One, the confusing narrative around blockchain. Settlements don't require any kind of "proof of work" mechanism. It's basically a shared ledger where only permissioned parties can access/write. Some are calling it "Distributed Ledger".
Surely, someone is going to point out that "proof of work" is not the definition/requirement for blockchain. But, using it interchangeably and confusing the bank "blockchain" with the cryptocurrencies "blockchain" is causing the confusion and euphoria.
Second, settlements don't even need "coins". Cryptocurrencies use "coins" as an incentive mechanism. In PoW, you earn coins for securing the network. In PoS, you stake your coins to secure the network and earn fees.
But, if you have a permissioned, private blockchain there is no need of "coins" because there is no incentive structure. Will DBS earn extra coins for each transaction in the blockchain because of staking or something? If not, then these "coins" are just numbers to enumerate position sizes. In which case, why even call them "coins" and not "settlement amount in x currency"?
Friend runs settlement infrastructure for a large bank. It's not sexy work. He has to fight for his budget. His TL; DR with a lot of this is it has made getting necessary infrastructure upgrade approvals easier.
Been needing to unify wire confirmations with some esoteric trade settlement system? Talk about Ripple. Adding real-time functionality to a net settlement system? It's a "distributed ledger". Boss gets a press release and maybe a glowing write-up, IT gets its kit.
It sounds more rational than that. Blockchain announcements make headlines. And blockchain headlines are driving stock prices . There are numpties in the mix, but I don't think it's them.
One of my previous companies, we had people working on 'far reaching ML and AI stuff'. What they were actually doing was calculating euclidean distance between users to build a recommendation engine. Data size was around 100-150 items but every user had access to max 20 items. Questions about - Do we really need a complete recommendation system to select from 20 items? Fell on deaf years.
Great press for the manager and IT gets to show off something new.
The problem with this kind of cryptocurrency hype is that Average Joe is putting money into bitcoin because "I read DBS is using blockchain so bitcoin will go up".