According to Varouj Nerguizian, Chief Executive Officer (CEO) of Sharjah Bank, a United Arab Emirates-based financial institution, blockchain and cryptocurrencies are not going away, but are likely to become an important part of the banking system.
However, Nerguizian said banks can only fully benefit from the technology if they deploy non-public or enterprise blockchains. In the interview, the CEO also explained how blockchain could be a double-edged sword for financial institutions trying to adapt to the post-pandemic situation. “Blockchain is a revolutionary technology that the entire banking industry has not yet fully understood,” he said.
While its applications are easy to grasp in some areas, such as know-your-customer [KYC] or real estate title deed verification, blockchain purportedly allows parties to transact with each other without the need for an intermediary. This has raised concerns for authorities looking to monitor the activity.