Speaking on CNBC’s “Fast Money” on Tuesday, James Disney of Credit Suisse made bold claims about the revolutionary power of blockchain. He also confirmed that Credit Suisse have been running experiments with the technology in various parts of the business.
Due to the present nature of private equity transactions, it can take weeks for deals to close and accounts to settle. According to Disney, blockchain tech can reduce this to just minutes.
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If you add up all of our volume over the quarter, that’s hundreds of billions of dollars we’re able to free up and take out of the system to use for other purposes.
When asked about where the technology is heading, he cited Bitcoin as the first “killer” blockchain app, relating it to email, claiming that to be internet’s equivalent application. He went on to conclude that there will be much greater innovation coming in the future, stating that the “sky’s the limit” and that “we’re in the very, very earlier stages here.”
In response to a question about the impact that blockchain will have on “middle and back office workers” on Wall Street, Disney said, like with all automation, it would reduce the need for employees of that nature. This would allow for their reemployment in other areas. Such a streamlining of services is beneficial in many areas, according to the Credit Suisse global head of software investment banking. He cited increased capital efficiency, speed, and the removal of cost as positive effects, claiming blockchain represents a great opportunity rather than a risk.
Innovation is core to what we do. We need to be innovative otherwise we’d be out of business and it’s really cryptocurrencies, and the blockchain technology… that are a core pillar of our innovation portfolio.
Disney echoes many in the financial industry’s optimism for blockchain technology’s utility. Even those most hostile to its current “killer app”, Bitcoin, admit that blockchain has revolutionary potential in streamlining existing services.