International Business Machines (IBM) VP of global blockchain market development, Jesse Lund, believes that blockchain has to transform power as far as financial services are concerned. His views assumed importance for several reasons. For instance, the company has been applying for blockchain patents for quite some time and remains the leader in getting the maximum number of patents. Also, there are growing views that a number of pilot programs have not made any significant progress through several financial firms are exploring emerging technology.
Lund was talking to media recently focusing on the future prospects of the blockchain, payments with new-age technology and stable coins, ambcrypto.com reported. When questioned as to what is the biggest opportunity, he pointed out the transformation power of the technology. The IBM executive said that from his routes, he could see the power of the emerging technology to transform the financial services. This could be interpreted as other industries that will not likely have the same kind of power.
The Blockchain executive thinks that banks are slow in adopting blockchain technology initially. However, he expects rapid growth in the sector once the banks started to look at it and adapt it. Lund thinks that currently, the payment system lacks efficient infrastructure in the world and that blockchain could address the issue in the global payments market. He pointed out that in the last five decades, there was not much investment in global infrastructure for payments and thinks the emerging technology could be the tipping point.
Lund thinks that with blockchain, there is an opportunity to disrupt the global payment system in a positive way. Though he has expressed his concern over the volatility in the cryptocurrency prices, he is confident that it would work itself out in the end. Pointing out the resistance of paper money adoption, he thinks that cryptos are also facing a similar kind of situation now. As far as a stable coin, its role is to offer stability.
Lund said, “So, instead of using an unknown asset like a pure cryptocurrency, what you are using is a digital version of real fiat currency and.. well… I don’t think that’s any better than cryptos and I think ultimately cryptos will catch on and become transactional instruments themselves. I think it provides a bridge to help people get to this next level.”
Lund has talked about the collaboration with Stellar and pointed out that digital coins’ use cases are many pointing out the cross-border transactions, which are processing on a real-time basis. He termed it as the real value proposition for the end-user. The IBM executive viewed that strongholds have acquired the American Greenback to the blockchain. That would mean that investors could trade the USD or use them for the transactional instrument.
The executive was categorical when he said that blockchain is yet to reach its end though some might believe that it has already peaked. Lund indicated that the company is still going forward with blockchain though there are no sufficient resources to respond. He said that the buzz might have peaked a bit through the app still has potential.