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Blockchain technology

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What will be the impact of blockchain technology on the banking system?

Blockchain Technology
Banking
Finance
Imane B
4 months ago

4 answers

1

I got my start in the world of blockchain/crypto working at the Stellar Development Foundation, whose goal is to connect the unbanked. Blockchain represents enormous potential to transform the banking system. There is an uphill battle to get there, especially in developed countries, but blockchain is posed to make banking tx quicker, reduce the current friction in the system, improve the speed of KYC/AML (tons of redundancies in this process) by layering KYC/AML applications on top of a blockchain protocol, etc. Currently there are MTOs and FIs in developing countries using blockchain for crossborder remittences, a $4570b year industry. One analogy I typically use is sending money should be as easy as sending email. Whereas in email there is no friction if you are sending say from a GMAIL to Hotmail, banking and money transfers should be the same.

At Stellar, 100's of thousands of transactions could happen for less than a penny. Considering that transfer fees average at something like 6% and up, this is a game changer.

Brian Gale
4 months ago
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I believe large transactions will be faster and secure globally. Perhaps less money laundering activities globally. Alsom banks might have to charge lower fees for money transfers.

Ali Qudrat
4 months ago
Banks rarely want to lower their fees. - Bo 4 months ago
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Maybe more safer cross-border transactions.

Bo Chen
4 months ago
Let su hope. Hacking industry will also invest more though. - Hassan 4 months ago
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Blockchain technology is revolutionizing the banking sector. It is expected that banks will have safer transactions and consumers will also enjoy safe, faster, and cheaper transfer of money.

Hassan Qudrat-Ullah
4 months ago
Let us hope so. At the beginning of the internet, it was thought that access and affordability of education will improve. Instead, affordability has skyrocketed. - Imane 4 months ago
Imane BOUKHATEM, and Hassan Qudrat-Ullah, Blockchain is more for businesses where is internet is for all levels. This distinction makes a big difference. - Bo 4 months ago

Have some input?