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The supporters of Blockchain are tired of trying to convince others of the potential of technology, but they are still busy exaggerating.
"We may be a little further ahead of ourselves with the reason why not everyone is still on the blockchain," Amber Baldet, co-founder and CEO of Clovyr, told the public at the American Banker's Block Bank conference. New York. "It will take some time."
As for exactly how much, the answer is complicated.
Although blockchain has proven useful in a wide variety of circumstances, particularly in the financial services arena, many bank executives and regulators still link technology to the volatility of cryptocurrency prices. The recent sharp decline in Bitcoin prices only makes the impression worse.
As of Friday morning, the value of the most famous cryptocurrency had fallen by more than $ 5,500 in the last year. The price has recently reorganized, but its continued volatility has led bank executives and regulators to question cryptocurrencies and anything associated with blockchain technology.
Supporters of Block F | blockchain S have agreed that concerns about the volatility of cryptocurrency are complicating the adoption of technology.
Fidelity is one of the few big financial services companies to embrace and experiment with blockchain technology despite the general volatility of cryptocurrency. Tom Jessop, Fidelity's digital resources manager, said in his introductory speech that the company has done "basic research and development" with blockchain over the past five years.
Cryptocurrencies and blockchain technology are "a very powerful development," said Jessop. "We will look back in history and say that this was a very important event not only in finance but in history".
One executive acknowledged that blockchain advocates will find better success by mitigating the rhetoric of technology.
Christine Moy, who heads the Blockchain Center of Excellence at JPMorgan Chase, said that while senior leaders see the "transformative" blockchain, a measured approach to what technology can do for specific divisions within a bank must be taken into consideration.
"We realized that not everything had to be on the blockchain," he said.
"What contributes to the slow pace of progress" in the adoption of financial institutions "is that we are a large organization with a reputation with the clients we need to take care of," said Moy. "It's not like with other startups in space that can break things and apologize later."
"If we've just lost hundreds of millions of dollars, we can not simply apologize and learn from mistakes," he said. "There's a reason we trust ourselves because we've built this trust, it's how we do things, we might not be the first to reach a place with blockchain technology, but when we get there it will be the right path because we thought about it. "
Blockchain supporters also need to sell regulators on the potential of technology, observers said.
Jochen Dürr, Chief Risk Officer and member of the SIX Executive Committee, said his banking services company takes a collaborative approach with regulators in Switzerland and across Europe.
"Our approach is to move forward with the regulators," said Dürr. "We take them along the process."
Ram Komarraju, head of innovation and supply of solutions at CLS, a provider of infrastructure for the financial market, warned managers not to reject this concept because regulators, particularly US ones, can be useful with certain policies.
"There are a couple of areas where regulators are trying to help," he said. "One of these is to bring clarity to a certain terminology." Komarraju said he appreciated that regulators are "publishing some precious thoughts" on topics such as tokenization.
Komarraju also said that executives should keep an eye on the way in which various governments experiment with blockchain, cryptocurrency and legal tender.
He pointed to the Bank of Canada's experiments with cryptographic versions of legal currencies. The Bank of Canada has stated in the past that central banks could take advantage of this approach.
Observers continue to preach patience with the adoption of blockchain because the technology will undergo more iterations.
"With blockchain, based on what technology can enable, you're working with something that can rewrite rules, rewrite relationships," Moy said. "It will take a long time, but it will be felt soon, if that makes sense."
