- Answer is True but Blockchain would not be able to replicate all the roles of central banks
- Barclays Bank Ireland CEO argues central banks are vital for economy
- Kevin Wall believes it would be a dangerous world without central banks
- He also suggests banks will become partners with fintechs
Barclays Bank Ireland CEO Kevin Wall believes it would be impractical to think blockchain will replace central banks.
Blockchain – a distributed and decentralised public ledger recording transactions simultaneously across numerous blocks – is the technology behind Bitcoin and a host of other cryptocurrencies.
And some critics believe that since the financial crisis exposed the complexity and inherent risk in the global financial system, a new decentralised system using cryptocurrencies and blockchain would be simpler in the coming decades.
But Mr Wall believes central banks play a vital role in the global economy, something that a decentralised blockchain system would not be able to replicate.
“Central Banks have evolved, particularly when it comes to the prudential as well as the supervisory role they play,” said Mr Wall, who has risen up the global bank with roles in the US, Australia, Singapore and Hong Kong since graduating from Warwick Business School in 1981. “A world without central banks would be a dangerous world.
“By and large they do a good job. They are of course not perfect, for example in the lead up to the financial crisis, where with the benefit of hindsight, it was clear that mistakes were made by allowing risk spreads to decline too far for too long.