Will BTC fall when the 4 largest banks launch their own digital currency in 2018 (!)
Back once again with my block chain obsession! Part 2 (!) on how the block chain will shape the banking environment. (Find part 1 here: https://steemit.com/blockchain/@linnie/block-chain-will-enhance-traditional-banking-block-chain-is-a-direct-threat-to-swift )
UBS, Deutsche Bank, Santander and BNY Mellon planning to launch the digital currency in 2018.
Four of the largest banks in the world are jointly creating a new digital currency. UBS, Deutsche Bank, Santander and BNY Mellon plan to launch the currency in 2018. They announced this Wednesday in The Financial Times.
The banks want to mainly use the currency because of the underlying block chain technology. The aim is to use it for automatic handling and settlement of financial transactions, which could save them billions in costs.
Tens of billions
Current applications of block chain are still very experimental and it is still going to come very uncertain whether the big promises. But if that happens, it could mean that third parties which are currently necessary for securing, recording and monitoring transactions and contracts, such as banks and notaries, would (partially) be superfluous.
The aim of the new currency of the four major banks to smoothly handle payments, which ultimately means that less staff is needed. According to a report from research firm Oliver Wyman, banks worldwide are now spending tens of billions of euros on handling payments.
Other large banks and central banks including the Dutch Central Bank(!) work on their own digital currencies and block chains. They would thus become less dependent on the block chains of digital currency bitcoin and ether, which are now widely used. Those currencies fluctuate greatly in value, therefore banks find them unsuitable.
At block chain forums sounds much skepticism about the plans of the major banks to develop their own bitcoin- and ether variants. According to many developers the power of block chain technology ís that it can make the banks redundant.
What are your thoughts?
Nope. The banks are working on a closed system on which they can transfer financial instruments between institutions, so that they can reduce transaction and back office costs. They aren't creating a currency that will compete with bitcoin, and have no incentive to do so.
I wouldnt bet on it. I have been banging on about this problem for over 12 months and my message is just getting through..!!
BLOCKCHAIN + DERIVATIVES = GAME CHANGER
Expect to see a new Derivatives Digital Currency that WILL replace the $USD as the Global Reserve Currency.
Regardless the form "government tied banks" take, they will always rely on the initiation of force when it comes to "their money". People will always look for alternate ways of voluntary exchange.
Banks will implement bitcoin as a payment !
I do not think banks have the motivation to do so.too big a risk in relation to benefits.
Nearly. Expect to see a new Derivatives Digital Currency that WILL replace the $USD as the Global Reserve Currency.
BLOCKCHAIN + DERIVATIVES = GAME CHANGER
This is a great article. I have been banging on about this problem for over 12 months and my message is just getting through..!!
BLOCKCHAIN + DERIVATIVES = GAME CHANGER