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Bitcoin blockchain technology may improve banking - EBA report

Thursday 14 May 2015 10:49 CET | News

Blockchain technology has the potential to reduce costs, improve product offerings and increase speed for banks, a recent report reveals.

According to Cryptotechnologies, a major IT innovation and catalyst for change paper released by the Euro Banking Association (EBA), cooperation, adoption and their two respective sub-drivers (communication and regulation) will be decisive factors in the future of the technology. The level of cooperation between payment service providers (PSPs) and the crypto technology community will determine the future relationship between banks and cryptocurrency companies.

EBAs report also speaks of two-fold benefits for PSPs and crypto businesses. If regulation is favourable, PSPs may benefit from entering into partnerships with the crypto technology community, as they would be able to get a first-hand idea of long-term developments and would be better positioned to take advantage of the latter when the technology reaches the desired level of maturity.

According to Vincent Brennan, cryptotechnologies are a key subject for further study for transaction banking and payment professionals, especially against the background of evolving financial infrastructures.

The paper suggests that the banking and payment industries should attempt to reach conversion and cost advantages of currencies and reductions in auditing and governance expenditures from asset-centric as well as radical innovation from application stack technologies.

The blockchain has also captured the attention of companies from outside the banking space. US insurance giant USSA is investigating how to incorporate the blockchain into its existing infrastructure.


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Keywords: Bitcoin, online payments, digital payments, cryptocurrencies, blockchain, banking
Categories: DeFi & Crypto & Web3
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Countries: World
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DeFi & Crypto & Web3






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