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IBM financial services director discusses DeFi in new interview

IBM financial services director discusses DeFi in new interview
  • Recently speaking in an interview, Nitin Gaur explained how the company is looking into financial institutions in order to capitalise on the decentralised finance trend.
  • The director said that it is vital for many financial institutions to understand the emerging industry but he does say that it could eventually disrupt the entire business model.

Recently speaking in an interview with Cointelegraph, the IBM financial services and digital assets director, Nitin Gaur explained how the technology company is looking into financial institutions in order to capitalise onto the decentralised finance trend.

The director said that it is vital for many financial institutions to understand the emerging industry but he does say that it could eventually disrupt the entire business model.

He goes on to say:

“I think that the financial institutions should understand it because it has the potential to eventually sort of take over and subside the business elements of existing business models. And that's one reason why a bank should do it.”

For those that don’t know, there are many hurdles when it comes to the regulation side of things for DeFi. Especially with financial institutions. 

IBM believes it can help many of the customers walk around this but there are many banks who are still in the early stages when it comes to this kind of technology. The director added that he can see an influx of large banks starting with investment banks in the future..

However, he goes on to acknowledge that for many financial institutions to succeed in this industry, they would need to rethink how they approach it. 

He goes on to add:

“Into the dynamicity of the global marketplace that the DeFi space has to offer, not to mention the innovation into products, creating new competing products, and creating sort of add-on products.”

It will be interesting to see how this situation plays out. For more news on this and other crypto updates, keep it with CryptoDaily!

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