Bitcoin Forum

How big banks are paying lip service to the blockchain

IBM has high hopes for blockchain technology. The IT giant announced on Tuesday a laundry list of plans to use blockchain tech and to help developers do the same. IBM (IBM) will offer tools through its cloud service for building blockchain apps, and it will open up IBM "Garages" in London, New York, Singapore and Tokyo for experts to collaborate with developers on blockchain tech.

https://finance.yahoo.com/news/big-banks-interest-in-blockchain-r3-052723646.html#

I'm afraid of big companies like IBM creating such technology, as I fear it's a direct stab at Bitcoin's survival. If IBM creates a 'coin', other companies are more likely to get on board with their tokens than they would with Bitcoin. I could be completely wrong, but when crowd-controlled open-source goes up against proprietary closed-source, typically the corporations win in the end.

I disagree a bit. A bank blockchain coin would require the bank to operate all the machines at a staggering cost. Bitcoin provides incentives to enter a market and compete for coins beyond anyone's control. A bank coin is a coupon to be used at one place under the terms you are given. The value would be determined by the bank and would be a work of absolute fiction. The supply, the distribution, everything would be controlled by the bank.  
I would not even consider using such a system. It has been tried by many now and I have not seen a single success. Ask the Canadian government how "mintchip" is doing.  ;)

You have a valid point about mintchip being a colossal failure, and I don't know exactly why that technology failed, but the banks technically already control the value, supply, and distribution, and already operate their network at a staggering cost. If anything, blockchain technology would reduce the cost associated with running the network and even provide a solid ledger to balance.

The only real obstacle I see for the banking system making use of Blockchain tech, is the revamping of their systems: why fix something that works and makes a ton of profit by the various loopholes available. If a new system is needed, it would be easier to create that optimal banking system outside of the already established bank's jurisdiction, and unleash it to the world hoping it catches on so the establishment can fail without having to pay any repercussions.

Clever move illuminati, clever indeed

I see what your saying and it all could happen that way. My hopeful thought is that because banks are not able to leverage the massive numbers of users that bitcoin has it should be much more expensive than the bitcoin network. As you point out, people are paying now and if they don't know the difference they may well pay for this also.
For me bitcoin is the only option because there is no justice, just us.