Think Tank Director Tells UK Parliament That Blockchain Is 'Pixie Dust' and 'Magic Wands'

Martin Walker, director of the Center for Evidence-Based Management, dismissed blockchain technology, calling it a "Pixie dust" fad before the British Parliament, Business Insider reported May 1.

Walker, who directs a think tank that aims to improve the quality of executives' decision-making, spoke before the Treasury Committee at a hearing on blockchain in the financial system.

He compared fads he has seen with "Magic wands" and "Pixie dust." Walker said there is no point in considering blockchain as a singular thing, claiming that most developers have strayed away from the original principles of blockchain developed for digital currencies.

Walker admitted that the excitement around blockchain became a "Catalyst" that pushed banks to upgrade certain parts of their operations, such as trade finance.

"Genuine innovation is hard. We've created what one of my colleagues calls 'innovation theater.' If you want to be seen to be innovative, all you have to do is a proof of concept using blockchain. It doesn't matter if it doesn't go anywhere."

While blockchain was originally developed to power digital currencies and enable cryptocurrency transactions, it has also been implemented in other fields like healthcare and real estate.

Financial organizations around the world have found applications for blockchain and invested in serious developments to improve their business models using the technology.

Last month, a Spanish multinational bank Banco Bilbao Vizcaya Argentaria became the first global bank to issue a loan using blockchain technology.

Integration of blockchain reportedly cut the negotiation time for the €75 mln loan from "Days to hours".

IBM, the Bank of Montreal, CaixaBank, Commerzbank, Erste Group, and the United Bank of Switzerland's partnership to develop a blockchain trade finance platform called Batavia, has resulted in the platform's first live pilot transactions.