According to Christian Nolting, Chief Investment Officer for Deutsche Bank, the Blockchain technology can provide the opportunity to shift how companies conduct their business.
Christian along with Marcus Muller, global head of the CIO office, delivered a presentation on how digital currencies and Blockchain technology work and attempted to predict their future. According to the presentation, the “opportunities associated with blockchain technologies are huge,” and could be fully put into practice within the next few years.
The two famous bankers estimated that about 10% of the global GDP (gross domestic product) could be “regulated” by a Blockchain technology by 2027. They stated:
“We expect that the blockchain will change the business model of companies in a sustained way. The blockchain technology enables a faster and cheaper exchange of assets and financial products between individuals without an [intermediary], which reduces the asymmetry of information between the individuals.”
Even though the bankers see the huge potential that Blockchain technology has, they are less excited about the potential of cryptocurrencies, as they regard these cryptocoins as “highly speculative” due to their lack of intrinsic value or backing from a central bank. One way in which these cryptocurrencies could evolve is having the government intervene in their development in order to increase their adoption.
Another cause for concern discussed in the presentation was the potential for hard forks to create new currencies and the possibility that this would lead to inflation.
“In addition, central banks could develop their own cryptocurrencies and replace the private ones in the market,” it said.