Lately we read everywhere about banks that will use blockchain technology and that this will help them save a lot of money. TRUE! Blockchain technology and smart contracts is way much more efficient and secure than traditional systems so the use of this technology will indeed save a lot of money for banks.
Settlements of payments and contracts and all kind of transactions will be faster, more efficient and more secure. Billions will be saved per year for these banks.
Other than that though nothing else will change in the way banks do business. These blockchains, these new ledgers I doubt that they will be public and auditable to and by everyone. It will be just a much better way for banks to do their business. These blockchains will not increase people's confidence in the new banking system because they will be private blockachains that miss the most important factor when it comes to increase confidence. Decentralization is everything!!
In order to improve the financial system banks should take a step back from the speculative trading and do what they are supposed to do in the first place anyway.That is to hold securely people's hard earned money, reward them with some interest and invest only a small portion of that money to productive loans that increase investment and consumption. In order for people to trust banks again that they are doing their job correctly, they should use public blockchains that people can see at any time their position and how much collateral they hold at any time.
A blockchain like this exist today. It is called bitshares and it is Steem's big brother. Dan Larimer aka @dantheman brought to the world this amazing system that every value, every market pegged token, that exists in this system is backed by x2-3 collateral bts value. I am not saying it is the perfect blockchain and that banks across the world should use it (although that would be awesome) but it is a start for the right direction...
Banks should create blockchains that can prove to the public their collateralized value at anytime. Otherwise nothing will change..
I think bitshares is pretty underrated in the space right now...With its speedy transactions it could change the game of digital currency transactions. Also the development is picking up a lot of momentum it seems. Check out my bitshares article and please follow back!!
https://steemit.com/bitshares/@jacobcards/bitshares-the-sleeping-giant
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Thoughtful post - following you now.
With the development of the blockchain, I can't see how we will need banks, at least as they exist today as intermediaries to facilitate transactions. There will be other ways to borrow, so perhaps someday banking will be a lost profession.
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Interesting way of thinking on the banks and using blockcain ... lets see what they are going to do ... transparent or not
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