Financial Institutions To Bring Better Business Models With DLT
The 6th European Blockchain Convection saw an insightful discussion on DLT and the future of financial institutions. After a few years of experimentation, use cases are coming up that are helping streamline the processes for these institutions, even though some experts believe they should get brave and come up with new revenue/business models using the technology. In retrospect, Juan Jimenez of Banco Santander and Alastria admits that jumping into payments wasn’t the ideal use case for DLT among financial institutions. Not much progress has been seen on that front despite many institutions partnering with the likes of Ripple to access their almost instantaneous and cheap money transfers across the border.
Visual of Mai Santamaria, Sebastian Kraft, Juán Jimenez and Tanya Shastri at the 6th EBC
Private And Public Networks Will Be More Interoperable In The Future
The use of blockchain within financial institutions is now disconnected, according to Sebastian Kraft of Commerzbank, who describes it as “solitary islands” that need to come together and collaborate in order to achieve efficiency. It’s a statement backed by Tanya Shastri of VMware, who believes the future of DLT among financial institutions will be a combination of private permissioned networks and public networks that have “good reasons to be interoperable in certain areas and good reasons why they should operate separately in other areas.” For example, in terms of performance, some might want high throughput or low latency or different levels of privacy and so on.
“The future of DLT among financial institutions will be a combination of private permissioned networks and public networks that have good reasons to be interoperable in certain areas and good reasons why they should operate separately in other areas” – Tanya Shastri, VP of Blockchain Products at VMware
Panel discussion Visual elaborated by EBC team
Jimenez believes that more players will come in once the DLT infrastructure is available, combined with clear regulation. Then the space will witness real innovations just like it was the case at the beginning of the internet. The likes of Google, Amazon, Facebook, and many other prominent companies of today were able to thrive by relying on existing infrastructure and being bold enough to come up with better use cases for the internet.
“More players will come in once the DLT infrastructure is available, combined with clear regulation. Then the space will witness real innovations just like it was the case at the beginning of the internet.” – Juan Jiménez, Digital Public Policy Director at Banco Santander and CEO of Alastria
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Published December 23, 2021, Barcelona