What will be the impact of blockchain technology on the banking system?
12 months ago
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.