Bitcoin, Crypto currency, Blockchain

UBS CEO Ermotti called the Blockchain “Must-Have” for companies and banks

a4b5cc71671d900313cd83d0a8b70820 - UBS CEO Ermotti called the Blockchain "Must-Have" for companies and banks

The managing Director of the Swiss banking giant UBS, Sergio Ermotti, holds much of the Blockchain. In an interview with US news channel CNBC he sees the Distributed Ledger technologies this week, particularly in the financial sector has a great future ahead. Especially for banks, the technologies represented a ground-breaking opportunity. So had this for companies now almost a “Must-Have” blossomed. Meanwhile, more and more money in homes around the globe have their eyes on the potential of the Blockchain.

UBS CEO Sergio Ermotti is anything other than a crypto-Fan – the Swiss has made in the past on a number of occasions. The Blockchain technology behind the Crypto, this is not currency, however, distracts him. Even more: In an interview with US business news service CNBC, he emphasized this week the special potential of the Blockchain for the banking sector.

“The Blockchain is almost a Must-Have. Technologies will make [in the future] resources and [the banks] to make it more efficient. The Blockchain is a great opportunity that allowed us to reduce costs.“

Such cost savings were necessary, since in the long term of the business pressure on banks, waxes, Ermotti.

See this in times of a flourishing digitisation of the entire financial industry with shrinking profit margins. Particularly in the area of day-to-day business, more and more private companies run the traditional money houses.

“Our industry will continue to be, with a view on the gross-margins under pressure. There is no doubt. The only way to remain relevant, not only in capital, products, quality of staff and customer consultation. You must also be able to from this at the right prices to derive“,

so, the UBS managing Director about the benefits of coming in the Blockchain application. In addition to the adaptation in the transaction of business, the Distributed Ledger technologies (DLTs) is attributed to the behavior of the decisive prediction of strength for markets and customers. This banks may make in the future for their business units use.

However, Ermotti stressed at 18. June, banks and their customers still have to wait. So it takes to breakthrough the Blockchain yet another five to ten years.

However, a break stand, the 58-Year-old safe. The Blockchain for the banking sector will prove “so groundbreaking and far-reaching, as the [financial]regulation of the past ten years”.

Banks and the Blockchain Together in the future?

While banks in particular, it is believed to be the opinions of experts in your business model from the DLT is threatened most significantly, more and more money houses the view to the potentials of the technologies. According to a study by the US consulting firm, Greenwich Advisors of the past week shows, among other things, that the efforts of the financial institutions in the Blockchain sector in the past year have more than doubled. All $ 1.7 billion to put banks around the world by 2017 in the research and development of DLT solutions.

One of these, the Bank hopes the company R3. In the consortium have closed, according to over 200 financial institutions, regulators, trade associations and technology companies. Among them are the likes of Microsoft, Barclays, HSBC and UBS. Your goal should be to develop Blockchain-solutions for business applications and particularly the Bank’s payment transactions.

Furthermore, the Swiss are currently conducting research together with the US software giant IBM’s Blockchain-application. Their trading platform Batavia in future is to make the financing of the international movement on safe feet.

The moves by UBS and the estimates of its CEO Sergio Ermotti underline in this week’s a global Trend: Especially banks have the potential of the Distributed Ledger technologies.

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