Also read: BITCOIN 2.0 WILL BE A VERY BIG DEAL
In a report in September, The Bank of England formally recognized the technology’s potential saying that it was a “significant innovation” and that it could have ” far-reaching implications.” Bitcoins associated to the dark web deters large corporations and financial institutions from publicly talking about the disruptive technology and slows integration.
The current banking system used in the majority of the world is based on technology that is over forty years old called Automated Clearing House or ACH. ACH technology batches transactions together and sends them out to be cleared in set intervals of time, this is why most bank transactions take 2-4 days to go through. By integrating Blockchain technology in modern day banking, transactions could be cleared instantly, cheaply, and more securely.
“I believe, and this is my personal view, that blockchain technology will not only change the way we do payments but it will change the whole trading and settlement topic. When somebody with a strong brand and security level establishes it as a reliable service, then the whole industry will follow. That is my personal prediction,” Said Oliver Bussmann.
Oliver Bussmann predicts that the Blockchain will have a much more significant impact into the financial sector than tech giants such as Apple, Facebook, or Google. The Blockchain’s fundamental technology could significantly change the way that modern banking is done all together. Something like cryptocurrencies and the Blockchain were nowhere close to possible in the 1970s’ when ACH banking was created. With the current technology available to us, it is astounding that banks would continue to reject change in favor of the old methods of banking. If Blockchain technology is integrated with modern banking transactions, financial institutions could save both time and money.
The Blockchain is a very efficient and secure technology that could completely flip the financial sector upside down. Though there is still much debate on Bitcoin and its underlying technologies, it is gaining traction in the financial sector and will likely revolutionize many financial practices in the near future.
What do you think about the integration of the Blockchain with modern banking? Comment below!
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Last modified: January 22, 2016 16:39 UTC