The employees of the two firms are facing rather different fortunesFor those in the city, it’s business as usual. However, the influence of Bitcoin could soon see an increase in jobs in the financial sector, as businesses fight to take advantage of blockchain technology.
This comes after a period of uncertainty in London financial recruitment. In 2016, recruiter Morgan McKinley, reported that financial sector recruitment was down 27%, a fact it blamed on the ambiguity following the unexpected Brexit result.
Today, the firm’s outlook is much more positive. It claims that as Bitcoin and other cryptocurrencies like it drive blockchain development, it will only increase the number of jobs in the city, as financial businesses invest in the technology.
It is thought that banks believe blockchain technology used by Bitcoin and other cryptocurrencies can be used to optimise some elements of the clearing and settlements process, adding security features and streamlining the process. New technologies mean new job roles available in research.
Global banks such as Morgan Stanley and Goldman Sachs have already created their own research on blockchain technology, finding in their in-house efforts that the tech could be used to limit the number of parties involved in financial transactions. Blockchain startups have also been funded in part by angel investors from the financial industry.
This technology is still relatively new in the financial sector, and that has created a need for technology specialists in blockchain development roles. It is this area of employment, Morgan McKinley reports, that will boost London-based recruitment in the financial sector.
Of course, understanding the ins and outs of investing in Bitcoin itself is a priority to banking organisations, leading to recruitment of those with experience in Bitcoin trading.
However, investing in cryptocurrency technology is seen as a risky strategy by some. While the popularity of cryptocurrencies has skyrocketed throughout the world because of its secure nature, the prices of such currencies, including the flagship currency, Bitcoin, has been difficult to predict.
This is caused in part because of its anonymous nature. Bitcoin was created by Satoshi Nakamoto, a presumed alias of a person or a group of people based somewhere in Asia.
To transfer Bitcoin requires nothing more than a line of encrypted code known as a blockchain. No personal details are needed, and no security checks. This has led many to wonder just who is using this currency, and what are they using it for?
It is this anonymity which entices and frightens investors in equal measures. While the potential for profits is high, so is the risk. Prices are prone to fluctuation based on a number of factors.
In fact, just recently, news of a potential regulatory crackdown in Russia, China and South Korea caused the value of Bitcoin to fall by 25%. Cryptocurrency is very much an emerging market, fraught with instability.
This leads to questions on whether large financial institutions should get involved in cryptocurrency technology recruitment at all.
But with the potential of blockchain technologies to revolutionise the banking industry, we’re sure that investment in this digital market will only increase over the coming months and years. That can only be good news for the financial recruitment sector.
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