Philly Fed President Praises Blockchain&#039s Authentication Abilities

Philly Fed President Praises Blockchain&#039s Authentication Skills

The president of the Federal Reserve Financial institution of Philadelphia weighed in on the choices of blockchain tech in a new speech this week.

Entitled Fintech: Revolution or Evolution? and presented to engineering students at the University of Pennsylvania, the speak discovered Philly Fed President and CEO Patrick Harker lauding the technology for its “great prospective”.

Further, Harker advised he believes blockchain could become a way banks and institutions more efficiently handle danger in the long term.

He advised the audience:

“From my perspective, however, its genuine worth is in authentication, not on distributing a virtual currency. And the implications of getting a distributed ledger that offers almost failsafe data storage are huge on the risk management side for any business.”

Still, it was clear from the remarks that Harker believes blockchain will eventually become an enabling platform for present incumbents.

For instance, he argued fintech companies will in no way totally disintermediate trusted third parties and brokers of money.

“Likewise, no matter what occurs in the planet of fintech, you even now need a trusted broker of income. The roles could alter and adapt, but an individual requirements to be the source of money and credit,” he stated.

Elsewhere, Harker was more bearish on the concept of a digital currency operating outside of the purview of the government.

“On the other hand, a single of the factors you’ll see with digital currency is how wildly the worth swings. The query is, ‘Will there ever be a digital currency that is secure adequate to grow to be as broadly employed as a government one particular?’ he mentioned.

He additional argued that privately held digital currencies would perhaps be unable to deal with a huge cash provide, incorporating:

“Unless a government troubles it, the solution is probably that no, digital currencies will not drive out our personal any time soon.”

Image via Shutterstock

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Published at Wed, 05 Apr 2017 17:26:06 +0000

Source: blockchain news
Philly Fed President Praises Blockchain&#039s Authentication Abilities