- According to the CEO of Bank of Sharjah, Varouj Nerguizian, blockchain and cryptocurrencies are “here to stay” even though they are difficult to regulate.
- The CEO also believes that blockchain technology is quite revolutionary yet the majority of banks fail to grasp it in order to utilize it completely for their benefit.
- In a report, the CEO, expressing his views on the banking sector, stated that the industry was already heading towards digital transformation before the pandemic even hit the world.
“Blockchain And Cryptocurrencies Not Going Anywhere”, Asserts CEO
Varouj Nerguizian, CEO of Bank of Sharjah, believes that it is highly probable that cryptocurrencies and blockchain will become an important part of the banking system.
Nerguizian further added that banks can however leverage much from technology in case they deploy enterprise or non-public blockchains.
In an interview, the CEO said that blockchain technology is likely to be a “double-edged sword” to all financial institutions who are slowly seeping into the post-pandemic phase.
Blockchain technology can bring revolution yet it remains unexplored by the banking industry in general. There is no doubt that the technology’s utilization is fairly easy in some fields such as
the real estate title deed verification or Know Your Customer or KYC. Blockchain facilitates a transaction among individuals that eliminates the need for an intermediary. This doesn’t help the authorities that believe in monitoring the activity.
Nerguizian also didn’t seem concerned about the future of blockchain technology and cryptocurrencies. There are particular concerns regarding the technology and digital asset future in the post-pandemic atmosphere, however, the CEO asserted that the “technology is not going away.”
He admitted that it is impossible to regulate blockchain and cryptocurrency at large, although he still believes they will be continuing for a long time. Nerguizian also explained that jurisdictions like Dubai International Financial Center [DIFC] and Abu Dhabi Global Market [ADGM] have introduced crypto regulation, nonetheless, it will play a significant role in the banking sector as the world progresses.
Banks Can “Reap Future Gains,” Says Nerguizian
The CEO, sharing his beliefs in a report, claimed that even before the pandemic, the banking industry was transiting into a digital transformation. Just like other sectors, with the spread of the pandemic, the banking sector also shifted to the work from home model.
Nerguizian also thinks that banks will probably “reap future gains and profitability ” if they try to exploit their employees’ ability to work remotely.