Cardano Foundation COO Urges Banks to Move Beyond Blockchain Pilots

Cardano Foundation Chief Operating Officer Andreas Pletscher challenged banks to rethink their operations when adopting blockchain, arguing that copying existing financial processes leaves much of the technology’s potential unused. In an interview with Grafa’s Brie Carter at TOKEN2049 in Singapore, published on October 10, he outlined how public blockchains could become part of essential business infrastructure.

Banking Processes Need More Than Tokenization

Pletscher described financial services as an established industry in which several intermediaries share the profits generated by existing processes. Blockchain enables direct interaction between participants, creating opportunities to change those arrangements. Institutions, he argued, need the willingness to make that transition.

“Because by copy paste what you have today, you're not using the tech, right?” he asked.

His criticism extended to the scope of current experimentation. Tokenization, trading and exploratory projects have demonstrated applications, but he believes institutions have yet to fully exploit blockchain’s ability to improve efficiency and reach more customers.

Direct interaction would still require common rules. Referring to SWIFT, the financial messaging network, Pletscher argued that participants could interact without relying on it, provided they adopted standards, processes and procedures suited to blockchain infrastructure. His emphasis was on redesigning how institutions work together and establishing the arrangements needed to support that change.

ADA Governance and Enterprise Control

For enterprises concerned about accountability on a public network, Pletscher described two levels of control. ADA holders can participate in Cardano’s governance and influence decisions about the infrastructure. Businesses then make their own choices about information sharing and the privacy requirements of their applications.

He rejected the assumption that open-source or permissionless infrastructure is inherently insecure. Different processes and organizational arrangements govern those systems, while enterprises need suitable tools to manage their participation. He referred to available privacy tooling without detailing particular products.

The discussion became more direct when Carter asked who bears responsibility if something goes wrong with payments, settlement or tokenized assets. Pletscher placed the emphasis on the consumer, particularly the obligations associated with holding assets and controlling private keys.

Transaction records and blockchain explorers provide ways to trace activity, he noted. His answer focused on asset control and user awareness, leaving institutional liability and compensation arrangements unexplained. He also acknowledged Carter’s concern that personal custody can expose holders to physical threats.

A Five-Year Test for Enterprise Adoption

Pletscher believes the blockchain industry must also mature to earn greater enterprise trust. Its experimental phase attracted talent and produced a wide range of projects. More serious operating practices are now needed, although he cautioned against losing the creativity that keeps developers involved.

He expects consolidation to produce fewer competing chains and currencies, with projects concentrating on applications that suit their strengths. He characterized that process as painful but part of the industry’s development.

Asked what would convince him within five years that public blockchain had become enterprise infrastructure, Pletscher pointed to businesses replacing critical systems with it. He expressed confidence that the industry was progressing toward that outcome and could reach it within the period.

“And if that happens, we have succeeded,” he said.