Banks and FIs that embrace Blockchain


Banks seem to be hit by blockchain. It seems that everyone is taking note. Even traditional banks, in particular, and central banks.

But would the most enthusiastic adopters be a little bit ahead of themselves?

First, some numbers and some observations, in general, and then vetted through the financial sector.

PwC writes in its "Global Blockchain Survey 2018" that the responses of 600 executives in 15 territories are enthusiastically embracing DLP (distributed ledger technology) technology. Of those surveyed, 84% of companies are involved in the DLT.

"Companies took delight in the lab," wrote PwC. "Maybe they have built proofs of concept.All people talk about blockchain and nobody wants to be left behind."

The company noted that Gartner believes that the blockchain will help generate annual corporate values ​​of $ 3 trillion in 12 years – and beyond that, up to 20% of the total global economic infrastructure.

Therefore, 25% of respondents performed a live blockchain implementation. And against this general context, however optimistic, various initiatives have bent to the banks.

Among the most recent: the World Bank announced that it has launched the first bond on a blockchain with the Commonwealth Bank of Australia – the first link must be created and transferred through seven blockchain investors, including First State Super, Northern Trust and others.

And in other new launches for Bloomberg, banks in Kenya are trying to get regulatory approval to use the DLT to increase payments and help with the credit score.

Samsung? Also in this case, the Samsung SDS unit has filed a blockchain-based certification platform for South Korean banks. The initiative is linked to the Korean Federation of Banks and, through a new platform known as BankSign, the goal is to streamline cross-interactions between mobile platforms and transactions. Reports have stated that users can use different apps, but must only occur through an app.

Some other points given

Ah, but in the middle of a breathless cover, some wrinkles emerge. Interesting data from PwC: 45% of respondents think that trust could delay implementation, and slightly more than that percentage sees regulatory problems as an obstacle to the adoption of the blockchain. Another 28 percent say the interoperability of systems is the key.

So the news of such patents, for example, Bank of America and others might seem a bit like reserving a seat at a table, but not showing up at the restaurant.

And considers the fact that Kenya – where the credit score can lead to financial inclusion – has noticed that in its declaration on the initiative, this technology must ensure that "controls are in place" linked at risk of emerging technologies. Also in this case, the same article that discusses emerging technologies also notes that banks have seen loan demand decrease – which is combined with the climate of political uncertainty, growth of bad debts and maximum limits on interest rates. The methods for obtaining loans to borrowers can change (with blockchain), but could we assume that those constraints are in place, the issues beyond the conduit are stymieing?

In other news that show reluctance to adhere even when the DLT seems a little bit? ready, sites like have noted that CLS Group – a provider of FX settlement services for companies that embrace Goldman, JPMorgan and others – "was forced to" break down "a two-year blockchain project in development due to reluctance of banks to participate "The project had almost two years of work, with half of the support banks that were arriving on board, in light of the scale and the massive business of integrating with the blockchain.

In the end, perhaps when it comes to banks and blockchain, waves and ripples make a momentous change and rarely the tides are in sight.

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