20180326 - d10e - Jurgis Petrosius - Partner - Head of Investor Relations - Skycop.com

1. BLOCKCHAIN IMPACT ON
FINANCIAL INDUSTRY
JURGIS PETROSIUS
PARTNER, SKYCOP.COM
MARCH 2018

2. WHAT FINANCIAL INDUSTRY LEADERS THINK
• JPMorgan Chase CEO, Jamie Dimon: “It is
worse than tulip bulbs. It won’t end well.
Someone is going to get killed. (2017
Sep)
• Goldman Sachs CEO, Lloyd Blankfein:
“Something that moves 20% [overnight]
does not feel like a currency. It is a vehicle
to perpetrate fraud.

3. WHAT FINANCIAL INDUSTRY LEADERS THINK
• ECB executive, Yves Mersch: ”Virtual
currencies are not money, nor will they be
for the foreseeable future.
• JPMorgan Chase CEO, Jamie Dimon: “I
regret calling bitcoin a fraud. Blockchain
is real.” (2018 Jan)

4. 1. Blockchain economical benefits and effects on Financial Industry
2. Trending blockchain projects in banking sector
3. Existing challenges

5. 1. BLOCKCHAIN ECONOMICAL BENEFITS AND
EFFECTS ON FINANCIAL INDUSTRY
• Infrastructure costs – possible reduction by a third, c.a. $8-$12bio p.a.
• Cross-border payments:
• B2B ~ $50-60bio
• P2P ~ $3-5bio
• Annual Global economical value - as much as $400bio by 2027
• Almost 10% of GDP will be stored on Blockchain and related technology to it.

6. 1. BLOCKCHAIN ECONOMICAL BENEFITS AND
EFFECTS ON FINANCIAL INDUSTRY
• Security – Centralized vs. Decentralized
• Know Your Customer (KYC)
• Processing speeds
• Transparency - Audit trail
• Reduced cost of risks (credit, operational, fraud)

7. 2. TRENDING BLOCKCHAIN PROJECTS IN BANKING
SECTOR
• Mastercard – PoP (proof of provenance)
• R3 – Corda - instant fiat transfers
• RippleNet – 100+ members
• SWIFT – PoC (proof of Concept)
• JPM Chase – Interbank Information Network
• IBM – Stellar / Maersk BC

8. 3. EXISTING CHALLENGES
• Achieving consensus
• Standardization
• Interoperability
• Scalability
• Efficiency
• Immutability
• Legal uncertainty
• Security
• Liquidity
• Privacy
• Intellectual property
• Regulatory Uncertainty
• Currency control

9. EFFICIENT ECONOMY ?