Blockchain provides the accountability and transparency needed to restore trust for consumers in financial services, says Thomas Coughlin, CEO of Kinesis Monetary System.
Today, September 15th, marks the ten year anniversary of the collapse of Lehman Brothers, which was arguably the first domino in the global financial crisis. According to a study by YouGov, just 55 per cent of people in the UK today claim to trust banks.
Coughlin said: “Ten years on from the credit crisis of 2008, the financial services industry is in critical need of restoration of trust to avoid the creation of another hype bubble, similar to the one which developed within the housing market in 2008. The crisis led to a chorus of calls from a range of important stakeholders such as governments, regulators and consumers asking for the industry to become more accountable and transparent.
“Today, innovations in technology are allowing greater levels of accountability than ever before. The advent of blockchain technology, for instance, allows for the creation of digitised, shared and trackable sets of data, allowing not only increased visibility but stored, downloadable ledgers for all stakeholders to see.”
The Kinesis Monetary System is a gold-based stable coin, which Coughlin hopes will form part of the new era in a more trustworthy financial system.
“As we look ahead to the next ten years, the stability of the wealth creation industry is pivotal to the growth of leading world economies,” he added. “Blockchain technology can provide the trust and transparency the financial services sector needs to ensure complete visibility of transactions to the myriad of stakeholders on a micro-level, broken down to each second of the day.”