Wells Fargo, Mastercard CEOs Unimpressed With Blockchain’s Performance Despite Continual Progress
Despite Continual Progress, Wells Fargo And Mastercard CEOs Unimpressed With Blockchain Technology’s Performance, Says CNBC
Blockchain technology has made some substantial progress in the last few years, as more industries separate it from only being used in cryptocurrency. The transparent and immutable ledger creates more honesty in the marketplace. However, there are two CEOs that are working with blockchain now – one from Wells Fargo and one from Mastercard – that do not believe that the distributed ledger technology lives up to all the hype around it.
Speaking with CNBC’s Andrew Ross Sorkin at the Fintech Ideas Festival yesterday, the executives expressed that they see a long-term use for blockchain technology. However, they say it has “been way oversold,” and that the actual use case in the business sector is not clear yet. CEO Tim Sloan of Wells Fargo said that the tech is “interesting,” but the process of making it available has been “very slow.”
Wells Fargo recently performed a pilot with the Commonwealth Bank in Australia, which allowed them to examine the use of blockchain technology in the way of trade transactions. Even though they have participated in other “consortiums and pilots,” they haven’t gotten the adoption expected yet. In fact, the pilot in Australia only resulted in one transaction. Sloan commented that everyone expected blockchain to be a gamechanger for the whole industry, which has not happened. However, he is hopeful that, in time, “it’ll have an impact.”
CEO Ajaypal Banga of Mastercard seems to be a little apprehensive about blockchain technology as well, even though they are the holders of a substantial number of blockchain patents. Banga, while on stage with Sloan at the event, said that there is a chance of the fintech being “interesting,” but that there is no proof of the business model’s success, which will need to improve to gain adoption. Banga added that there are “interesting possibilities with blockchain,” but they do not see the business model yet.