[2019-05-21] Is Banking Culture Slowing Down Blockchain Adoption?

[S3cco]

Is Banking Culture Slowing Down Blockchain Adoption?
https://bitcoingarden.org/is-banking-culture-slowing-down-blockchain-adoption/

Unless you’ve been living under a rock, you’ll have some idea of what blockchain is, and the effect it’s having on industries on a worldwide basis.

We often hear the phrase ‘disruption’ when blockchain is mentioned, and that’s as good a way as any of describing what it does.

It ushers in change, for the better. It drags entire industries kicking and screaming into the modern era.

There’s one industry that’s stubbornly dragging its heels though.

Traditional banking.

“It’s ironic that the one industry that arguably stands to benefit above all others from this exciting new technology is the very one that seems most unsure about it,” commented CEO of ATRONOCOM, Thomas Koller.

The head of digital market assets with Credit Suisse, Emmanuel Aidoo, has previously stated that it is banking culture that has been the primary reason behind the slow adoption of blockchain technology by the financial industry....

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[CryptoBry]

This is interesting. So the banking industry is opting not to see the advantages and benefits of the blockchain technology and just buried their heads in the sand assuming that innovations can still happen even if they stick to traditional way of doing things. I am not into banking nor am I planning to enter that industry but I am aware that banking is playing a pivotal role in any country's economic progress. Maybe the banking industry is afraid of its own ghost...it does not want to expose itself to the light generated by the blockchain and lose control of something they are not showing to the public.

[DooMAD]

I think it's possibly a bit naive to say banks are "unsure".  The banks are fully aware of the reasons why they aren't pursuing this technology.  The main reason being, they don't actually stand to benefit much at all.  There are effectively two options for banks:

• Option 1 is the fake "blockchain technology" the mainstream media keep talking about, which is still a private walled-garden where the company maintaining the "blockchain" (read: database) is in total control.  The customers won't actually see any difference in practice, so it would basically amount to a monetary investment in developing a great big pile of 'nothing new' if they went down this route.  It's still traditional banking but with a slightly different way of storing the data.  Who cares?

• Option 2 is a true, decentralised blockchain, where users have control over their funds.  But if you have a profitable business model where your customers are effectively reliant on your services, why would you risk drawing attention to a technology that puts regular people in control of their money?  Real blockchains remove the need for middlemen.  That's a threat to their profitability.  So it's a no-brainer as to why they won't pursue that.

You can certainly try to fudge a mix of the two (and I'm sure loads of companies are looking at that exact thing as I type this now), but unless they've got an absolute goddamn genius in their midst, I don't see them pulling it off without making some serious compromises that would significantly limit the appeal to customers.

[hatshepsut93]

Is Banking Culture Slowing Down Blockchain Adoption?
https://bitcoingarden.org/is-banking-culture-slowing-down-blockchain-adoption/

Unless you’ve been living under a rock, you’ll have some idea of what blockchain is, and the effect it’s having on industries on a worldwide basis.

We often hear the phrase ‘disruption’ when blockchain is mentioned, and that’s as good a way as any of describing what it does.

It ushers in change, for the better. It drags entire industries kicking and screaming into the modern era.

There’s one industry that’s stubbornly dragging its heels though.

Traditional banking.

“It’s ironic that the one industry that arguably stands to benefit above all others from this exciting new technology is the very one that seems most unsure about it,” commented CEO of ATRONOCOM, Thomas Koller.

The head of digital market assets with Credit Suisse, Emmanuel Aidoo, has previously stated that it is banking culture that has been the primary reason behind the slow adoption of blockchain technology by the financial industry....

It's 2019 and people are still hyping blockchain and trying to sell it to clueless people. It's not going to work, no one needs it because it's a very inefficient way of managing centralized databases, and even if there's a few participants in the network that  need to share data, there are better ways to do it - blockchain people are always trying to apply their "exciting new technology" to industries that they know nothing about. And when it comes to true decentralized blockchains, they're extremely hard to get right, and there are theoretical limitations on what you can do with them, and in the end users have things like full control and privacy somewhere at the bottom of their priorities.

[shamc]

Crypto will destroy the banking industry so they are not going to rush into it. Even ripple hasn't been taken up by major banks, just the smaller ones. They should start accumulating bitcoin or be left with some worthless paper

[stompix]

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I'm so happy when I read that there are users around here who are not falling for the same blockchain is better than anything, including stracciatella ice cream, and will replace everything, in the future we will even have our babies on the blockchain non-sense.

Speaking of living under a rock, in some countries at least in the EU, banks have evolved a lot in the last few years.
Zero atm fees, 1 euro a month account maintenance and app access, instant transactions for an account in the same bank, 24/7, less than one our interbank transfers in the same country, automatic payments for your bills at zero costs and much much more.

Bitcoin is money, banks are service, it's such a big difference and people tend to forget what each of them does.

You will NEVER have a credit card with the help of Bitcoin alone, you will still need a third party and even if that will be Bitpay or Coinbase or anything else they will still act like Banks and be Banks.

Crypto will destroy the banking industry

Crypto will destroy *****
Exactly the clueless thing we were talking about.

[hatshepsut93]

I'm so happy when I read that there are users around here who are not falling for the same blockchain is better than anything, including stracciatella ice cream, and will replace everything, in the future we will even have our babies on the blockchain non-sense.

Speaking of living under a rock, in some countries at least in the EU, banks have evolved a lot in the last few years.
Zero atm fees, 1 euro a month account maintenance and app access, instant transactions for an account in the same bank, 24/7, less than one our interbank transfers in the same country, automatic payments for your bills at zero costs and much much more.

Bitcoin is money, banks are service, it's such a big difference and people tend to forget what each of them does.

You will NEVER have a credit card with the help of Bitcoin alone, you will still need a third party and even if that will be Bitpay or Coinbase or anything else they will still act like Banks and be Banks.

I live in eastern Europe and it's like you are describing - there's no maintenance fees at all, transaction are instant or take a few minutes at worst, I can conveniently pay all bills in my bank's web app. My only problem is that I wouldn't trust them with all my savings, and that I don't know how would they react if I suddenly deposit a big sum, when I'll decide to cash out my bitcoins. But I might try looking into opening a bank account in some other country, to avoid putting all eggs into one basket. But this is probably not the issue for most people, so I'd say that overall banking is in a good spot in terms of user experience, which is why people have few reasons to consider crypto, and why blockchain isn't solving anything.