The banks were never charmed about Bitcoin for multiple reasons. For starters, when the digital currency was first introduced following the collapse of the US banking system, it was hailed as the killer of the traditional banking sector. As time passed, the digital currency gained enough traction to actually threaten the traditional banking industry with its easy and fast transactions at literally no transaction costs.
The fierce competition offered by the bitcoin to conventional banking institutions did not help the cause either. As the rivalry between the digital currency and banking sector grew, the banking institutions have come to realize the importance of the technology behind digital currency. They are so convinced about the potential advantages of the digital ledger technology that many of them have already invested heavily into its research and development for banking applications,
Some of the leading banking institutions in the world to invest in the blockchain technology includes the likes of Goldman Sachs , BNY Mellon , Mitsubishi UFJ , Deutsche Bank and more. There is also a consortium of international banks created alongside a New York based blockchain solutions company for collective development and deployment of the blockchain solution for the banking sector. The consortium has already made some progress with a custom distributed financial blockchain called Corda for the purpose.
Regarding the banking sectors feelings about the implementation of blockchain technology into their operations, one of the tech publication quotes BNY Mellon’s Chief Information Officer, Suresh Kumar saying – “This kind of feels like when the Internet started. There is an expectation that, okay, this is something new and different, so there is some value to leveraging it, and the question is: Okay, what are the implications of that for the traditional services, and what kind of services can be enabled that were not practical […]
