Bitcoin company Uphold CEO dislikes banks' involvement in blockchain

Banks appear to be very interested in blockchain, the technology that underlies bitcoin.

Blockchain technology has the potential to make financial transactions faster and with lower transaction fees, and can be used in many innovative fields (from stock issuance to diamond trading).

22 of the world’s leading investment banks have formed a partnership to explore how blockchain technology can be applied to traditional banking.

But安东尼•沃森finds this practice of banks very ironic. Anthony Watson has been in the banking industry for 12 years and has worked in banks such as Citibank, Wells Fargo, and Barclays. He was once the head of Barclays' technology department in Europe, the Middle East and North Africa. Now, he is the chairman of the Bitcoin startup Bitreserve (now renamed Uphold   ).

Watson told Business Insider:

"This is the most ironic thing I've ever seen. The purpose of the banks doing this is to form alliances and prevent others from innovating. This is what banks often do."

Watson believes that banks are currently trying to build their own internal proprietary blockchains not for the convenience of their customers, but for their own benefit.

He said:

"The changes brought about by blockchain are fundamental. It will threaten the business model of banks and may make it impossible for banks to charge people high transaction fees. So they are forming alliances to hinder people from innovating. This approach is very ironic."

Several banks, including Barclays and Santander, are entering the booming fintech sector through investments or mentorship programs, but Watson believes that these actions by banks are just out of self-interest.

“They can study blockchain and try to control it, but I don’t think they will succeed. The business model of banks today is fundamentally different from 10 years ago, which shows that the banking system is not a sustainable business model.”

Original article: http://uk.businessinsider.com/banks-approach-to-bitcoin-is-cynical-says-an-ex-barclays-tech-chief-2015-10
By Oscar Williams-Grut
Translator: Bibit
Editor: printemps
Source (translation): Babbitt Information