- The CEO of the Royal Bank of Canada has said that blockchain technology has the potential to disrupt the banking system
- Dave McKay said that blockchain, alongside AI and IoT, were “transformational” movements
- He warned that banks would have to evolve once more to cope with the threats posed
The CEO of the Royal Bank of Canada, Dave McKay, has named blockchain as one of the three technologies that has the potential to disrupt the traditional banking system in the coming years. Speaking at the Sibos financial-services conference this week, McKay said that the triumvirate of artificial intelligence, Internet-of-Things, and blockchain represent a combined “transformational technology that are about to hit us”, leaving the regular banking world needing to “yet again evolve our capabilities” to stay relevant.
Blockchain and DeFi Causing Banks Problems
Blockchain technology, and particularly the DeFi sector, are already making waves within the financial world by opening up new channels of financial opportunity and inclusion to those previously excluded from the traditional banking system. McKcay was asked about which technologies will be most disruptive in the coming years and he was unequivocal about blockchain, AI, and IoT:
“It’s going to explode the number of transactions, the complexity of those transactions and the need for us to yet again evolve our capabilities to be in many more points than we were before. It’s going to be an incredible opportunity for us to build for the future, but it’s an incredibly complex world.”
Security Utmost in Banks’ Minds
Part of the complexities will revolve around cybersecurity, McKay added, saying that the next expanded financial infrastructure will open up many more points of vulnerability and will create a larger “perimeter” that banks will have to defend. He added that while blockchain and digital coins aren’t yet fully mature, they will continue to evolve to the point where they are a tempting option for regular individuals and not just those in the crypto world.