Analysis: Why Blockchain Will Power The Big Banks In 2016
The full potential of Bitcoin’s intrinsic technology – blockchain – had until recently gone largely unrecognized by the entire financial technology industry as well as the established banking giants of North America, the Far East, and Britain for many years. That was until some of the more avant-garde -among the usually wood-paneled, traditional institutions looking to back the ‘next big thing’ – began coming up with gigantic sums of venture capital. This move focused the attention of everyone one Bitcoin’s role in the mainstream. The giant investments in Bitcoin startups – with no....
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Banks didn’t plan for the blockchain. It just happened in front of them in 2015. But, they have been thinking a lot about its implications. 2015 was the year that banks started to wonder about their blockchain strategy. Banks that didn't have such a strategy were considered laggards. But despite its revolutionary prognosis, the blockchain doesn't signal the end of banking, because the banks aren’t going to use it to disrupt or obsolete themselves. Rather, they will guide it to live within the regulated constraints of their world. The good news is blockchain implementations help banks....
According to an IBM survey that gathered insights from 200 global banks, 15% of those banks could be running blockchain solutions as early as 2017. While 2016 is the year that has – already – seen blockchain prototypes tested and trialed, 2017 will be the year banks start putting blockchain solutions into implementation, according to a new IBM study. “Hurtling” Toward Blockchain. Released today, the study, “Leading the Pack in Blockchain Banking: Trailblazers Set the Pace”, conducted by IBM Institute for Business Value, summed up the interest in blockchain among the 200 banks it surveyed,....
The blockchain consortium R3CEV LLC has added 12 more banks, taking the total to 42. The group of blockchain advocates is also a part of The Open Ledger Project being led by IBM, which aims to create its own blockchain. According to the official press release, the next round of engagement will commence in January 2016 and focus on non-bank financial institutions, including post-trade organizations that settle transactions. Clearing houses and exchanges are good examples. The initiative is now aiming to extend reach to the broader financial services community. The recently added banks are....
Accenture Consulting recently teamed with McLagan, a business unit of Aon plc and a capital markets benchmarking provider, on an in-depth impact analysis of blockchain technology’s ability to improve efficiency for investment banks. “Banking On Blockchain, A Value Analysis For Investment Banks” examined cost/benefit analysis, business applications and ROI. Blockchain technology allows multiple parties to share access to the same data simultaneously with improved confidence. Because different parties typically maintain their own data, processes are usually plagued with inefficiencies like....
Three of the biggest banking corporations in Japan have partnered bitFlyer, Japan’s biggest bitcoin exchange to test the viability of domestic money transfers over blockchain technology. The banks discovered that money transfers over a blockchain were just as fast, if not faster compared to traditional money systems. In a report today by regional publication Nikkei, few details have been revealed, about the banks-led blockchain tests including the crucial snipper of whether or not the distributed ledger used was, in fact, the bitcoin blockchain. It’s merely speculative, due to the....