
“Banks know if they lose the battle with this technology they will go the way of Kodak,” he says.
Blockchain technology promises to radically change the services banks offer their clients and the way those services are offered. It will allow banks to see how the funds they disperse are being used, helping them tailor and improve their services, while making key business lines – particularly things such as payments and trade finance – more efficient.
Gouran says: “The blockchain is currently at around the same stage of its development as the internet was in 1993. There is a long way to go. But banks are currently leading the way because the technology they are building is already scalable, meaning it will be commercially useful within the next five years.