Since the beginning of 2015, an increasing number of banks and financial institutions have focused on the development of unique blockchain networks and distributed ledgers to create “decentralized” transaction and asset settlement systems.
Despite their interest in the blockchain technology, these banks have demonstrated a hostile view toward bitcoin, claiming that bitcoin is not viable as a currency or a medium of exchange.
“Governments like to control (currencies). They have central banks. They like to control the supply. They also generally like to know where it (currency) is and where it goes… They will not support major currencies that go around borders that they don’t have control over. It’s just not going to happen,” said JPMorgan CEO Jamie Dixon.
Established financial organizations and banks participating in blockchain conferences like the R3 conference and leading programs such as blockchain innovation labs are trying to setup blockchain networks which can settle assets and clear transactions cost effectively and securely.
However, these banks are not interested in the decentralized nature of the blockchain technology nor its core purpose. Their interest derives from their stubbornness to admit that bitcoin is in an important and disruptive technology and that they have been wrong all along about its potential.
“Bitcoin is disruptive, and the reason it is disruptive is precisely why it is so difficult to swallow and swaddle in traditional investment terms,” said California-based information security expert and author of Mastering Bitcoin Andreas Antonopoulos.
“As we saw with the Internet, when the first tier of telecommunication companies wanted to control, polish and make the Internet nice and cozy and came up with Integrated Services Digital Network (ISDN) and Compuserve, a few of the third-tier companies who knew they couldn’t compete on that playing field took the Internet and used it as a Trojan Horse to disrupt the entire telecommunication industry.”
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