Blockchain Tech Underestimated In The Long Term: David Rutter, CEO Of Blockchain Firm R3
Blockchain should still be in infancy by the standards of most technologies, but comparatively blockchain industry is growing at an accelerating rate. For instance the modern computer has been around for over 80 years. Cloud computing continues to gain market share in many industries, although it has been around since 1996. According to forbes David Rutter CEO of firm R3, the blockchain startup founded in 2013 to remodel the way banks connect has raised a total of $122 million venture capital, with over 200 members. Rather than some of the crypto-anarchist visions of overthrowing traditional financial institutions, David is more practical in setting out to change the system from within.
Speaking to CNBC panel about blockchain technology, David Rutter says that libra woke up a lot of people up, central banks have been looking at blockchain and digital currencies now. They start at looking at from retail perspective. David says from our perspective we are an enterprise software solutions for business, we are interested in central bank digital currencies to settle large value transactions, which is different than we replacing currency which is crypto currency completely backed by the central bank.
There is another trend, if you look into sweden, it’s almost a cashless society. So the central banks have a lot of things to consider. When they look at what has been going on in cryptocurrency world and how they want to promote commerce globally.
Regarding a question concerning towards security (Hackers) some say its secure and impenetrable, some say lots of hacking there too.
David responded by saying security side plays to blockchain strength, security concerns grown due to making a lot of unpopular decisions 3 or 4 years ago. With lots of history i have been on the street for 30 years now, we are interested in solving real world business problems by making incremental improvement by using distributing computing importantly anyone in value chain knows what their counterpart sees what I see.
Question regarding China getting first and moving towards embracing cryptos compared to Europe.
David said Europe can’t get to the position of China, with our GDPR (general data protection rules) rules and other privacy related limitations, Europe cannot go about moving towards digital economy same as China did. That worries a bit, if you go to China or any office building there where employees have facial recognition there, they don’t have any badges there, they can track about their citizens without worrying about anything. For China it makes lots of sense not in Europe or the rest of the world. It does cause for rest of central banks, like Libra got them thinking about retail side which is much more complex problem to solve. Xi Jingping Chinese president has thinking, central bank has to control their own destiny, they want to at least be able to issue coins and help business, but the retail side is much more complicated.
In terms of adoption problems in China. Adoptions of technologies perhaps are much slower in China like robotic space, autonomous vehicles, self driving vehicles. Showing its getting clearer that adoption is slower and it’s also seems to be the case for blockchain for many b2b purposes.
It’s really show because media and rest has over hyped initially, example Bill Gates said humans overestimate the power of technology in the short run and underestimate in the long run. Some of the tech platforms as we discuss about financial technology. David Rutter have treasury platform for 6 years and it’s only getting traction now. I think the big thing is, we may design things around privacy, security and scalability, we avoided the drug of the hype of trying to get into public blockchain, people are now realized the public blockchain is mistake. Now trying to privacy on top of it people are concentrated about environmental impact on proof of work. It’s going to play around europe strength and its getting real this year. One thing to mention here is the entire banking system is focus on interbank payment this year (hundreds of millions of transactions) it’s been six year that feel normal now.