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Santander signals that digital currency will become mainstream

Monday 12 September 2016 10:03 CET | News

Banco Santander has published a report discussing the risks card issuers, acquirers, exchanges, and banks might face when the use of digital currency will become more mainstream.

The report, called Brazil: Banks & Financial Services: To Bitcoin Or Not To Bitcoin?, stems from a meeting involving Santander researchers, Santander Investment Securities, Brazilian Bitcoin brokerage Mercado Bitcoin and local investors. According to the report, currently most at risk are the card issuers and acquirers as transaction times, operational costs and associated fees and taxes constitutes factors that would put them at a disadvantage.

Moreover, the report examines the potential impact on banks, and offers a broad overview of recent work by major financial institutions to test and experiment with various blockchain applications. Some examples include the recent blockchain settlement systems created by UBS, BNY Mellon, Deutsche Bank and Santander.

Not only banks, but major card brands, too, can take advantage of the technology, according to the report. Companies like Visa and MasterCard, among others might benefit from using blockchain to reduce transaction, IT and back-office costs.


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Keywords: Banco Santander, digital currency, cryptocurrency, Bitcoin, Brazil, Latin America, innovation, blockchain, card issuers, acquirers, exchanges
Categories: DeFi & Crypto & Web3
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Countries: World
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DeFi & Crypto & Web3