Bank Of America CTO: We Didn’t Find A Practical Blockchain Use Case In The Financial Industry
Bank Of America CTO Says They Didn’t Find Blockchain Use Case In The Financial Industry
The Chief Technology Officer (CTO) of Bank of America (BoA), Catherine Bessant, explained that they were not able to find any use case for blockchain technology in the financial industry. She made these comments during an interview she had with Bloomberg on May 4.
BoA Can’t Find Blockchain Use Cases
During this conversation with Bloomberg, she explained that the technology has a lot of potential but they have to yet find them in the financial industry.
About it, Catherine Bessant commented:
“I believe that there are use cases that make sense today, we have yet to find them at scale in financial services. We’re experimenting heavily, we have more partners than any other financial institution in the blockchain space, but have yet to find something that makes a difference for our clients or our customers.”
Although the claims that they believe in the potential of blockchain technology, she commented about it in a negative way a few days months ago. Indeed, she explained to CNBC that she is bearish on distributed ledger technology (DLT) despite the fact that the bank has more blockchain-related patents than any other financial institution.
Bank of America is just one of the banks that are experimenting with DLT. Santander Bank and BBVA are just two of the institutions embracing blockchain technology to offer better services to users. At the same time, there are other firms such as Ripple that are currently expanding its services to financial institutions in every single continent. That means that there are blockchain solutions that are helping companies and users to have much better services than without DLT.
As reported by Crunchbase, Bank of America has an estimated revenue of $91.1 billion. This makes of it one of the largest financial institutions around the world. Furthermore, JP Morgan Chase has already released a virtual currency called JPM Coin and it has its own blockchain network called Quorum, that is used by the bank’s clients.
In the past, Bank of America admitted that it would be necessary to increase investments in blockchain technology in order to remain competitive in a market in which digital assets and new startups are competing against traditional financial institutions.