Banks are very interested in the blockchain at the moment, the technology that underpins digital currency bitcoin.
The technology has the potential to make money transfers faster and cheaper, as well as having potential revolutionary applications for everything from stock issuing to the diamond trade.
22 of the world’s leading investment banks have formed a partnership to look at how the blockchain can be used in traditional banking.
But the former head of Barclay’s technology division in Europe, the Middle East, and Africa says it is just a “cynical” attempt to try and control the technology.
Watson told Business Insider: “I can tell you, it’s the most cynical thing I’ve ever seen. What they’re going to do is what they always do — form a little consortium to block.”
Anthony Watson believes the banks are trying to build their own proprietary internal blockchain that will deliver benefits for them but not customers and stop fintech challengers from taking them on.
Watson says: “The blockchain is fundamentally transformative, it blows up banks business models because they can’t charge people the same astronomical fees. So they’re forming this to block people. And that’s all it is, it’s a cynical tactic to block people and stop people innovating.”
Watson spent 12 years working in banks, running technology at Citi, Wells Fargo, and Barclays. He now heads Uphold, a fintech company that allows free international money transfers using blockchain technology.
http://www.businessinsider.com.au/banks-approach-to-bitcoin-is-cynical-says-an-ex-barclays-tech-chief-2015-10
