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Thursday, October 21, 2021
Home News Royal Bank of Canada Chief Describes Blockchain as a 'Quantum Innovation"

Royal Bank of Canada Chief Describes Blockchain as a ‘Quantum Innovation”

Dave McKay, chief executive of Royal Bank of Canada, likes the blockchain, loves his bank’s mobile wallet and thinks banks should focus more on fixing their legacy systems than trying to pull fintech startups under regulators’ purview.

At least that’s what Robert Barba, technology editor of American Banker and editor-in-chief of Bank Technology News, is reporting. 

Here are takeaways from the conversation.

Dipping a Toe into Blockchain

Like most large banks, the company is experimenting with the blockchain, a technology that McKay described as a “quantum innovation.”

The company could roll out a loyalty program that relies on the technology known for its fast settlement and distributed system of recordkeeping by next year.

“It would be a nice hybrid step” into integrating the blockchain into banking, McKay said. “A loyalty account is a good, safe currency to start with.”

When asked why RBC would use rewards — rather than tangible money — as a test case, McKay said an unproven technology “begs caution.”

“It is a brand-new technology, and what do we really know about it? How cyber-secure is it? We are going to learn a lot more about it,” he said. “Given what is at stake, it is not something you can rush to market with and fix as you go. You want it to work.”

Although several recent announcements indicate that financial institutions are still curious about bitcoin and cryptocurrencies — not just the underlying blockchain architecture — McKay seemed uninterested in bitcoin, saying that the industry wouldn’t be “solving any problems with a new currency.”

Besides using the distributed ledger technology for its loyalty system, RBC is also one of the 13 banks that have formed an alliance with R3CEV, a blockchain startup, to develop commercial applications of distributed ledger technology in the financial industry.

“Some of these issues are best broached as an industry,” McKay said.

Read full article here.

Richard Kasteleinhttps://www.the-blockchain.com
In his 20s, he sailed around the world on small yachts and wrote a series of travel articles called, 'The Hitchhiker's Guide to the Seas' travelling by hitching rides on yachts (1989) in major travel and yachting publications. He currently lives in Groningen, the Netherlands where he has set down his anchor to raise a family and write. Founder and publisher of industry publication Blockchain News (EST 2015) and director of education company Blockchain Partners (Oracle Partner) – Vancouver native Richard Kastelein is an award-winning publisher, innovation executive and entrepreneur. He has written over 2500 articles on Blockchain technology and startups at Blockchain News and has also published in Harvard Business Review, Venturebeat, Wired, The Guardian and a number of other publications. Kastelein has an Honorary Ph.D. and is Chair Professor of Blockchain at China's first blockchain University in Nanchang at the Jiangxi Ahead Institute software and Technology. He has over a half a decade experience judging and rewarding some 1000+ innovation projects as an EU expert for the European Commission's SME Instrument programme as a startup assessor and as a startup judge for the UK government's Innovate UK division. Kastelein has spoken (keynotes & panels) on Blockchain technology at over 50 events in 30+ cities.
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