Most people agree that bitcoin’s presence in the financial space is very disruptive.

But Brian Hartzer, CEO of Westpac Banking Corp (Australia’s second-largest bank), is not worried about the digital currency taking over traditional banks any time soon.

He mentioned that bitcoin will likely become a serious threat to banking systems in the long term. Because of this, governments around the world are already clamping down on the mode of payment by imposing restrictions to slow down adoption rates and raise barriers to entry for cryptocurrency businesses.

The possibility of a major rift in the payments sector has caused some brands to react negatively towards bitcoin.

Hartzer reassures those who are deeply affected by the recent changes, “I think it is a bit too soon to panic about it. It is potentially quite powerful from an efficiency point of view. It is one of the things we are keeping an eye on.”

When asked about the institution’s views on the blockchain, Hartzer conservatively said that the bank is carefully watching the development of the technology.

“The development of the blockchain [will] certainly [have] a very interesting and potentially disruptive impact on financial services,” said Hartzer. “Nobody really knows yet where it is going to go to [and] there are a number of limitations and challenges with it.”

Other financial companies worldwide, as well as government organizations, have taken a more progressive stand on the blockchain. Such groups are testing digital ledgers to handle sensitive data and speed up financial processes, including remittances and bank-to-bank money transfers.

“That’s because at its heart, the financial services industry operates on the basis of [banks] managing a central ledger on behalf of the world,” highlighted Danny Gilligan, co-founder of Reinventure, a venture capital firm backed by Westpac.