Blockchain is the Real Revolution for the Banking Industry

Banking CIO Outlook | Thursday, October 11, 2018

The financial industry, with the majority of the potential that blockchain innovation offers for change, emphasis, and improvement has been gradual in its uptake of the new tech. There's no scrutinizing whether blockchain innovation will disrupt and revolutionize the banking industry. Pioneers feel it coming. Some are prepared, and some aren't. Be that as it may, why and how is blockchain going to change or modify banking over the next decade?

Blockchain technology offers a trustworthy, secure and transparent medium of transaction, among people and entities who do not necessarily know each other. It is a revolution and has reinvented the medium of trade. It eliminates all possibilities of fraud and eradicates the fees that typically used to go to the intermediaries.

How does this affect Banks?

Blockchain has proved fruitful for the banking sector. For instance, blockchain firms like Ripple have worked on practices such as helping banks to handle financial settlement by lowering the cost of settlements. This is done by allowing these financial institutions to make transactions directly with one another, thereby removing the need of any intermediary.

Banks are aiming to catch up with the development of cryptocurrencies. Numerous banks are trying to join the pattern by planning their very own brand of blockchain-based online money. This is the best move that the banks could take as their traditional presence isn't required for exchanges of cryptocurrency to be made.

How does this change Financial Markets?

This change will affect financial markets in two ways. In a smaller way, financial markets will witness more cryptocurrencies and blockchain exchanges in their working.

But if we look at a larger picture, the financial markets will need to adapt to this change and predict future moves. For a financial market to have a progressive growth, those within it must anticipate and prepare for future changes. To start with, this implies planning for the participation in and utilization of cryptocurrency. Nonetheless, this additionally suggests financial markets should think about the potential future of the quickly changing landscape of cryptocurrency.

Check out: Top Blockchain Technology Solution Companies

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