Banks will not adopt blockchain fast

[Chronobank]

Since the blockchain — the technology underpinning the digital currency bitcoin — first emerged, people have recognised its potential to transform financial services. The banks have been paying attention. Around the world, they have been setting up labs to test blockchain solutions, carrying out proofs of concept and publishing papers. They are also forming or joining blockchain consortiums, like R3 or the Hyperledger Project, to better work together. Regulators have taken a keen, often quite supportive, interest as well.

This work is not just theoretical. From Nasdaq to Ripple, we already see live blockchain-based platforms. IBM recently said that 15 per cent of 200 banks it surveyed expect to be live with solutions next year. In September I worked with the Swift interbank payment system on its blockchain and cyber security sessions at Sibos, the world’s largest banking conference. A third of the banks that participated told us they had serious blockchain proofs of concept in the works.

So are we about to see blockchain break into the banking mainstream? As a strong believer in the potential of this technology, I truly wish we were.

But as the former group chief information officer of UBS, where we championed blockchain early on, and as an adviser to banks and fintech companies today, I am cautious. My experience tells me it may be a while before we see large-scale adoption in the financial industry.

https://www.ft.com/content/8fc96cbc-8ed9-11e6-a72e-b428cb934b78?utm_source=twitterfeed&utm_medium=twitter

[alien161016]

I believe that Blokchain technology should be introduced into the banking system. This will make it more transparent. In addition, the system will save the information in the security of banks

[gentlemand]

This will make it more transparent.

I don't think any bank particularly wants that.

We'll see some blockchain adoption if and when banks figure out how they actually want to use it. At present it sounds like they want to be cool kids and that's as far as they've gotten.

[xht]

Blockchain gives all users censorship resistance, there is no ID tied to transactions probably due is the reason that banks will never adopt blockchain.

[Seansky]

Banks will not adopt blockchain in my opinion. I think that way since they hate anonymity of their users and they want to be centralized. Because they want to be centralized, they will not adopt blockchain since users are decentralized when using blockchain. Maybe in the future they will adopt it but they will put a modification in it like a user identification feature etc.

[Tyrantt]

No, why? Well because they don't really need to atm and maybe not ever. A large majority uses banks and a tiny fraction compared to those use bitcoin, so it's not making such an impact on them.

[Hoor]

i think it depend on the users of bitcoins if the users of bitcoins are increasing they will surely put pressure on banks and then they must start thinking to accept bitcoins in their banks.

[igorokavg13]

Why do users to store in the Bank bitcoin? You can make money in any currency and to keep in that which recognizes the entire world.

[SyGambler]

who knows what the future may bring , but if they do then most likely they will create a system that will keep benefiting them
we should care less about banks , when people start using bitcoins they won't care about the banks anymore

[Betwrong]

Since the blockchain — the technology underpinning the digital currency bitcoin — first emerged, people have recognised its potential to transform financial services. The banks have been paying attention. Around the world, they have been setting up labs to test blockchain solutions, carrying out proofs of concept and publishing papers. They are also forming or joining blockchain consortiums, like R3 or the Hyperledger Project, to better work together. Regulators have taken a keen, often quite supportive, interest as well.

This work is not just theoretical. From Nasdaq to Ripple, we already see live blockchain-based platforms. IBM recently said that 15 per cent of 200 banks it surveyed expect to be live with solutions next year. In September I worked with the Swift interbank payment system on its blockchain and cyber security sessions at Sibos, the world’s largest banking conference. A third of the banks that participated told us they had serious blockchain proofs of concept in the works.

So are we about to see blockchain break into the banking mainstream? As a strong believer in the potential of this technology, I truly wish we were.

But as the former group chief information officer of UBS, where we championed blockchain early on, and as an adviser to banks and fintech companies today, I am cautious. My experience tells me it may be a while before we see large-scale adoption in the financial industry.

https://www.ft.com/content/8fc96cbc-8ed9-11e6-a72e-b428cb934b78?utm_source=twitterfeed&utm_medium=twitter

We may not see the see large-scale adoption in the nearest future, but some banks for sure will go for it and they will be the winners whereas others will be the losers. Few people are willing to adopt something new and unfamiliar but it's a known fact that in most cases those are open to new technologies win.

[birareru1988]

Banks operate in interest costs from loans. What the biggest interest from lending business. Who wants to business to take out a loan in bitcoins?

[virtualx]

Since the blockchain — the technology underpinning the digital currency bitcoin — first emerged, people have recognised its potential to transform financial services. The banks have been paying attention. Around the world, they have been setting up labs to test blockchain solutions, carrying out proofs of concept and publishing papers. They are also forming or joining blockchain consortiums, like R3 or the Hyperledger Project, to better work together. Regulators have taken a keen, often quite supportive, interest as well.

This work is not just theoretical. From Nasdaq to Ripple, we already see live blockchain-based platforms. IBM recently said that 15 per cent of 200 banks it surveyed expect to be live with solutions next year. In September I worked with the Swift interbank payment system on its blockchain and cyber security sessions at Sibos, the world’s largest banking conference. A third of the banks that participated told us they had serious blockchain proofs of concept in the works.

Everybody copying Satoshi, it shows the true genius of this individual. International transactions are still slower than personally flying there and handing over cash, it's very sad in this age of modern technology. I wish they could do it at least within 24 hours. Blockchain shows this is possible.

[onelove2111]

Such a serious system so it does not turn quickly to implement. It is necessary to completely change all the banks. And for that we need more money. That is why not introduce fast blockchain

[BADecker]

Banks could become Bitcoin escrow companies, while converting bitcoins to cash and back.

A bank could escrow funds transferred to cash-only sellers, making sure the product was received by the bitcoiner, before releasing the bitcoins in cash form.

A bank could escrow cash funds transferred from bitcoin-only sellers, making sure the product was received by the buyer before releasing the cash in bitcoin form.

Banks do this right now, internationally, with big sums of money, in the import/export business... called arbitrage. Why not with small amounts between Bitcoin and fiat?

There is one major reason why banks don't do this. Fiat and banking is a Ponzi. Bitcoin is real.

[Avametra]

Banks operate in interest costs from loans. What the biggest interest from lending business. Who wants to business to take out a loan in bitcoins?

In Germany, the bank provides loans in Bitcoins. It would be nice to and we had such banks. blokcheyn system is good, but not all banks are still technically ready to implement it

[karabasss]

I think this is not due to technical problems, but simply someone does not want the system to work. It is all recognize blockchain and everything associated with him