Emmanuel Aidoo, the head of digital market assets at Credit Suisse, explained that culture is holding back Wall Street banks from embracing blockchain technology. Mr. Aidoo said that during an interview with Business Insider on April 23.
Banks Are Reluctant To Embrace Blockchain Technology
Banks seem to have a cultural problem that does not allow them to embrace blockchain technology. Aidoo explained that the unwillingness that banks have to adopt distributed ledger technology (DLT) lies in the culture these financial institutions have and is not related to the technology’s immaturity or few use cases.
About this issue, Aidoo commented:
“What is preventing the banking industry from rushing into it? I think it’s mostly culture. I think the tipping point is about having an entrepreneurial culture, a willingness to push people to keep asking why.”
Aidoo has also mentioned that there will be new meaningful rollouts of blockchain-based products in the market. Indeed, there are some financial institutions that are already releasing blockchain-based products. One of these banks is JP Morgan Chase with its blockchain network Quorum and its virtual currency JPM Coin. The JPM Coin is expected to be used among partners of the bank to reduce transaction costs and times.
Back in February this year, Credit Suisse and the Portuguese Banco Best completed a blockchain fund transaction, showing that there are potential implementations in the financial sector for DLT. Moreover, ING has also worked side by side with Credit Suisse in order to complete the first live transaction of €25 million in securities using the R3 Corda platform.
Ripple is one of the largest companies working in the cryptocurrency market that is offering services to financial institutions. There are already 200 firms that partnered with the San Francisco-based firm. The main services offered by Ripple are related to cross-border payments and transactions.