Most of the time, when people talk about Blockchain, they automatically associate it with cryptocurrencies or bitcoin. but blockchain technology is more than that. while it’s true that cryptocurrencies are the most visible applications of the blockchain, it can be applied to a multitude of problems in our everyday lives. And Jim Yong Kim, President of the World Bank thinks in the same way.
Jim Yong Kim has referred to blockchain technology as a having “huge potential” to solve many of the industries current problems, in declarations that he made while attending to the International Monetary Fund in Indonesia, yesterday.
Jim Yong Kim referred to the bond that the Commonwealth bank issued conjunctly with the World Bank in Australia, which was entirely blockchain managed. Its emission and all the paperwork could be simplified due to the use of blockchain as a driving tech behind. About the use of blockchain in financial applications, he stated that it could be extremely helpful.
He also criticized the stance that banks have had about this new kind of decentralized technology and tell that banks should embrace this to do something that would benefit customers and bankers alike. Banks are indeed way behind the curve while new fintech companies and cryptocurrency startups are taking the spotlight when we talk about innovation.
He exerted some auto-critic by saying that their goal of universal banking for the year 2020 won’t happen if they are not capable of engaging these new technologies to help reach the unbanked. Indeed, cryptocurrencies could help traditional banking institutions to bank the unbanked, providing that they have a good system and a better strategy for doing that.
He added that they must keep watching the whole fintech and crypto scenario because things are happening at an incredible speed. This positive talk about cryptocurrencies from the chief of the World Bank could seem strange to some, after declaring that he was adopting a wait-and-see approach. he declared earlier this year that:
“It’s still not really clear how it’s going to work.”
At the same interview, he declares that they have observed this kind of digital assets, but that he had been told that most of them were Ponzi schemes. Well, it seems that this doubt and skepticism were lifted from his mind and now he can clearly see the importance of cryptocurrencies and fintech in the evolution of the idea of money as we know it today.