Banks Would Prefer Blockchain over Apple Pay, Study Reveals

By January 12, 2016Bitcoin Business

SEC Approves Overstock Plan to Issue Stock Via Blockchain. newsbtc bitcoin news The increasing competition in the finance sector has pressured banks, financial institutions and existing payment networks to re-consider the threat of emerging innovative financial technologies such as Bitcoin and its underlying technology, the blockchain technology.

A growing number of multi-billion dollar banking groups and multinational tech corporations have begun to deploy their own blockchain labs, Bitcoin-focused groups of researchers, and even digital currency dedicated venture capital funds to maintain close relationships with first-tier blockchain startups.

As a result of the rising interest towards the distributed ledger technology in the conventional finance sector, total investments in 2015 in the Bitcoin space totaled nearly US$1 billion, surpassing the venture capital growth of most industries globally.

Feeling the pressure and understanding the threat of rapidly evolving decentralized currencies, banks have begun to disburse significant portions of their budget into IT management and security improvements, to gradually enclose the technological gap between next-generation technologies like Bitcoin and existing financial systems.

“This is up significantly on 2015, when just over half (52%) increased their IT expenditure on payment technology. Most tellingly the proportion of banks reporting significant increases in payments’ spending (over 6%) has leaped from near 10% to almost 30%. Ovum says that such a major shift is representative of the transformative levels of change happening in the payments market,” reported Ovum, London-based independent analyst and consultancy firm specializing in IT.

Amid growing security concerns, banks and financial institutions have begun to prefer the blockchain technology over recently introduced financial networks like Apple Pay, which many so-called financial experts believed it would overtake Bitcoin in various ways.

Interestingly, Apple Pay failed to capitalize on one limitation of Bitcoin which experts considered Apple to have an edge over; consumer interest. Despite the established financial infrastructure and funds necessary […]

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