Blythe Masters, the former executive of JPMorgan Chase & Co., is resigning as CEO of Digital Asset Holdings. This comes three years after it has joined a great fanfare with much anticipation of cryptocurrencies and blockchain technology.
However, as demonstrated by 2018, last year's crypto-bubble broke out, as did that of the blockchain. At least this is the realization of many organizations that have piloted the technology.
Masters claims that timing was right for her to resign
The former banker who was credited with inventing the credit-default swap said he had made the decision because of his personal reasons. However, in commercial terms, it seems that the time has come since the crypto-bubble has exploded. The cryptography market has lost more than 80% of its value this year.
At the time of his appointment in 2015, Masters was the face of the Blockchain philosophy in which many believed that there was a technological infrastructure that could be cleaned and used by blue-chip companies like banks.
The rise to the prominence of cryptocurrencies meant that more people paid attention to the underlying technology that supported them. There were huge promises that saw companies jumping on the blockchain bandwagon. And it is here that the Masters played a crucial role. He helped translate the technology into a story that bankers could understand.
Some of the reasons why many companies have resorted to technology have included wanting to reduce their costs, improve their technology and even look stylish to ensure they attract intelligent graduates who would otherwise have gathered on Google.
Thus hundreds of pilot projects and dozens of consultants have been created. Some have predicted that 10% of GDP would have been on the blockchain by 2027, while others have talked of billions of dollars in terms of transaction costs saved.
However, as many are now realizing, the problem is not the idea, the problem is the implementation of the concept. Given that many banks find it difficult to manage simple IT updates, it is naive to expect the same institutions to lead the next technological revolution.
Already, the harsh reality has hit an entrepreneur. He told Bloomberg's Lionel Laurent "We tried the blockchain for about a day, it all became three times slower, so we stopped."