Steve Chiavarone, who is a portfolio manager at Federated Investors, an investment firm that oversees $364 billion in customer assets, claimed that blockchain technology would spark and eventually drive the fourth industrial revolution forward, reiterating the position of many large-scale investors and politicians, including that of the mayor of Seoul, Park Won-soon.
“When you think about it from an enterprise perspective, it has the ability to replace reconciliation, which is expensive and requires back office, time, and paperwork, with more instantaneous verification. What that means is, companies can have more efficient supply chains. They can cut their back and middle office costs and that will allow businesses to flow more efficiently and will allow cost to be cut and that savings to be passed along. We think blockchain will one of five key technologies along with automation, robotics, AI, and the Internet of Things,” said Chiavarone in a report on CNBC.
Major players in the banking industry such as JPMorgan, Goldman Sachs, and Bank of America work with large-scale conglomerates and enterprises to offer banking services, loans, and business solutions. Aside from that, enterprises also collaborate with third party service providers and devote millions of dollars on a quarterly basis for audits, reconciliation, and manual labor costs to sustain their supply chains and minor operations.
Chiavarone remarked that a lot of major banks have began investing heavily in the blockchain and cryptocurrency sector to enable the growing demand from banks for cryptocurrencies and blockchain technology. At first, bitcoin was the only way to gain access to blockchain technology. Recently, Chiavarone said that banks have began looking at a wide range of blockchain networks and technologies.
“A lot of investors went into bitcoin first because it was the first way to access blockchain. Big banks are investing in this heavily. Bank of America boasted at Davos that they’re investing the most,” Chiavarone added.
Blockchain startups like Bluzelle have already established trusted blockchain networks for large-scale conglomerates such as HSBC, KPMG, Microsoft, and MUFG, which have also continued to leverage blockchain networks like Ethereum and Ripple through several blockchain consortia.
Chiavarone also noted that if blockchain startups and networks can prosper in taking the place of back offices, extensive labor, and eliminate costs that are usually involved in operating supply chains, blockchain technology could be at the helm of the next industrial revolution.
“Any company that runs supply chains can benefit from blockchain technology and it is some of the tech names that underlie that kind of technology. Whether it be Nvidia or Intel, or any kind of company that’s around processing power that enables blockchain verification or the beneficiaries of it [are good investments],” said Chiavarone.
- Bank of Spain Governor Bullish on Blockchain Potential 24 May 2018
- Verge Suffers Another Hack Attack, 35 Million XVG Lost 24 May 2018
- Tim Draper Unveils Vision for Blockchain-Based Digital Governments 24 May 2018
- Abductors Demand Ransom of Bitcoin for Return of 13-year Old Boy 24 May 2018
- Deutsche Boerse Taking a Look at Crypto Integration 24 May 2018
Blockchain4 days ago
Former JP Morgan Blockchain Lead Amber Baldet Introduces Latest Project
Business4 days ago
Goldman Sachs CEO Lloyd Blankfein Set to Step Down
Business2 days ago
Former Visa CEO Transfers to Startup Crypterium
Business2 days ago
Thai SEC Conducts Focus Group Regarding Crypto and ICO Regulations