Thursday, June 2, 2016

Tim Wallace — Core of banking could be destroyed by blockchain, says Barclays’ former boss

New technology such as artificial intelligence and blockchain will utterly shake up the fundamental principles of banking, challenging the entire industry according to former Barclays chief Antony Jenkins.
He believes the innovation in finance could eliminate the need for maturity transformation – the process by which short-term deposits, such as current accounts and instant access savings, fund long-term loans including mortgages.
That is a fundamental principle of the industry as banks can offer a low interest rate to savers while charging more to borrowers, profiting from the gap between the two rates. Yet in 10 to 20 years’ time, he believes the need for banks to perform the function might no longer exist – already some investors are sidestepping banks by using websites to match borrowers and savers directly.…
The Telegraph
Core of banking could be destroyed by blockchain, says Barclays’ former boss
Tim Wallace

6 comments:

Philippe said...

Pretty dumb. Bank customers don't want the risk of lending directly.

Ignacio said...

assumes 'loanable funds' theory. wrong.

blockchain doesn't create credit can't either leverage assets. "mining" creates bitcoins.


this guy is very confused.

Ryan Harris said...

very very confused.

Bob said...

Bitcoin client 'rewards' you for donating your computer's processing power.

Matt Franko said...

Phillipe no this is all part of the vast "neo-liberal conspiracy!"...

You see, all of these crafty "neo-liberals!" drew straws and this former Barclays guy drew the short straw and it was his turn to portray himself as a moron here:

"short-term deposits.... fund long-term loans including mortgages"

They all draw straws at the big neo-liberal secret meetings they have and the losers have to go out on the major media and make fools of themselves in order to maintain the neo-liberal cover-up...

This guy just had to take one for the team here and suck it up...

Ryan Harris said...

That was big of him. His neo-liberal class ring and secret handshake was a dead giveaway though to those in the know.