Recap: Blockchains + Digital Currencies Conference in NY
The Blockchains + Digital Currencies conference was held on July 28, 2016, in New York. Leaders and entrepreneurs in the banking and fintech industries discussed how blockchains and cryptocurrencies, such as Bitcoin and Zcash, can help reengineer banking processes and provide faster and more securefinancial transactions, as well as cut costs by billions of dollars.
Also read: Datt Rebrands to ‘Yours’ with Trustless BTC Micropayments
Banks Struggling to Keep Millennials
One of the many topics discussed at the conference was how to use blockchain technology to speed up the flow of money globally and make business processes more efficient and transparent. The importance of blockchains in the banking system is ever increasing.
Indeed, as participant Eileen Lowry Program Director, IBM Blockchain Offerings, tweeted:
10% of global GDP will be stored in a blockchain by 2027.
Traditional banking processes have become obsolete, and therefore they are unable to support the new economy. Banking transactions are still expensive and too sluggish. Although they are trying to catch up now, banks have been slow in adopting mobile banking. As a result, customers, and millennials in particular, are moving away from banks and preferring to perform their financial transactions using their smartphones.
“Many millennials are opting out of the banking system,” warns Victoria van Eyk, Management Consultant, Bitcoin Strategic Group. “They do not even want to use credit cards.”
Various Blockchain Models Discussed at Conference
Therefore, banks are trying to bring themselves up-to-speed by exploring full steam the potential of blockchains. For example, at the recent Blockchains + Digital Currencies conference, Eddie Ortiz, VP Solution Acceleration and Innovation, Royal Bank of Canada (RBA), mentioned that the RBA is actively looking at different blockchain models.
He asserted that the promise of blockchain technology is quite significant. By using blockchains, banks will obtain the standardization necessary to allow for easier and simpler communications. Moreover, “Blockchain allows connecting business processes more easily,” Ortiz said.
Panelists also tackled concerns about the slowness and costliness of cross-border payments and how blockchain technologies can help.
Caitlin Long, Investor and Advisor, said that many institutions are looking for cheaper ways to move money because many banks (for example, banks in Barbados) are being cut off from correspondent banks. Correspondent banks are essential for facilitating cross-border transactions, such as remittances and international trade.
Additionally, co-panelist Graham Warner, Director, Americas Head of GTB, Product Development Deutsche Bank, said that Deutsche Bank is working on the development of smart contracts and anticipated that “soon there will be amazing ways to move money.”
Simplifying Cross-Border Payments
Another speaker, who is a major player in the micropayment and remittance industry, was Bill Barhydt, Founder and CEO, Abra. He explained how he solved the problem of moving money globally. He worked on the problem of exchanging money internationally for over ten years until he found the solution: The elimination of intermediaries and the use of Bitcoin blockchain technology and smartphones.
