Back once again with my block chain obsession! Part 2 (!) on how the block chain will shape the banking environment. (Find part 1 here: https://steemit.com/blockchain/@linnie/block-chain-will-enhance-traditional-banking-block-chain-is-a-direct-threat-to-swift )

UBS, Deutsche Bank, Santander and BNY Mellon planning to launch the digital currency in 2018.

Four of the largest banks in the world are jointly creating a new digital currency. UBS, Deutsche Bank, Santander and BNY Mellon plan to launch the currency in 2018. They announced this Wednesday in The Financial Times.

The banks want to mainly use the currency because of the underlying block chain technology. The aim is to use it for automatic handling and settlement of financial transactions, which could save them billions in costs.

Tens of billions

Current applications of block chain are still very experimental and it is still going to come very uncertain whether the big promises. But if that happens, it could mean that third parties which are currently necessary for securing, recording and monitoring transactions and contracts, such as banks and notaries, would (partially) be superfluous.

The aim of the new currency of the four major banks to smoothly handle payments, which ultimately means that less staff is needed. According to a report from research firm Oliver Wyman, banks worldwide are now spending tens of billions of euros on handling payments.

Other large banks and central banks including the Dutch Central Bank(!) work on their own digital currencies and block chains. They would thus become less dependent on the block chains of digital currency bitcoin and ether, which are now widely used. Those currencies fluctuate greatly in value, therefore banks find them unsuitable.

At block chain forums sounds much skepticism about the plans of the major banks to develop their own bitcoin- and ether variants. According to many developers the power of block chain technology ís that it can make the banks redundant.

What are your thoughts?