BNY's CIO Suresh Kumar is experimenting with blockchain The bank will use bitcoin, known internally as BK coins, as incentives to staff for creating certain software services. Eventually they will use it to allow business managers to reward employees for publishing articles or making presentations. The coins can be redeemed for gift cards or other perks.
The objective is to change the mindset around the new technology and to make it tangible in a controlled environment so that BNY can better understand the potential value.
Bank of New York Mellon Corp.BK +0.05% is experimenting with bitcoin, the disruptive digital currency, which it views as a potential new way to conduct financial transactions. But the bank is still working through the challenges of using the open source technology, whose decentralized architecture differs from the traditional computer systems businesses run today. “We want to try it out to see the applicability of [Bitcoin] in our businesses,” CIO Suresh Kumar, told CIO Journal in a meeting at the bank’s innovation center here Wednesday.