SIFMA Conference’s Bank of America Speaker: Blockchain is Years Away from Significant Benefits
Blockchain And AI Are Not Living Up To Expectations – Financial Leaders
Apparently, the market is not yet ready for the mainstream adoption of blockchain technology and artificial intelligence. This is the stance adopted by speakers at the SIFMA and Commodity Futures Trading Commission conventions. According to them, the potential benefits of fintech are light years away from realization.
At the SIFMA conference, Cathy Bessant, the COO and CTO of the Bank of America, said that the impact of blockchain technology does not match the hype around the matter. Cathy acknowledged that blockchain technology has enormous potential, but added that it is yet to prove its usefulness to consumers. Specifically, she stead that the technology is still in development and is thereby unproven.
Concerning AI, Cathy heavily criticized the obsession with expert systems. In this regard, she stressed that AI is a creation of human intelligence that should never be considered as a better alternative to the human brain. Bessant is among the most powerful businesswomen in the world.
The Arguments Against Fintech
Besides blockchain and AI, robotic advice was also a matter of intense debate at the SIFMA conference. To this end, Chris Wilcox, the CEO of JP Morgan Asset Management, said that this fintech discovery is still in its early stages. Chris believes that robotic advice is too limited to be depended upon in making major decisions. According to him, robots can presently perform easy tasks such as recommending books to consumers.
Interestingly, fintech was deemed as an obstacle in gauging the impact of technology on the global finance industry during the CFTC and SIFMA meetings. This argument was raised by Daniel Gorfine, the Chief Innovation Officer at CFTC who is also the director of LabCFTC. Daniel argued that the term ‘fintech’ is too general, and urged the attendees to focus on specific topics.
Another matter that was discussed in both conferences is the prospect of creating sandboxes for fintech firms. Here, Valerie Szczepanik, a Senior Advisor for Digital assets and Innovation at the SEC, said that the regulator has already created a sandbox and was awaiting the decision by creators of fintech companies. Rostin Behnam, a commissioners of the CTFC, appeared to oppose the introduction of sandboxes, saying that business would like to maintain the status quo because they have heavily invested in training their staff and acquiring the fintech infrastructure.