Bank Of American CTO Secretly Bearish On Blockchain Tech; ‘Show Me The Use Case’
Bank of American's Senior Executive Catherine Besssant Bearish About Blockchain Tech
For a while now, the Bank of America (BoA) secretly gears and equips itself for the future in which the world’s finance sector might start making use of blockchain.
Under the supervision of Catherine Bessant (a senior executive at Bank of America), BoA has acquired the most patents over the years when it comes to technology than any financial company in the world and creating new inventions supported by blockchain technology.
But now, Bessant says she’s bearish on blockchain – the primary system that backs digital assets such as Bitcoin, Ethereum, and the likes. She, recently, stated to CNBC how doubtful she is if cryptocurrency will amount to anything in the future.
In a recent interview, Bessant said that although banks might have their very own view on this, her personal opinions are different.
“What I am is open-minded. In my private scoreboard, in the closet, I am bearish.”
The Bank of America’s CTO Catherine Bessant is pushing her way into the debate about blockchain, projected to have more importance soon. A blockchain is a secured database that operates on different computers, thus, removing the importance of financial institutions like banks (or other centralized institutions) and ensuring safe contracts between various parties.
Subsequently, even though blockchain keeps proving its use-cases these days, an economists Nouriel Roubini tagged it as the most over-hyped phenomenon in the technology world. On the other hand, other experts stated that blockchain only needs more time to show more use-cases and take over the world.
It is important to note that even though the passion for blockchain is not what it used to be in the past due to the bearish trend in the crypto market, lots of attention and monies are still channeled into blockchain startups.
Bessant: “No Use-cases Of Blockchain Has Moved Beyond A Small Scale Of Transactions.”
Bessant was regarded as the most powerful woman in the banking industry last year; she supervises more than 90,000 tech-workers. And, of course, she also manages BoA’s global technology and operation division for nine years now (since 2010).
J.P Morgan Chase created its own cryptocurrency for the first time and has the major backing of a U.S. Bank to enhance payments through blockchain. But Bessant has come out to say that the use-cases of blockchain do not make any sense as many institutions are only improving upon existing technologies.
The BOA senior executive says,
“I haven't seen one use case that even scales beyond an individual or a small set of transactions,”
“All of the big tech companies will come and say ‘blockchain, blockchain, blockchain.' I say, ‘Show me the use case. You bring me the use case, and I'll try it'.
She also stated:
“I want it to work spiritually; I want it to make us better, faster, cheaper, more transparent, more, you know, all of those things.”
In Bessant’s view, Blockchain only needs only to face great tests before it gains reliability.
“I will be curious to see what the actual volume of usage is on the JPM Coin in a year.”
Overall, different views on blockchain stir today, and lots of experts continue to query if its potentials can live up to the hype around it.