Fear and greed will eventually drive banks toward Bitcoin

Although it will take a long time, the U.S. banking industry may eventually embrace the blockchain technology behind Bitcoin.

     Blythe Masters, the CDS queen of Wall Street and CEO of Digital Asset Holdings, said at a conference in Manhattan that "the driving force behind companies opening their eyes...is fear and greed."

     Bitcoin is a virtual currency, and its value often fluctuates greatly. Blockchain is the underlying technology of Bitcoin. Compared with traditional technologies, blockchain represents a new decentralized system based on P2P.

     Industry insiders believe that if this technology can be widely used in the financial industry, the settlement time, transaction costs and counterparty risks of financial transactions will be greatly reduced.

     Masters said the banking industry was struggling with revenue and trying to cut costs by laying off staff, which was unsustainable.

     But blockchain technology has the potential to cut both costs and risks by automating back-office tasks that are currently done manually, thereby reducing the risk of errors.

     Wall Street Journal previously mentioned that Masters was once the "number one lady" in the commodity trading industry on Wall Street. She became a managing director (MD) at the age of 28, setting a record as the youngest female executive in the history of JPMorgan Chase. She has held several senior executive positions at JPMorgan Chase, including as chief financial officer. In 2007, she began to take charge of the spot commodity department.

     As the mother of "CDS", the market size of financial derivatives she conceived once grew to as high as 58 trillion US dollars and is believed to have contributed to the 2008 financial crisis.

     In 2014, JPMorgan Chase's commodities business surpassed all competitors and became the top spot on Wall Street. But in the same year, JPMorgan Chase sold the department for $3.5 billion due to regulatory pressure. Masters then announced her resignation. After a year of silence, she came out again and became the CEO of virtual currency company Digital Asset Holdings. She is now leading DAH to develop a securities and funds transfer system based on the blockchain system.

     Previously, she not only warned the United States that it might fall behind in the blockchain competition, but also vowed to the banking industry that blockchain would change everything.