interview with Victor Games

CCN: – Blockchain is used as a repository for activities related to cryptocurrency bitcoin. It records all movements within the system. The technology can also be implemented in banking – with the help of cryptographic technology, you can significantly shorten the time of large transactions (granting loans, stock trading, etc.). According to the Spanish investment fund Santander InnoVentures, the investment chain will save investors about $ 20 billion a year by reducing the cost of financial transactions (broker, regulatory).

Mr Sanchez de Pedro: – The report was published three years ago in 2015, given the rapid development of the block chain, the figure may seem a bit outdated. Alleged savings, which are much easier to predict than to verify with reasonable accuracy either through accounts or bank results, refer to savings made by the banking industry that benefit the consumer in general to some extent, whether individuals or consumers. a large multinational corporation.

CCN: – There is an opinion that in ten years there will be no banks. We are actively developing a peer-to-peer credit relocation platform (lending without an intermediary in the staff of a bank or other lending institution) and developing payment techniques based on Blockchain technology.

Mr Sanchez de Pedro: I do not agree. Perhaps we will see less “brick and mortar” banking networks as banks as well as their customers and end users have adopted blockchain. What would make the blockchain easier is the economic inclusion of hundreds of millions of people, especially those living in developing countries, who find it difficult to meet their economic needs and generally at much higher costs than in developed economies. Also, it should not be forgotten that credit, the word for Latin creder, means faith… trust … the basis of banking for the customer and the bank on both sides, deposits and credit / loan, both based on mutual credit or trust that each party gives to each other.

Santander, HSBC, JP Morgan, Goldman Sach, BBVA are just some of the early adopters of blockchain technology

Today, we will discuss the future application of blockchain technology and its impact on banking with a financial expert and business developers with an international banking career, and advise on the management of multilateral financial institutions, governments and the private sector.

With more than 50 years of experience, Miguel works in banks and companies in more than 20 developing countries and advises multilateral institutions such as the World Bank, EBRD, IADB, EU on bank restructuring, venture capital, privatization, institution building and business development Mr. Miguel Sánchez de Pedro

CCN: – Hi Miguel, for you as a banker and an experienced financier you often hear about a new economic phenomenon like cryptocurrency. How long have you been following the blockchain, and what is the opinion of the banking sector about the blockchain system?

Mr Sanchez de Pedro: – I look at the block chain from 2016, more on its likely impact on the operational development of financial institutions than on their ups and downs on the stock market. With my colleagues, where I talk often, they look at technology with caution, as any banker does when he enters unfamiliar waters

CCN: – What do bankers ask and ask about the blockchain, and do they think the blockchain will enter the banking industry?

Mr Sanchez de Pedro: – Firstly, they show a growing interest in learning about and what the chain of custody can offer to their day-to-day operations, to improve banking services and how this technology helps the banking customer.

CCN: – Did you get a proposal for a collaboration chain from blockchain developers to implement the banking sector?

Mr Sanchez de Pedro: – Yes, I did and I keep an open mind to the new shareholders

CCN: – The block chain is gaining a large turnover, it is moving to different sectors of the economy. How do you see the future of the banking sector over the next five years?

Mr Sanchez de Pedro: – I see no hurry but a stable implementation of the blockchain among the banking sector, firstly to improve the competitiveness of the banks and secondly to help them manage the cost aspects of balance management sheet

CCN: – The emergence of a blockchain for the banking sector will reduce the human factor and associated costs. Does this mean that the blockchain used by banks strengthens fiat money and protects against inflation?

Mr Sanchez de Pedro: – I do not see a reduction in the human factor, because the banking sector, especially in advanced economies, has undergone a fundamental restructuring since the mid-1990s. I think there is a new window of opportunity for people who have experienced blockchain technology, especially with artificial intelligence and Big Data, to become bankers. When it comes to strengthening fiat money and protecting it from inflation, I don’t think blockchain and banks have anything to do with it. Fiat’s strengthening or weakening increasingly depends on the monetary and exchange rate policies of any government, while the fight against inflation should be better placed in the economic policies of each country.

CCN: – Which combination of innovations will be the main tool for change? Which sector of the economy primarily needs a blockchain.

Mr Sanchez de Pedro: – I see banking and financial services in general, health, food security, agriculture, energy, transport, trade and technology

CCN: – Which large and well-known banks are currently developing blockchain technology?

Mr Sanchez de Pedro: – In my country, Spain, BBVA can be credited as the first global bank to launch a EUR 75 million corporate loan through a blockchain, and this happened in April this year. There are several initiatives related to payments, trade finance. Santander, HSBC, JP Morgan, Goldman Sach, BBVA are just some of the early adopters of blockchain technology

CCN: – The world’s largest banks could very well be involved in the development of the block chain without losing leadership. To this end, it is necessary to change the laws. Are regulators prepared to reconsider their views and in which countries is this already possible?

Mr Sanchez de Pedro: – Certainly regulators and regulators have a great say when banks can further develop the blockchain. Another focus is the ability of tax authorities to provide a safe and predictable environment for how income from blockchain is taxed. I think the question goes as it is technology, but how do banks handle deposits and withdrawals in any cryptocurrency currency and how are they invested in their balance sheets for the economic and financial value they represent, their regulation, management and associated risk management, including risks related to KYC and AML procedures

CCN: – In the financial sector, continued growth is very important. Did the banks feel the outflow of capital for the period 2017/2018?

Mr Sanchez de Pedro: I have not yet seen that outflow

CCN: – Do you believe in the future of cryptocurrency and are you an investor in some famous coins?

Mr Sanchez de Pedro: – Yes, but I am more in favor of the relatively new ICO space, where start-ups are looking for a way to raise funding for their projects, which are otherwise either very difficult or expensive to attract or simply banned by national regulators. I believe more in the innovation contained in the blockchain than in a particular cryptocurrency, the value of which is still not understood by the layman today, and there are several risks that make their investments more suitable for an accredited investor and a bold risk taker.

CCN: – Which cryptocurrency currency developers did you meet and what was discussed?

Mr Sanchez de Pedro: – As a banker, always protect the privacy of my colleagues

CCN: – And the last question, what advice do you give to bankers in different countries regarding blockchain?

Mr. Sanchez de Pedro: – I advise the bankers I talk to, just stay open to technology, educate your people about new developments and try to influence regulators to understand and thus properly participate in the implementation of the blockchain, so it is considered a trusted friend who deserves dialogue rather than despising it. .

Thanks to Miguel for the interview

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