Blockchain Turning Finance ‘On Its Head’
That’s **Blockchain** of course….not that other ‘B-Word’ that the bankers dare not speak. Swiss Central Bank President and Chairman Thomas Jordan read the encrypted writing on the wall to 8,000 banking industry suits at the opening of the Sibos Conference.
“Such systems could render the reconciliation of transactions and balance data between banks and the third-party system obsolete. The paradigm seems to have been turned on its head. Decentralization, not centralization, now appears to promise the greatest efficiency gains.”
Jordan also gave this disclaimer lest anyone think he’s *advocating* such shenanigans:
“The Swiss Central Bank is neutral vis-à-vis the technologies underpinning financial market infrastructure,” said Jordan. “It assesses innovation in terms of their implications in terms of their fulfillment of its mandate.”
He was followed on stage by Swift CEO Gottfried Leibbrandt who reassured the assembled bankers that they could harness all of this blockchain mumbo jumbo for their benefit. After talking about some Swift innovations he added:
“Who knows, some of them may be enabled by that same blockchain. We’re certainly looking at that as an underlying technology as well as other technologies, to keep enhancing that service.”
Sort of how Blockbuster Video was able to enhance their existing revenue model with streaming video. Er…wait.