Steve Chiavarone, portfolio manager at Federated Investors, claims that blockchain technology will lead us to the fourth industrial revolution, reaffirming what many large-scale investors and politicians, particularly Seoul mayor Park Won-soon, believe.
In an interview with CNBC, Chiavarone explained:
“When you think about it from an enterprise perspective, it has the ability to replace reconciliation, which is expensive and requires back office, time, and paperwork, with more instantaneous verification. What that means is, companies can have more efficient supply chains. They can cut their back and middle office costs and that will allow businesses to flow more efficiently and will allow cost to be cut and that savings to be passed along. We think blockchain will one of five key technologies along with automation, robotics, AI, and the Internet of Things”.
Major Banking Institutions are in Crypto
Major banking institutions like Goldman Sachs, The Bank of America and JPMorgan and Chase cooperate with large-scale conglomerates and companies in order to provide a number of banking services, loans and business solutions. Apart from this, companies also work with third-party service providers and use millions of dollars for audits, reconciliation, and manual labor costs.
Chiavarone explained that a number of major banks have recently started investing heavily in blockchain and cryptocurrency to ease the growing demand from banks for cryptocurrencies and blockchain technology. Before, banks could only access blockchain technology through bitcoin. However, banks have just started exploring a broader range of blockchain networks and technologies.
“A lot of investors went into bitcoin first because it was the first way to access blockchain. Big banks are investing in this heavily. Bank of America boasted at Davos that they’re investing the most,” Chiavarone said.
Blockchain startups have already established trusted blockchain networks for major corporations like KPGM, Microsoft, HSBC and MUFG, which also continued to control blockchain networks Ripple and Ethereum via numerous blockchain groups.
Chiavarone underscored the fact that if blockchain networks and startups successfully replace back offices, extensive labor and reduce costs involved in supply chain management, then blockchain technology could usher in the next industrial revolution.
“Any company that runs supply chains can benefit from blockchain technology and it is some of the tech names that underlie that kind of technology. Whether it be Nvidia or Intel, or any kind of company that’s around processing power that enables blockchain verification or the beneficiaries of it [are good investments],” he said.