Malta to see new banks embracing blockchain within a year, expert predicts

Two or three new banks will open in Malta within the next year that will be amenable to embracing blockchain technology and cyptocurrencies, banking expert Roderick Psaila said today. 

Psaila was participating in a panel discussion at the Delta Summit, a conference bringing together digital technology innovators from around the world, and which is promoting blockchain technology and the Maltese government’s efforts to regulate the sector. 

Psaila was responding to criticism of banks’ hesitancy to embrace distributed ledger technology and cryptocurrencies, despite huge efforts by the government to introduce regulatory legislation. 

“We are already seeing new, smaller banks show willingness to adopt blockchain technology, but legacy banks will take longer to come round, because of their systems in place and because they tend to expect higher standards,” he said. 

James Farrugia, partner at Ganado Advocates, agreed that one could not expect the banking industry to fully embrace blockchain technology until a solid anti-money laundering framework was implemented. He stressed that such a framework would have to be acceptable to banks themselves, adding that what was acceptable for operators was very often not enough for banks.  

“Most banks are waiting for a solid anti-money laundering framework before embracing cryptocurrencies,” he said. 

Michael Matthias, the CEO of digital currency Dascoin, said banks needed to catch up with, and accept modern trends and technology. 

“And yet, as blockchain technology becomes more mainstream, it is not farfetched to imagine a near future in which cryptocurrency is used as the coin of choice in everyday payments and transactions,” he said.