Bain Blockchain Report: ‘Wait-and-See Approach’ Wrong for Banks
Banks are not moving fast enough to protect themselves against blockchain disruption, which could result in a loss of up to $150 billion in revenue, according global management consultants Bain & Company. Bain: Banks ‘Flat-footed’ in Face of Blockchain Disruption. The firm, which filed a report on banks’ responses to blockchain last week, said that....
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Banks are not moving fast enough to adopt the Blockchain and this may lead to their quick demise. Recently in an article authored by Glen Williams, David Gunn, Eduardo Roma and Bharat Bansal, the consulting firm Bain said that banking companies are missing out on Digital Currency. In its article Bain said about Blockchain, “Distributed ledger technology, first showcased by the Bitcoin digital currency network, has the potential for such dramatic change—yet most banks have not adequately prepared for the ensuing battles to retain control of customers and of merchant payment interfaces.” Bain....
Banks have not prepared to retain control of customers and merchant payment interfaces in the face of blockchain or distributed ledger, according to managing consultant firm Bain & Company white paper. Such technology removes intermediaries, simplifies counterparty connections and records data in a tamper-proof manner. It also promises faster speed, more transparency and efficiency for payments. Bitcoin, despite some flaws, demonstrates these possibilities and has attracted a surge of investment. Ripple Labs, a blockchain startup, holds a seat on the Federal Reserve Faster Payments....
JPMorgan Chase and consultants Oliver Wyman have joined calls for traditional investment banking to “embrace the Blockchain” or be left disadvantaged. JPMorgan: ‘Get Off the Sidelines’. In a joint report issued last week, the firms described the current industry mood as “a consensus… forming that [Blockchain] is the real deal.” “Disregarding it is a....
This news comes at the time when experts assumed adoption of distributed ledgers was still five to ten years away. Once again, the so-called experts have been proven wrong, and it is not the last time that will happen. Blockchain adoption by traditional financial institutions will not happen anytime soon. At least, that is the message their official spokespeople are converting to the world. But according to IBM, there has been a rush to embrace distributed ledgers and integrate them into core systems. Things are looking positive for Bitcoin technology, even though banks will not embrace....
Venture capital investment in crypto projects topped $25 billion in 2021, more than the sum of the last ten years. Bain Capital Ventures, one of the world's largest startup-investment firms with $5.1 billion in assets under management, has announced the formation of a new $560 million fund that will focus on crypto-related investments.According to a March 8 Bloomberg report, the fund closed in November and it has already invested $100 million in 12 undisclosed projects.Bain Capital Ventures has a history of investing in the crypto and blockchain sector, having previously backed companies....