UBS Group CEO Consider Blockchain Technology a Vital Opportunity
CEO of UBS Group believes blockchain “definitely an opportunity” in the long run
Sergio Ermotti, the CEO of UBS Group in the Swiss financial services sector considers blockchain technology “definitely an opportunity” in the long run for the development process. He believes blockchain, the underlying technology of digital currencies, could be an ideal way to reduce costs.
On Monday, in an interview with Michelle Caruso-Cabera of CNBC, Ermotti made the following statement;
It is almost a must. The freeing up of resources to become more efficient will come through technology and blockchain is a great way to allow us to… reduce costs.
Blockchain technology provides a mechanism to store data throughout the network on multiple electronic devices, rather than having it on one centralized location.
According to Ermotti, when it comes to gross margins surely the industry will come across obstacles and peer pressure. In his view, pricing the product correctly is also a vital factor to stay alive in the market.
UBS Group Involvement in the Blockchain
The UBS Group, alongside IBM and several banks are on “Batavia” which is a global trade finance platform on the blockchain.
Ermotti considers planning for a long period as the cost base of the financial services will not happen in a day or two, but instead will take about five to ten years. As he sees, blockchain technology, “will be as crucial and disruptive, and changing as regulation was in the last 10 years.”
But he has not yet come in agreement with Bitcoin or with the concept of cryptocurrencies. According to his remark, he is “not necessarily” a fan of digital currencies. In October 2017, the UBS Group warned the community that Bitcoin was somewhat in a “speculative bubble”, which will fail to become a real currency.
Considerations Related to Trade War
On 18th June 2018, Ermotti further emphasized on the possible occurrence of a trade war between China and the USA. It worries him as given things go out of control more serious issues may arise following the incident. In his view, this would bring upon trade risks which could come from any nation including USA, China and even Europe.