The CEO of Bank of Sharjah, Varouj Nerguizian said that blockchain technology and cryptocurrencies are not only difficult to regulate but are also here to stay.
“I personally believe blockchain technology and by extension cryptocurrency is here to stay and impossible to regulate at large,” Nerguizian said during an interview with UAE’s Emirates News Agency, on Thursday.
However, Nerguizian believes that enterprise blockchain [private blockchain operated in a closed network] could be an easier initiative between banks as consensus would be limited to known and trusted parties.
The CEO also explained how blockchain can potentially be a double-edged sword to financial institutions that are attempting to adapt to the post-pandemic landscape, but are likely to become a significant part of the banking system.
“Blockchain is a revolutionary technology that is not yet fully understood by the banking industry at large. While its application is easy to grasp in certain areas like Know Your Customer [KYC] or the real estate title deed verification, blockchain supposedly allows parties to transact with each other without the need for an intermediary. This raises the concerns of the authorities that would like to monitor the activity,” He added.
Despite this prediction, the CEO admits that many in the banking industry still do not fully understand this technology.