Bitcoin Forum

Another indication that banks can use blockchain as an ally, instead of seeing as a competition.


https://www.reuters.com/article/us-hsbc-blockchain/hsbc-says-performs-first-trade-finance-transaction-using-blockchain-idUSKCN1IF01X

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We do not need banks in this new economy. A new type of decentralized organization will emerge to help with credits and loans. But banks, as they exist now, will no longer be a utility.

Some banks want to adopt blockchain technologies,but all the banks want to see cryptocurrencies destroyed.
I`m not sure how the blockchain can be more efficient than the ordinary transaction technologies.It still has a lot to improve.

That's right, I agree with your opinion, rather than thinking negatively about bitcoin and Blockchain technology should banks use blockchain for the financial or economic world.

I think that banks can never co-exist with blockchain ever. But, in time, we will be able to create a blockchain technology which can mimic the abilities and services offered by a bank. It will be much faster, safer, and more efficient because technology always aims to make our lives more easier. Thanks for sharing this great article and I truly believe that Hongkong will lay a stepping stone on this one.

you are confusing the blockchain aka the technology with bitcoin aka the currency build using this technology. the banks (some of them at least) see bitcoin as the competition and are scared of it, some others see it as an opportunity to make a lot of money by offering new set of services in the near future.
the blockchain technology however, is different because that is what they can use to build their own currency, and also use for a lot of other things that this technology lets them do.

in short when you hear some bank is considering the blockchain technology they are not talking about bitcoin.

In the era of digitalization at this time I think bank banks in the world will work with the blockchain and they implement a system blockchain in sisitem bank

Don't you know what's inside bitcoin genesis block?

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Blockchain has long been actively used in the banking sector. For example, you can take a cryptocurrency Ripple. Ripple has already signed partnerships with a number of banks. In the near future, I think Ripple will enter into new partnerships with banks.

Adapting decentralized technology in a centralized company makes no sense for them, this technology is the solution for eliminating that centralized concept, but ofcourse banks and governments dont want that to happen so they want to destroy it, to put it simply, we dont need that centralized or middle men on this economy

They don’t see the blockchain as competition; they see Bitcoin as competition. They are intent on milking the blockchain model to improve efficiency in the banking system. There definitely is potential to do that, given the armies of back office staff that banks employ for reconciliation.

Banks do not benefit Blockchain. Bankers hide money from depositors to manage money.

Open Blockchain removes the need for banks as such

its right, I agree with your opinion, rather than thinking negatively about bitcoin and Blockchain technology should banks use blockchain for the financial or economic world.In the era of digitalization at this time I think bank banks in the world will work with the blockchain and they implement a system blockchain in sisitem bank

The idea of using blockchain in banks is something we can consider and hopefully adopt. I mean with blockchain being use, it will be  a lot faster and cheaper when it comes to payment transactions and that is something I think everyone would want. Since blockchain enables transactions to be completed much quicker than is possible with centralized systems, there is less time for someone to intervene and divert payments, or to capture transaction information.

but everything goes back to the governments of each country I guess, if indeed it's more get support, till can deepening it.. the possibility that it will happen, but if on the contrary.. it will still be opposed because of certain concerns. We will know where the times will take us.

blockchain is surely of great use for banks, but the fact that it is created by bitcoin is being used by bank to fuel the wars against it. Bitcoin is a real threat to all traditional banking systems

I think banks really don't have any issues about blockchain technology and we have seen a lot of people from financial sector praised it, it is just that those decentralized cryptocurrencies who relies on blockchain tech is a threat to them. Well this is true that blockchain can enhance or improve the banking system and add more security to your bank accounts, it can also help banks to make faster and accurate international transactions. I also think that it can reduce the fraudulent activities that is happening inside those financial institutions. It will be big if banks will be able to implement an appropriate new banking system with blockchain.

I think governments will not oppose the application of Blockchain technology in the Banks
As far as I know regulation only applies to cryptocurrency and I've never heard of regulations that prohibit the application of Blockchain technology in the Banks or Companies

Yes indeed, because block chain provides the following:

#1. They can be used as a single source of information and hence, for money transfers, record keeping and other back-end functions being the easy, digital, open, decentralised ledgers they are. For instance, most Banks need to maintain reserves with multiple counterparties at once and it would help immensely if they can settle transactions point-to-point as a straight-through process.

#2. The quality and speed of data becomes so high, consistent, precise and so real-time that new revenue streams can also be tapped while offering customers seamless and actually-nimble experiences.

#3. They can reduce human intervention and make it possible for banks to execute and verify transactions with improved accuracy and efficiency.

#4. Since transactions are continuously kept as ‘blocks’ of records, they are secure, scalable and durable- also making the entire process far simpler and fluid than it ever was. They do not just cut paper and costs but also revitalize the ingredient of trust that is quintessential in financial information.

#5. Disintermediation takes off both the risk and expense of counterparties and enables more empowerment for users to control their information.

#6. Possibility of failure or intrusion is almost negligible with these ledgers and hence process integrity as well as transparency goes to a new realm here.

Block chain can help banks transactions easily. Ripple already its a part of bank transaction, major banks should be use blockchain technology, but many countries are not aware of this technology. In near future may be we can see all bank transactions through block chain technology

it seems to me that when the blockchain starts direct interaction with banks and cryptocurrencies it will be a huge financial revolution

Recently i see BTV News about Blockchain Technology and they are dis cause how to help Blockchain to Bank. They want to add a Blockchain system with his Bank Transfer so In This moment Blockchain system can help any kind Bank. Blockchain is a decentralize platform so it can help Bank and Landing calculation Property so it is now very famous in this world.

Blockchain can help banks but banks don`t want to accept the help. Bankers don`t want to risk their money, their stability and their status. They have a lot of things to lose and for now the majority of them aren`t ready for innovations.

in my opinion, most of banks in the world are going to use blockchain for the money transfer in the future  ;D ;D

As i know, already many banks have begun to implement blockchain. So much news was that this would reduce prices, thanks to the blockchain.

Actually, this is a threat to existing cryptocurrencies because one advantage of cryptocurrency to banks is that it is faster to send money using cryptocurrency compared to banks. If this happens, I believe people will choose banks over cryprocurrency because it is more legitimate and supported by the government compared to cryptocurrency.

Banks don't give a Monkeys Uncle about us, our communities, the long road of technical discovery with BTC and the ALTs, all they care about is money, money for themselves, I do hope the banks will all go away and we can have full control of our own money - the banks were once an important part of the monetary system but with Blockchains and decentralized options available NOW, do we really need them anymore? (and the FATCATS that run them).

I think blockchain can help banks. Today, the blockchain technology and the cryptocurrency market are growing rapidly. Most countries in the world are involved in the money market. Traditional banks want to grow and survive, with the help of blockchain. In the future, blockchain will be a solid foundation for banks.

And not just to banks but also to many other businesses.
Actualy banks are experimenting with blockchain technology for a long time now and they will surely implement it in the near future.
Banks maybe don't like cryptocurrency very much but they understand the advantages of new technologies and they want to implement and adopt them for their best interest and profit. So banks interest for blockchain is nothing new and surprising.

Of course, if the Bank is willing to use BlockChain technology then the Bank will cut expenses to pay for its Employees, Besides With Blockchain technology later We do not have to queue for hours at the Bank counter to make transactions. Blockchain technology currently in possession of Bitcoin, is a great future technology. anyone using it will benefit greatly.

I have also thought about that. Blockchain is a revolutionary invention which can be used for many purposes. And its also very beneficial for banking system too. Financial records and transaction system of banks can be modified with blockchain technology. I dont know why they are so against it.

Banks need to use blockchain technology.
But there is no need to encrypt money markets, and most of the time it looks like a mere hype.

you are right, today i see many public is bored with the primitive transaction system so that many public are interested in the blockchain system.

if the bank uses blockchain, then blockchain will save the bank and help the bank from death, if not using blockchain, then the bank will die.

simple but realistic

Of course, Blockchain can be help for the financial instantions include the banks.
Blockchain is the future technology and blockchain is a solution.

With the development of the Blockchain technology, there are many industry applications and processes are using Blockchain concept for their core functionality. Blockchain has following characteristics;
1.       Decentralized
2.       Trustable (Trust inbuilt-No need trust)
3.       More secured
4.       Redundancy addressed

With above characteristics, Blockchain is penetrating into more applications and processes. Even bank can use this technology for their transaction recording and many other applications using Open and distributed ledger architecture.

It is indeed they can maximize the benefits of Blockchain, and I cant see they make it as the competition since the first time. The only bank and governments worry about is lack of controls. Which is exist in many cryptocurrencies because of the power from Blockchain. the technologies that Blockchain offers can be helpful to achieve a decentralization.

In this world blockchain is a decentralized and modern technology. Recently too many country understand blockchain system and to Many Bank want to use blockchain system because day by day people know how to use blockchain. When people don't understand what is blockchain on the time people can't understand how to use blockchain but recently so many country already use blockchain system for his company so it is a very helpful for any kind of bank transfer.

The blockchain technology will help in the long run.

Utilization of blockchain in banking will definitely bring many positive impacts. The previous system that used the central server was limited with the presence of a third party, by using blockchain the access to financial services will be wider. In addition, customer and institutional data will be safe and efficient.

Banks, despite the enthusiasm for the Blockchain, are wary of such companies, claiming that the blockchain enterprises are "high-risk" traders. Perhaps their skepticism is dictated by fear to accelerate their own doom.
Regardless of who will prevail in the end - the irresistible power of technological change or the immovable array of financial services, the most conservative branch of the world - the clash between them promises to be hot. ;)

In my opinion blockchain is end of the banks. If it is not it is worthless to me. Banks are making people suffer in their entire life. Blockchain is a solution for all these matters.

I believe it's high time the banks and the government stopped shying away from the truth and get to do proper and open understudy of the blockchain. Just like you said there are more advantages to the banks and also the government when and if they get to adopt the blockchain into their operations. One of the top Directors of central bank did come on air some time ago that they have set up a committee to look into the study and how it can be adopted for use. No positive news yet but I know they know the truth already.

I think they will love this technology. And they are against bitcoin right now.But maybe in the future they will want to catch it when they realize they can not stop it. Maybe they will say "yes you must use our internet banking wallet for cryptocurrency" But these are just guesswork. Thanks

Instead of these banks seeing blockchain as a threat to their old centralized system, it would have been better if these banks embrace blockchain tech. Technology cannot be destroyed not to even talk about blockchain. No one is ready to compete with these banks and there is no way crypto is going down too. I am pretty sure they worry much about the volatility of these currencies, they would have grab this cryptos by now.

Recently, very often there is information that the banking system is also beginning to implement a blockchine for its systems. But it seems to me that this is more connected with the management of the system, and not in order to attract more users .

Blockchain reduces the cost of verifying transactions, so I'm pretty sure banks are already looking into the benefits of bitcoin.

If banks can spend less money, they will. As with any business, the ROI of the banking industry is a major concern.

Blockchain systems could be far cheaper than existing platforms because they remove an entire layer of overhead dedicated to confirming authenticity. In a distributed ledger system, confirmation is effectively performed by everyone on the network, simultaneously. This so-called ‘consensus’ process reduces the need for existing intermediaries who touch the transaction and extract a toll in the process. In financial services, that includes those who move money, adjudicate contracts, tax transactions, store information and so on.

A Quick Overview of Blockchain
First, however, let us briefly review what blockchain is, for those needing a refresher.

Where conventional financial transactions are facilitated by centralized financial institutions, a blockchain is a decentralized system in which encrypted transactions are entered into a ledger that is shared by multiple parties. A greatly simplified explanation of the how blockchain transactions work is as follows:

1. The transaction is encrypted and added to a distributed ledger.
2. Multiple parties with access to the shared ledger verify the details of the transaction, without compromising the identity of those involved.
3. Verified transactions are added as a permanent, irrevocable part of the shared ledger.
4. The transaction is completed.

Because only verified “blocks” of transactions can be added to the ledger, there is no need to re-examine the authenticity of any transaction once it has been verified and entered into the ledger.

Let us now look at how blockchain is impacting the banking industry.

Blockchain can help traditional banks if only government banks accept Bitcoin and other cryptocurrencies as a payment.

I hope the bitcoin is not united or entered into the bank system, it is very detrimental, because the bank system can harm its customers .. therefore bitcoin more own and independent.

One of the most talked-about topics in the financial services industry today is blockchain.Utilizing blockchain technology allows for greater trade accuracy, and a shorter settlement process.When identity management is moved to blockchain technology, users are able to choose how to identify themselves and who will be informed. Actually technology is everything if all get used to it.

Blockchain aside from Bitcoins has already been used in hospitals and schools and at many more ... So I think maybe the banks are already into adoption blockchain since it provides a prefect and fool proof method for.. documentation and their passing from one point to another..
They won't accept Bitcoins but yes.. to block chain maybe they are already accepting.
We must not forget that .. " block chain is a technology and Bitcoins is it's application and it have many more applications and banks obviously can use it "

I think banks will not be able to use the blockchain system, this will be very contradictory.
The centralized bank system while the blockchain is peer-to-peer.
Banks try to get as much profit as possible while in blockchain transaction costs are very few.

But the banks needs to understand this,, currently they are treating it as a competition only. Some banks even paid to spread negative news related to bitcoin and crypto.

I mean with blockchain being use, it will be  a lot faster and cheaper when it comes to payment transactions and that is something I think everyone would want. Since blockchain enables transactions to be completed much quicker than is possible with centralized systems, there is less time for someone to intervene and divert payments

using blockchain in the bank is something we can consider and hopefully adopted. I mean with blockchain being used, it will be much faster and cheaper when it comes to payment transactions and that is something I think everyone wants.

Blockchain system is a very valuable system. That's why Bitcoin is so appreciated.
It's a blessing from technology and the digital world.
The banks are trying to integrate into the blockchain system. On this count, they will make billions of dollars a year.
In the following years we will see more of BlockChain.

Blockchain can be used by the most of the banks around the world. And I believe that it might be popular because of its distributed ledger technology and decentralization. We can save a huge time if banks adopt blockchain. We will not stand in line to get service or any other banking issue.

I believe the technology behind bitcoin can make alliances with the current banking system. There are some banks that use blockchain, which is a sign of optimism in the near future. The security, safety and speed of transactions, the banking sector encountered in the past years will be resolved.
 ;)

I agree with this since there is a lot of feature that blockchain can improves the banks in any factors.

I agree with your opinion, rather than negative thinking about bitcoin and blockchain technology should use a blockchain bank for the financial or economic world. In the current era of digitalization I think they are implementing a blockchain system in a sisitem bank.

Cool! A very cool example of how a blockage enters our world and will soon become along with other currencies

blockchain will revolutionize the banking and finance industry, it's just a matter of time. Very soon these big banks will realize the importance of decentralisation and security been made almost perfect with the Blockchain technology and jump right on the train 

yes. i agree with you. Central banks across the world are exploring the potential for shifting parts of their payments systems on to blockchain technology or even using it to launch digital currencies and Trade finance is still mostly based on paper, such as bills of lading or letters of credit, being sent by fax or post around the world so many bankers to be crying out for modernisation. so believe that blockchain is the obvious solution especially as numerous parties need access to the same information.

Vitalii described three key issues for banks in building their KYC programs:

Duplication of efforts. Today, people need to go through the KYC process for each one of their banks, as well as with any particular bank’s subsidiaries in most cases. Conversely, banks need to identify and verify each one of their customers, even if they’ve already been identified and verified by another financial institution. This is clearly a time-consuming, wasteful process.
Limited digitization. Many banks, “even in very tech-savvy jurisdictions,” Vitalii said, “still use physical forms with the implied administrative and customer burdens.” This is another legacy of a pen-and-paper era.
Spotty audit trail. “Compliance departments and regulators struggle to identify an impartial and immutable audit trail,” Vitalii said, further adding to delays and expense in a business, where today’s customers expect lightning-fast service.

I think that's true because if the bank uses blockchain then all transactions will run easy, cheap, and fast. Even, we can do bank transactions for cross-country just a few seconds. Especially,  if the blockchain is applied to a credit card or debit card then I can take my money in a bank in another country while on vacation. I do not have to adjust the currency of the country that I visit. It will make me very facilitated.

No one in their right sense will have any argument against blockchain and i am sure blockchain will be implemented to most of the businesses around the world in the next ten years, the are afraid of bitcoin as a decentralized currency and not blockchain.

yes, but it will generate incovenience

I think here are three ways using which blockchain will help banks in their daily routine:
1. Settlement and clearing: We all know that big investments banks spend billions of dollars on these jobs. But it is estimated that these banks can save a huge amount of money spend on clearing and settlement with the help of blockchain technology.
2. Payments: Many banks across the world are trying to shift their payments system on the blockchain technology. This would offer higher security and simultaneously reduce the costs involved in processing the payments between their clients and organizations.  Blockchain technology will also eliminate the intermediaries involved in the payments processing job.
3. Know your customer: Financial institutions spend a great deal of money to meet the KYC norms. These norms aim to reduce terrorism and money laundering activities by requiring the banks to verify the identity of their clients. In this case, the blockchain technology would allow the organizations to access the individual verification of each other’s clients. This will reduce the administrative costs.

Definitely it will help the banks make seamless payments, I'm definitely rooting for this, banks and blockchain is a great idea, with the technology of blockchain I think that payments will be the greatest asset here, since blockchain technology is used, higher security and fast payments would be made, hassle-free and provides high security also.

The reality about this issue is that banks need blockchain technology but blockchain technology don't need banks. ;D Blockchain technology is on trendwhich fiat money have missed due to it's stability. It might be that banks want a much safer and faster transactions arround the world. A lot of people prefer to use blockchain technology rather than that of fiat money but will help banks with some upgrades and security.

Well banks does not see blockchain technology as a competition but they see it with bitcoin. Blockchain technology will greatly improved the banking services if they will integrate it in their system. They can easily monitor the daily transactions of clients through the blockchain and the clients can also monitor it. But bitcoin on the other hand is a threat to the banks thus the banks are also evolving so they cannot be left behind.

Blockchain will be very useful for banks in ledger keeping and transparency so bitcoin is finite example how data can moved recorded in open source platform

Of course, Blockchain will greatly help banking and many positive things if banks use the Blockchain system, because with the Blockchain system every transaction will be easier and faster, and important customer data will be stored much more safely.

Yes that blockhain is a sophisticated technology and gives us a sense of comfort and security. If it can be implemented properly then blockhain will revolutionize the existing financial system in the bank. This will make the existing system getting better and the bank system will become stronger, safer and have very high mobility.