Banks' Misinterpretation of the Blockchain Technology
Established financial institutions and banks failed to understand and embrace the decentralized and transparent nature of bitcoin and the blockchain technology since its birth in 2008. Some bitcoin experts and financial gurus argue that banks still don’t have a solid grasp of Bitcoin’s core values and purposes. Bitcoin as a technology and a currency was created to be used by anyone without the influence and control of a central entity. However, Over the past few months, Wall Street banks, multi-billion dollar financial organizations and groups have joined a blockchain research group known....
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Bitcoiners champion how blockchain technology could undermine the financial system and effectively destroy banks. Bitcoiners mention how banks are going the way of the buffalo and blockchain inspired technology – or simply Bitcoin – will revolutionize the way the world does, basically, everything. Bitcoin, they say, will allow individuals to become their own banks. But, what if the opposite is happening? Many people on the opposite side of the aisle believe that blockchain technology will cut overhead so much that the record profits big banks have made in recent years will look small.....
More and more banks are trying to explore the potential applications of blockchain technology in their operations. Some say that this could reduce clearing times and costs for trades while also providing a more secure approach to record-keeping. However, most banks are traditional in their approach and have a lot of homework to do when it comes to updating their systems, let alone understanding the complex blockchain technology. For Deutsche Bank Research analyst Thomas Dapp, banks need to first solve their legacy problems before adapting to new systems. Blockchain and Legacy Problems. "I....
A survey conducted by professional services firm Accenture has revealed that nine out of 10 major U.S., Canadian and European banks are currently exploring blockchain technology in the field of payments. The survey, titled ‘Blockchain Technology: How banks are building a real-time global payment network’ [PDF] canvassed the opinions of 32 of the top commercial banking professionals in the banking industry. Notably, the transformational potential of blockchain technology in the payments space was under the spotlight. Executives participating in the survey included those from 11 of the top....
A group of banks is testing blockchain technology as a way to better manage reference data for the products they trade. Seven banks, including Citi, HSBC and Alliance Bernstein (AB), has joined R3, a bank consortium studying blockchain, and Axoni, a blockchain technology firm that uses blockchain in settling derivative transactions, to determine if the technology can simplify reference data processes, according to Axoni. Banks Complete Proof Of Concept. Working through the Securities Industry and Financial Markets Association (SIFMA), the companies completed a proof of concept (PoC)....
In an interesting interview with CNBC's Nancy Hulgrave, Peter Smith, the CEO of blockchain.info, claimed that around 100 banks approached his company to integrate bitcoin and the blockchain technology in their banking systems. Peter thinks that these banks believe that they can benefit and make more profits via integration of the blockchain technology. Banks Vs The Blockchain Technology: Throughout the past couple of years, some international retail banks have tried to integrate the blockchain technology into their banking systems and some have even gone far enough to consider issuing....