Banks are not moving fast enough to adopt the Blockchain and this may lead to their quick demise. Recently in an article authored by Glen Williams, David Gunn, Eduardo Roma and Bharat Bansal, the consulting firm Bain said that banking companies are missing out on Digital Currency.
In its article Bain said about Blockchain, “ Distributed ledger technology , first showcased by the Bitcoin digital currency network, has the potential for such dramatic change—yet most banks have not adequately prepared for the ensuing battles to retain control of customers and of merchant payment interfaces.”
Bain & Company are a management consulting firm who work with top executives all over the world and help them make ‘better decisions’ and convert those decisions into actions and success. Blockchain is a rare opportunity
Bain & Company think that changes to ‘complex pipelines’ that make payments rarely occur.
They are of the view that removal of intermediaries, simplifying ‘connections’ between counterparties and using an immutable Blockchain holds the key to improving speed, transparency and efficiency of payments systems.
The consulting firm cities Bitcoin as a success story and mentions that since 2012 nearly US$ 1 billion in capital has been pumped into various types of distributed-ledge investments. Get ready for central bank supported digital fiat money
Bain hold the view that there will be a nonlinear growth in the Blockchain and they expect two waves.
Wave 1, according to them, would result in the development of systems which focus on international payments while Wave 2 would cause a broader disruption of domestic payments and this would be unveiled by central bank supported digital fiat currencies.Bain foresee a future in which the first wave would be led by financial institutions who seek new innovations and there will be no central counterparty.However, when the second wave does arrive, then […]
