Ferdinando Ametrano, a professor at Politecnico di Milano, Italy’s largest tech university, recently criticized the blockchain hype revolving around banks in an interview at the Blockchain Money conference, describing the efforts of banks and financial institutions in creating a blockchain without a native digital currency as nonsensical.
Over the past two years, the world’s largest banks and financial institutions have led the development of permissioned blockchain networks and enterprise-grade blockchains for cross-border payments and settlement of asset.
Various research firms including Greenwich Associates stated that nearly US$1 billion is spent on the development of the blockchain technology in capital markets and the financial industry every year. Yet, banks and financial institutions are yet to demonstrate a working commercial application of this blockchain technology.
The fundamental issue in the approach of banks towards the blockchain technology is, they haven’t found a way to integrate a decentralized system or a network like blockchain technology onto existing financial services.