Usually, many financial institutions are conservative by nature. They are always cautious about the big changes. However, the rapid spread of the blockchain has caught the attention of those institutions in recent years. They understood the power of blockchain technology and many large banks started to test and implement it in business models. Surprisingly a lot of blockchain startups are often financed by banks. More than half of the representatives admit that the blockchain will play an important role in the financial sector in the coming years. According to a study, banks will save up to $20 billion in five years through implementing blockchain, which is a tremendous amount of money.
Blockchain technology is able to solve many problems that financial institutions face these days. It provides reliable storage and transmitting data. Moreover, it makes the network infrastructure open and transparent. The activities of most financial institutions are carried out through third parts, which makes services more expensive. Blockchain eliminates intermediaries, therefore the cost of services drops significantly. These features of the blockchain are very attractive even for conservative and over-regulated banks.
In my previous article, I have discussed about banks that were absolutely against cryptocurrencies and now let’s take a look at a few examples of how banks are changing their thoughts about crypto over the year.
As we know earlier this year, Goldman Sachs invested in the Circle cryptocurrency project. This is a big sign that the banks started to support and study this technology. Goldman Sachs said that it plans to become a leader in the use of cryptocurrency among competitors. JPMorgan Chase is also actively involved with cryptocurrencies and blockchain. Banks and regulators globally were struggling to understand what blockchain is. An interesting thing that last few years most of them were against cryptocurrencies, but now they are using blockchain.
The Spanish bank has launched a service based blockchain, which speeds up and reduces the cost of international banking transactions. The Spanish bank Grupo Santander has become one of the leaders in the implementation of blockchain among banks. It has created a payment system called One Pay FX. The primary goal of One Pay FX is the optimization of payments between Europe and South American countries.
The British fintech company Billon develops and implements solutions based on the blockchain for the processing and storage of data. The management of Billon said that the blockchain will greatly change the sphere of storing and transferring personal information between banks and consumers. The goal of the company is a new approach to data management that will allow users to confidentiality and safely control their personal data.
In March of this year, the European Capital Markets Bloomberg Forum took place, where senior executives from leading financial institutions took part. One of the speakers was Marcus Schenck, Head of Corporate and Investment Banking at Deutsche Bank. The top manager admitted that the recent trip to China for the production of a company that collects chips for bitcoin mining showed him that soon the retail banking market will completely change due to new technologies.
In the future — in 5, 10, 15, 20 years, who knows bank accounts will disappear as a phenomenon, and new technologies will replace them. They radically change our system said Marcus Schenck.
Cryptocurrencies have attracted governments and countries like Venezuela that has developed national cryptocurrency, Petro. Some governments have created their own centralized cryptocurrency and blockchain in order to reduce costs and become more efficient. Other governments like Japan, on the other hand, showed support towards decentralized currencies with are meant to “bank the unbanked”.
All in all, the examples of blockchain applications above are a few out of countless other applications. These examples can greatly motivate other nations and governments to advance along with the shift of innovation and implementation of blockchain into their economies. While governments and banks try to implement cryptocurrency, Cashaa has already developed solutions based blockchain technology. However, in my opinion banks will most likely create cryptocurrency for classes, for elites. This will not significantly affect the individual in society. Cashaa provides a tool for masses, which has a lot more significance to the individual in society. Cashaa aims and facilitates sending and receiving money in a fair and efficient manner. If you want to know more about why Cashaa is for masses, check out these articles : “Cashaa: People’s bank”, “Working Class Should Invest In Cashaa”
Cashaa is growing exponentially every single day. We are not a long way from the exploitation of Cashaa’s full potential, and it is just beginning its journey into changing economics and finance.
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