5 Reasons Banks should be Afraid of Blockchain & Cryptocurrencies

Figure 1: Major Banks’ Blockchain Initiatives
  1. Payments: Blockchain technology could facilitate faster payments at lower fees than banks by eliminating the need to rely on intermediaries to approve transactions between consumers.
  2. Clearance and Settlement Systems: Blockchain technology and distributed ledgers can reduce operational costs and bring us closer to real-time transactions between financial institutions.
  3. Fundraising: By providing blockchain companies with immediate access to liquidity through initial coin offerings (ICOs), the blockchain is creating a new, crypto economic model of funding that unbundles access to capital from traditional financial services.
  4. Securities: By tokenising traditional securities such as stocks, bonds, and alternative assets, the blockchain is upending the structure of capital markets.
  5. Loans and Credit: By removing the need for gatekeepers in the loan and credit industry, the blockchain can make it more secure to borrow money and provide lower interest rates.

--

--

--

Meedah Group Limited is a boutique consulting and advisory firm. @meedahgroup meedah.com

Love podcasts or audiobooks? Learn on the go with our new app.

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
Meedah Group

Meedah Group

Meedah Group Limited is a boutique consulting and advisory firm. @meedahgroup meedah.com

More from Medium

Crypto Fairies: roadmap

ArenaCFx Market Insights Report for April 2022 — ArenaCFx

What is Cryptocurrency? Why Should You Start Using It?

DApps Explained