Jose Fernandez da Ponte as the Senior VP of Blockchain, Crypto, and Digital Currencies at PayPal, he’s got some thoughts on whether blockchain will kick traditional banks to the curb. Spoiler alert, it won’t, and it will even improve them.
Be your own bank?
In a chat with Scott Melker, the host of “The Wolf of All Streets,” Fernandez da Ponte laid it out straight that blockchain is a powerful tool, but it’s not here to replace banks.
Instead, think of it as a trusty sidekick that boosts efficiency and slashes costs. “I don’t think so,” he said when asked about blockchain taking over PayPal’s systems.
“Blockchains are great for specific tasks but not for everything.”
Imagine your computer’s co-processor, doing the heavy lifting for certain tasks while the main system handles the rest.
That’s how Fernandez sees blockchain fitting into the financial industry now, as it excels at decentralization and resisting censorship, which are pretty sweet perks for the average customers.
Everyone use money
Now, while blockchain can speed up transactions and make them cheaper, Fernandez believes that most folks will still want to stick with good ol’ fiat currency, the physical cash for their daily spending, because it’s way more convenient.
“Still, most folks will want to go back to fiat in some ways.”
Rather than a showdown between banks and blockchain, he envisions a harmonious coexistence where both can thrive together.
This technology will make them better, he explained, suggesting that blockchain could boost traditional banking systems by increasing transaction speed and lowering costs.
New era for banking?
Speaking of banks and crypto, Fed Chair Jerome Powell recently chimed in on this topic too, and confirmed that banks can absolutely serve crypto customers, provided they manage risks properly.
On the other hand, Powell addressed concerns from a report highlighting cryptocurrencies as potential financial risks, but he reassured everyone that as long as banks understand and manage those risks safely, they’re good to go.
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