The 2019 World Economic Forum (WEF) in Davos concluded after four days of high-level discussions, bringing together global leaders from finance, technology, and policy. Despite a bear market in cryptocurrencies at the time, blockchain technology remained a focal point, with strong institutional interest and growing recognition of its transformative potential across industries.
One of the most significant developments during the forum was the announcement of Elizabeth Rossiello, CEO and founder of BitPesa, as co-chair of the WEF’s Global Blockchain Council. BitPesa, headquartered in Kenya, specializes in blockchain-based fiat remittance services connecting the UK, Africa, and Europe. Notably, it became the first blockchain company authorized by the UK’s Financial Conduct Authority (FCA).
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The Global Blockchain Council is set to hold its inaugural meeting in San Francisco in May 2019, marking the beginning of formal advisory support to the WEF. Rossiello emphasized that "2019 will be the most critical year for the blockchain industry," highlighting the urgency of responsible governance and ecosystem collaboration. Sheila Warren, WEF’s Blockchain Lead, praised Rossiello’s diverse background and technical expertise, underscoring her ability to unite stakeholders across the decentralized landscape.
Institutional Confidence in Blockchain: 40% See Revolutionary Potential
A report unveiled at WEF by the Global Blockchain Business Council (GBBC) revealed strong institutional sentiment toward blockchain adoption. Among 71 institutional investors surveyed:
- 40% believe blockchain could be the most transformative technology since the internet.
- Over one-third expect companies to publish blockchain development roadmaps within five years.
- Nearly 30% think firms should appoint a dedicated blockchain officer on their board within the same timeframe.
Sandra Ro, CEO of GBBC, stated, “There is no doubt that blockchain has the potential to disrupt nearly every industry—and even reshape key aspects of our daily lives.” This level of confidence reflects a maturing perception of blockchain beyond speculative assets and into foundational infrastructure.
Real-World Applications: Blockchain in Healthcare
While much of the conversation around blockchain centers on finance, healthcare emerged as a standout use case at Davos. Experts like Lata Varghese from Cognizant and Zia Zaman from MetLife Asia focused on practical implementations rather than hype.
The panel deliberately avoided theoretical debates, instead spotlighting Vitana, a blockchain-powered diabetes insurance solution developed by LumenLab—Singapore’s digital innovation hub. Vitana enables secure data sharing between patients, insurers, and providers, streamlining claims processing and improving patient outcomes.
Key benefits discussed included:
- Faster insurance claim settlements
- Secure, real-time access to patient medical records
- Enhanced privacy through cryptographic verification
- Reduced administrative overhead
These applications demonstrate how blockchain can solve long-standing inefficiencies in healthcare systems—particularly in regions with fragmented data infrastructure or low trust in centralized institutions.
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Industry Leaders Weigh In: Divergent Views on Cryptocurrency
Jeremy Allaire (Circle): A Defender of Decentralization
During a session titled Building Sustainable Cryptoeconomic Systems, Circle CEO Jeremy Allaire pushed back against calls for heavy-handed cryptocurrency regulation. He argued that decentralization is essential for digital-age resilience.
“Cryptocurrencies are foundational to the future… If we want society to survive in the digital age, we need tamper-proof, resilient, decentralized infrastructure.”
Allaire criticized the negative stigma surrounding crypto, emphasizing that cryptography underpins modern cybersecurity, corporate data protection, and personal privacy. Rather than being a tool for illicit activity, he sees it as a defense mechanism against surveillance and systemic failure.
Jamie Dimon (JPMorgan): From Bitcoin Skeptic to Blockchain Advocate
Once famously dismissive of Bitcoin—calling it a “fraud” in 2017—JPMorgan CEO Jamie Dimon showed a more nuanced stance at Davos. When asked if he was pleased with crypto’s price collapse, he responded negatively.
While acknowledging blockchain has been overhyped, Dimon affirmed its legitimacy:
“Blockchain is real technology. It’s just a database everyone can access and that’s always up to date.”
This aligns with JPMorgan’s growing blockchain footprint:
- Launch of Interbank Information Network (IIN) in 2017, using blockchain to accelerate cross-border payments.
- Filing of a patent with the USPTO for a decentralized system issuing “virtual deposit receipts”—functionally similar to ICO tokens.
- Recognition by ResearchAndMarkets.com in 2018 that blockchain is key to JPMorgan’s evolution into a leading digital bank.
Nouriel Roubini & Dan Schulman: Harsh Critics of Crypto Hype
Not all voices were optimistic. Economist Nouriel Roubini, known as the “Dr. Doom” for predicting the 2008 crisis, reiterated his skepticism:
“Private distributed ledgers lack trust and decentralization—they’re just rebranded databases sold under the ‘blockchain’ label.”
He dismissed central bank digital currencies (CBDCs) as unrelated to true blockchain principles and mocked the idea of “tokenizing everything,” comparing it to barter systems in The Flintstones. In his view, tokenization regresses civilization rather than advancing it.
PayPal CEO Dan Schulman echoed similar concerns:
- Limited retail adoption of Bitcoin
- High volatility making crypto impractical as payment
- Underlying blockchain tech holds promise, but crypto itself is more of an incentive mechanism than currency
Schulman confirmed Venmo had shelved crypto plans due to volatility:
“Bitcoin’s price swings make it unsuitable as real money for merchants.”
Huw van Steenis, senior adviser to the Bank of England governor, added:
“Cryptocurrencies haven’t met basic financial service thresholds—they’re slow, valueless, and inefficient as transaction units.”
Ripple vs. ConsenSys: A Clash Over Transparency
A panel titled What’s Next for Blockchain in 2019? featured Ripple CEO Brad Garlinghouse and Ethereum co-founder Joseph Lubin. While mostly civil, tensions surfaced over transparency.
When asked about managing ConsenSys and his personal ETH holdings, Lubin declined to comment:
“There’s no data to verify anything.”
Garlinghouse seized the moment:
“Ripple gets attacked for being too transparent—we publish quarterly XRP reports. Others don’t disclose anything and face no criticism. That’s hypocrisy.”
Pressed further on ConsenSys’ transparency plans, Lubin noted it’s a private company with no plans to release operational costs. Garlinghouse countered:
“So is Ripple.”
The exchange highlighted an ongoing debate in the industry: transparency vs. privacy, especially concerning token distribution and corporate governance.
Frequently Asked Questions
Q: What is the World Economic Forum’s stance on blockchain?
A: The WEF views blockchain as a high-potential transformative technology. It has established the Global Blockchain Council to guide policy and foster responsible innovation.
Q: Why did JPMorgan invest in blockchain despite criticizing Bitcoin?
A: JPMorgan distinguishes between speculative cryptocurrencies and practical distributed ledger technology. Its blockchain initiatives focus on efficiency gains in payments and settlement systems.
Q: Is blockchain only useful for financial services?
A: No. While finance leads adoption, sectors like healthcare, supply chain, and identity management are actively exploring blockchain for secure data sharing and process automation.
Q: What did critics say about cryptocurrency at Davos?
A: Figures like Nouriel Roubini and Dan Schulman questioned crypto’s utility due to volatility, scalability issues, and lack of real-world adoption—though many acknowledged blockchain’s underlying value.
Q: How are institutions preparing for blockchain integration?
A: Many are appointing blockchain officers, developing internal roadmaps, and investing in pilot projects—especially in cross-border payments and digital identity solutions.
Q: Was there agreement on regulation at WEF?
A: While consensus on specific rules was absent, most agreed that balanced regulation is needed—to prevent fraud without stifling innovation.
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The 2019 Davos forum underscored a clear trend: while cryptocurrencies remain controversial, blockchain technology is gaining legitimacy as a tool for systemic change. From healthcare breakthroughs to institutional investment strategies, the narrative is shifting from speculation to application.
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