- Martin Walker of Think Tank calls Blockchain a pixie dust.
- He claimed that Blockchain has “little to nothing” to offer in regards to its potential benefits to the sector.
According to the Business Insider report yesterday 1st May, the director of the Center for Evidence-Based Management – Think Tank, Martin Walker, has talked down the Blockchain Technology, calling it a “pixie dust” fad before the Treasury Committee.
Martin, while speaking before the British Parliament at a hearing on blockchain in the financial system, claimed that Blockchain can only offer “little to nothing” in regards to its potential benefits to the sector. He said:
“All that it takes to make a credible idea into a fad is people just switch off their brains and stop thinking. Over 20 years in and around the banking industry — blockchain is a fad, but I have seen many fads in my career. If 10 percent of what I’ve heard in my career had come true, we would have these amazing banks that run for £1 a week.”
Martin Walker compared the blockchain fad to “magic wands” and “pixie dust.” He stated that it is pointless considering blockchain as a singular thing, he claimed that most developers have deviated from the original principles of blockchain created for cryptocurrencies.
Martin added that the craze that came with blockchain acted as a “catalyst” that caused banks to upgrade certain parts of their operations, like trade finance. All the same, he cautioned the committee that the craze has the potential to cause “a distraction from looking at getting some of the basics rights,” stressing that some of the executives see Blockchain as a “universal panacea.” He stated:
“Genuine innovation is hard. We’ve created what one of my colleagues calls ‘innovation theater.’ If you want to be seen to be innovative, all you have to do is a proof of concept using blockchain. It doesn’t matter if it doesn’t go anywhere.”
Though Blockchain technology was initially created to back cryptocurrencies and enable crypto transactions, it has also been employed in other areas like healthcare and real estate. Financial institutions across the world have launched applications for blockchain and invested in serious developments to improve their business models using Blockchain.
In April, Banco Bilbao Vizcaya Argentaria (BBVA) – a Spanish multinational bank – became the first global bank to issue a loan using blockchain technology. It was reported that using the blockchain reduced the negotiation time for the €75 million loan from days to hours. IBM, the Bank of Montreal (BMO), CaixaBank, Commerzbank, Erste Group, and the United Bank of Switzerland’s (UBS) all partnered to develop a blockchain trade finance platform called Batavia, which has resulted in the platform’s first live pilot transactions.
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