The evolution of Bitcoin technology from being just a ledger to the next big innovation in the fintech sector has waken up the finance giants. Banking majors like the Commonwealth Bank of Australia (ASX:CBA) have come to realize the importance of constant innovation, and how it may affect the long time survival of the institution.
The banking sector has been dependent on legacy systems for too long. Until the appearance of blockchain technology, there wasn’t much innovation happening in the banking and financial sector. The CEO of Commonwealth Bank of Australia, Ian Narev has publicly confessed the need for innovation by clearing up the misconception among many of his counterparts who believe that innovation works best for startups and it is of least concern for bigger companies.
Narev was addressing a group of business leaders in an event organized by The Centre for Independent Studies, a free-market think tank when he said that Bitcoin and Peer-to-Peer lending may not be as disruptive as it is considered to be in the short term. However, over a period of 10 years, these technologies many play an important role in the global macro as well as micro economies. At the same