In a recent interview on the Money 20/20 conference, the Co-Founder and CEO of Interstellar, Adam Ludwin spoke about the financial institutions and why they were interested in the field of cryptocurrency and blockchain technology.
According to Adam, these financial institutions were incumbents and there were two fundamental reasons for them to enter the cryptocurrency space. Adam stated that the first reason was that the cryptocurrency ecosystem and blockchain technology were on an “inevitable march” towards becoming the “fundamental rails” through which value could be moved over time.
He added that the future of the internet could not disrupt financial services in any way because there was no format or architecture which could move value just the way it moved data and this had changed over the last few years. Adam further stated:
“So there’s a sense of well this is inevitable, we better get on this train or else it’s going to be a threat.”
According to Adam, the other reason for financial institutions to adopt the blockchain technology and cryptocurrencies was because big incumbents like Visa who had a lot of influence as a financial institution were still left with the potential of entering plenty of markets. Those markets where they were not an incumbent in and could possibly be a challenger for the rest of its competitors. He added:
“So for most of those institutions, they’re leveraging this technology because they’re actually acting like startups challenging new markets in the same way that actual startups are challenging financial services more broadly.”
Recently, Stellar blockchain gained traction after Tensortask, a subsidiary of University of Chicago’s Polsky Center for Innovation and Entrepreneurship announced a partnership with Stellar. Tensortask was reportedly going to use the Stellar Blockchain and create a market for artificial intelligence.
Furthermore, the new program is part of Google Cloud’s startup program which offers high growth potential and makes it a beneficial platform for Stellar to promote their blockchain technology and also increase its use cases.
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