UBS CEO ‘not necessarily’ a believer in cryptocurrencies, but he likes blockchain

UBS CEO ‘not necessarily’ a believer in cryptocurrencies, but he likes blockchain

  • Sergio Ermotti told CNBC that while the bank has seen success in its trade finance blockchain platform, he was “not necessarily” a believer in cryptocurrencies.
  • When asked whether he liked virtual currencies, he said: “Not necessarily cryptocurrencies, I think that needs to be defined, but I believe there is a future for blockchain technology, and technology will play a big role in changing and reshaping our industry.”
  • UBS has been involved in a blockchain project — called Batavia — with IBM and other banks, including Commerzbank and Bank of Montreal.
  • We try to initiate and get as many other financial institutions and clients into teams like trade finance with other banks and IBM was a successful venture,” Ermotti said.
  • Ermotti added that the technology would form an ecosystem that enables financial institutions to “operate and transact at a cheaper, more efficient level.”

Sergio Ermotti told CNBC that while UBS has seen success in its trade finance blockchain platform, he was “not necessarily” a believer in cryptocurrencies.
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Fintech CEO says tech giants like IBM may go on M&A ‘shopping spree’ for start-ups in 2018

  • Tech giants like IBM and Capgemini could go on a mergers and acquisitions “shopping spree” for financial technology (fintech) start-ups next year, the chief of one such start-up has told CNBC.
  • Daniel Döderlein, CEO of Norwegian fintech startup Auka, said that tech behemoths that have shared a long-standing relationship with banks but still rely on older technology would begin to show an interest in a “flood” of new fintech firms.
  • A new European directive, which becomes effective in January 2018, would enable third party businesses to monopolize on banks’ software and customer data to build new products – something referred to in the fintech world as “open banking”.
  • Döderlein, whose company helps develop mobile payments products for 17 banks, said that this would result in big, mainstream tech companies snapping up smaller fintechs to harness the newer technologies they have on offer.
  • “What we see predominantly throughout that whole sector is that their capability in terms of the technology you need to serve this next leg of the journey, once all the floodgates are being opened up in January 2018, is not necessarily present.

Massive tech players like IBM and Capgemini could go on a mergers and acquisitions “shopping spree” for financial technology (fintech) start-ups next year, the chief of one such start-up has told CNBC.
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What exactly is fintech? – VICE News

  • Banks can now use technology to make it easier to process paperwork, send money between you and your friends, and apply for financial services like mortgages and loans.
  • Investor attention toward Canadian fintech companies has started to ramp up in the last few years.
  • A recent report from Reuters puts Canadian venture capital investment in fintech companies at $137.7 million (USD) in 2016 alone.
  • Peter Misek of the Business Development Bank of Canada thinks there are a couple of reasons why the fintech revolution has arrived.
  • “Our smartphones have given insight into human beings that from the outside no financial institution, or frankly, company, would ever have had,” said Misek.

A look into how technology is disrupting the banking industry at a pace never seen before

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The National Bank of Canada Just Joined An Alliance to Develop Ethereum

The Bank of Canada Just Joined An Alliance to Develop Ethereum - Motherboard  #Ethereum

  • On Monday, the Enterprise Ethereum Alliance announced 86 new members that will work together to develop business applications on the Ethereum blockchain, including Toyota, Deloitte, Samsung SDS, and the National Bank of Canada.
  • But while bitcoin has become a haven for speculators trying to win big by trading coins, Ethereum’s promise is that its blockchain—the public ledger that records all transactions—is chiefly a platform for developing apps, powered by economic incentives.
  • Read More: The Bank of Canada Slipped the Konami Code Into a Bank Note Announcement

    The alliance, which was founded in February of this year, is a global foundation with more than 100 members which include financial institutions like JP Morgan, Credit Suisse, and Banco Santander.

  • The bank ran a pilot using an in-house digital currency to conduct interbank transactions on a blockchain in 2016, snubbing the existing bitcoin currency.
  • Ethereum still might not be as valuable as bitcoin (one coin is worth over $2,000 USD at the moment, while one denomination of Ethereum, called ether, is worth $163), but it could be a whole lot more useful for banks.

Why not bitcoin?
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