Bitcoin Forum

Hi,

It seems that more and more banks are experimenting with Blockchain technology.  Is this likely to cause the Bitcoin price to go up, even if its the underlying technology rather than bitcoin as a currency that the banks are interested in?

Banks using blockchain technology will raise awareness of cryptos, might bring more users into bitcoin, but not enough to move the prices. If banks use THE bitcoin blockchain, it will affect bitcoin price a lot, since they need to buy bitcoin to send transactions to the blockchain.

As long as banks don't implement bitcoin as a currency or make inform their users about it the btc price won't go up "just because banks are using bitcoins technology" nobody would know about bitcoin and just use fiat.

I don't think that it is likely that it will have any effect. It really depends on if Bitcoin is involved in these scenarios.
Even if banks use the blockchain technology for something, they are still banks. I thought one of the reasons for using Bitcoin was to get away from them, is it not?

I think yes it will affect bitcoin price. Blockchain is one of the biggest advantage for bitcoin and its use. Giving other forms of currency or digital money this ability , will definitely affect bitcoin. But one thing to note is that those currencies won't be as transparent as bitcoin so bitcoin will still be a better option versus them.

Nobody cares what technology banks use. I'm not being cold saying that - it's true. People put money in banks and withdraw or get loans. All they care about banks is if the tellers are friendly.
Most of the time people have no idea what banks do with their money, and much less what thechnology banks use.

So short answer, it may not even bring Bitcoin awareness.

It will affect (positively) the prices once the banks start using THE bitcoin blockchain and Barclays is the first one to experiment with that, I'm sure others will follow suit. A new blockchain with few nodes won't be nearly as effective or safe as bitcoin's blockchain due to it's network efffect.

when this happend this will be the final step, this will raise awareness of cryptos and if this happend more ppl will start to use the BTC, so in teh end price will raise for sure.

so i think that yes, if banks start to use it price will be affected.

Before the information of blockchain is implemented in banking system, there is no chance for bitcoin price will rise. People will start buying more bitcoin

and it price will going up when there is a good thing that many banks area really go for it. One or two banks that implemented it wont change the price

since its like a trial to others banks

yeah, i really don't understand how banks plan to use independent blockchain technology (as in, independent of the bitcoin network)

"Hey look we made a database entry on our branches ledger, and then we're gonna make a hash of a bunch of those entries, and send it to all the banks in the network". I mean, sure, by centralizing the network, the blockchain does not need any incentivization (in the form of block rewards) to maintain security... but surely the banks already use some type of distributed ledger system already. And surely the distributed ledger system they already use has some measure that verifies that everything is legit.... otherwise, things were really just a house of cards to this point. The only thing that adding blocks to the distributed ledger does it provide a means to maintain consensus and secure the network. And in a centralized system, both of these things are moot and/or have much easier ways of being achieved.

While the above might not communicate precisely what I mean, the following video sort of encapsulates how I feel about Big Banks thinking they can use "blockchain technology" to their own ends.

https://www.youtube.com/watch?v=Lg8ByjjX0Xo

Many investors will definitely feel secure when they see their banks using blockchain tech... And they'll probably embrace it, by buying some Bitcoins. I wouldn't like for blockchain technology to be associated with banks. But it definitely would give Bitcoin a good impression :)

Using blockchain doesn't necessarily mean buying Bitcoin. The blockchain can be serve as trustless record ledger.

You gotta spend a teeny bit to get your entries on there.

I can see the bank meetings now. 'So this week we have several thousand entries to make. Did you, er, buy some of the, er, tickets?'

'Tickets? The Bit---'

'DON'T SAY THAT WORD.'

Great question.

answer: NO

It doesn't mean buying Bitcoin directly, but you are using Bitcoin. If your infraestructure uses the blockchain, then it's using Bitcoin even if you think you don't directly. These miners are getting paid processing every transaction your bitcoin-blockchain based business makes, so you better hope that Bitcoin is healthy. This gives entrepreneurs using the blockchain an incentive to directly invest in BTC as well.

If banks use the BTC blockchain in the future then of course it will effect the price. It'll send the price to the moon. If they use the BTC blockchain then it means they will have to temporarily convert currency into BTC whilst they transfer that money to wherever they're sending it. To transfer it they're buying BTC with the money they're sending so of course it will effect the price.

It'll be incredibly bullish if they start using the BTC blockchain, if they decide to use blockchain technology then the BTC blockchain is the only sensible way really, it's fast & incredibly secure, something banks will be have to ensure.

they will simply use their own version of the blockchain. it will show the blockchain as technology has a future. as far as having an impact on the price? nope.

I still would like to know what a centralized bank version of there own blockchain would look like.  Pretty sure I will laugh at it.

No, but people using bitcoin will affect banks.
It is the other way around.

its just a matter of when, but for all I know I can be dead before this happens.

anything can happen within a day, so if you live to see it yay!

yeah, the day this happens its because most people are already using bitcoin.

so i say dont worry if the bank affect price, worry about if theres any new users we can introduce the coin.

I think the reason a lot of CEOs distance themselves from mentioning Bitcoin is because they know Bitcoin has a past of crypt-anarchysm and all those Silk Road incidents don't help selling them product, but all in all they are still promoting Bitcoin since they promote the blockchain.

blockchain and banks..

well for one, banks dont really care for much for bitcoin cause if they really wanted to get in the game, they can offer a numerious sum on like coinbase or other private companies.

The banks would NOT have to temporarily convert currency into bitcoin.  I could see them sending blocks of fed notes (1,000,000's  100,000's  10,000's) with marked satoshi's/colored coins.  Of course they would still have to pay transaction fees with bitcoins.  I believe it would still be bullish from Bitcoin being acknowledged.  It just would be a way more subdued trip to the moon since they would not need a billion dollars of bitcoin to transfer billion dollars of fed notes just a few marked satoshi's.

Can you please elaborate on how the block chain can be used to send fed notes (or other non BTC transactions) without using actual bitcoins?

It will be using actual bitcoins, just fractions (colored coins).  It will be like Nasdaq's experiment where hey are planning to transfer stocks on the blockchain, or the transfer of property deeds or other assets using the blockchain.

no because, many banks will only build from scratch their own centralized blochchain, and this might potentially, go against bitcoin and impact its price in a negative way

with a coloured coin implementation all you need is a global standard that a red satoshi = 0.01, a blue satoshi = 0.1, a green satoshi - $1,  then by sending 3 satoshis you can send $1.11. And if I mkae a purple satoshi $1,000,000,000, I can send $1,000,000,000 with 1 satoshi.

But that is by the by, Banks will NOT use bitcoin unless they can get themselves comfortable with receiving bitcoins from unknown parties, or ensure that parties identify themselves - ie meet money laundering regulatory requirements.
What banks will much prefer is a closed loop system where they act as gateways and send IOUs around a distributed ledger amongst parties they trust (sound familiar). Banks don't care that they are trading IOUs and fractional reserving - that's what they do anyway.

Now that system is in many ways inferior to bitcoin, so bitcoin will continue to exist, but it will give the banks enough instant transaction and cross border ability that for most sheep using bitcoin will be too much hassle for not enough saving.

Barclays isn't the only financial institution interested in the blockchain. UBS has set up a blockchain "lab" in Canary Wharf and Santander is also experimenting with the technology as well.  Many others will follow it, try to embrace bitcoin's technology and compete with bitcoin.

The blockchain is a powerful technology mainstream adoption by financial institutions into the tech will increase public awareness and support of new ideas and Bitcoin would likely receive a benefit from perception changes.
In other words in the long run perhaps through relationships.

Even if the banks come up with their own version of blockchain technology i won't trust that. The question here is whether it is decentralized and for banks no matter what they do, they need to insert the codes into it so that if something happens they can always pull the plug or find a way to fix it. That's bank and the banking system we all know about. You can see the same version of altcoin which are basically centralized and controlled by the company that issues it.

It's possible that banks using their blockchain technologies could breathe new life in the speculative price of bitcoin.

As an example, Ripple is trial testing with banks and remittance companies like western union. The main trading platform for Ripple is RippleTrade, and one of the active currencies in that network is Bitcoin.  If the Ripple network is adopted by the big banks, it could give a big boost to bitcoin trading volume.

This is a very interesting subject. I think if banks were to use blockchain technology, it might give Bitcoin a boost. Then again, it might hurt Bitcoin's price too. I do not know for sure what would happen. But, I think it would surely bring some legitimacy to Bitcoin though if major banks use the technology that powers it.