The end of the financial services industry?

The end of the financial services industry?


Blockchain technologiy is an important game-changer for big financial institutes and stock exchange operators with major consequences for IT and business models. There are many areas of application: thanks to blockchain, contract law, accounting and even e-voting solutions could soon be withdrawn from state regulation and become a business for private individuals.

Bitcoin is an innovative payment network that uses the peer-to-peer technology to operate with no central authority or banks. It was first created as a response to the 2008 financial crisis. The originating community had a strong libertarian and antiestablishment spin with its strong anticommercial values. However, it is likely that many of the ultimate use cases of the blockchain could become standard fare for established players like large companies, governments, and central banks. Means this the end of nation?

What does this mean for “old” financial centre and entrepreneurs and their companies? Is best future strategy to ignore state rules and to define their own rules?

According to a study, UBS, the major Swiss bank, manages almost 2.1B $ of wealthy private clients. UBS is followed by the two US institutions Bank of America (1,97 Bio. $) and Morgan Stanley (1,95 Bio. $). This is the result of an annual ranking by Scorpio, a London-based consulting firm.

At the end of 2016, 261 banks were active in Switzerland. Switzerland is number 1 and manages 25% of the world’s cross-border assets. 12% of gross value added is directly or indirectly attributable to the financial sector.

The beginnings of the financial system are closely connected with the history of money. Around 1930, almost all the larger states gave up the gold standard. Instead of such a standard, monetary policy measures by the central banks were introduced to ensure price level stability.

The money is managed by the State and the Central Bank. However, the financial crisis in 2008 showed that the system is vulnerable. The crisis has revealed the weaknesses of the current system: corruption, centralisation, risk, charges. Alternatives were in demand. With the invention of the Bitcoin 2009 a currency revolution took place!

The Bitcoin as a digital currency functions like a decentralised booking system, except that, unlike in conventional banking transactions, no central clearing house is required.

All transactions are recorded in the decentralized database (the block chain).

As a result, the Bitcoin system is not subject to any geographical restrictions and can be used across national borders. The core of the Bitcoin consists of a payment system and a monetary unit, which is administered or created decentrally in a computer network with the help of its own software. The system is based on a decentralised database, which is jointly managed by the participants and in which all transactions are recorded in a block chain.

With the underlying blockchain technology, the trustworthy third parties, the bank, becomes unnecessary. Our entire banking system and the state will become superfluous as an intermediary.

The Bitcoin is easily transferable, anonymous, direct. For the founders of blockchain technology, the preservation of privacy played an essential role in the development of privacy. There was also a social aspect. For all people who don’t have access to accounts and send money to their home country, Bitcoins offers the advantage that there are no fees.

Bitcoins are not issued by a bank, but by a large international community. The money system is designed in such a way that only 21 million bitcoins are allowed to circulate in total, at the moment there are approx. 12 million bitcoins in trade worldwide.

Against this background, the Worldwebforum 2018 is dedicated to the topic “End of Nation”. What it means for your business model when the power of the states disappears, you learn from visionary inventors and managers like Sam Rosenblum. He leads the business development of Coinbase, the world’s largest digital currency holder. He tells you more about top 10 crimes on darknet. At the other hand get to know Dirk Klee, Chief Operating Officer Wealth Management and leader of the digital strategy at UBS, world’s largest asset manager.

image: Entertainment One

The WORLDWEBFORUM 2018 is proud to welcome Sam Rosenblum, director of business development at Coinbase, the digital asset broker headquartered in San Fransisco, as keynote speaker. Founded in June of 2012, Coinbase is a digital currency holder and platform where merchants and consumers can transact with new digital currencies like bitcoin, ethereum, and litecoin. Coinbase is building the bridge from Finance 1.0 to Finance 2.0, allowing over 10M people in 30 countries to move between their local currency and digital currency. They have facilitated over $40B in digital currency trading volume

Get to know Dirk Klee, chief operating officer wealth management and leader of the digital strategy from UBS as well. UBS is one of the world’s largest asset managers worldwide. In 2016, UBS was represented in 54 countries and in all major financial centres with more than 1000 branches.

Interested about more informations about “End of Nation” and our speakers?
Visit the WOLRDWEBFORUM on January 18th and 19th in Zurich!