Ever since the new technologies evolved, it has been predicted that blockchain in banking will bring ground-breaking transformations. The finance sector is the one which has received the most positive feedback along with desired objectives in recent years. It has played a significant role in the payment and transaction settlement operations in the banking systems. The recent one has come through multi-national bank HSBC that has settled forex trades worth $250 billion via blockchain powered platform.
The HSBC bank is said to have made over 150,000 payments so far now with such a huge amount of settlement. However, the bank officials did not reveal the forex trade figures settled by the traditional process. But they did mention that the ones settle though blockchain represents only a small proportion as compared to the overall trade. However, it is still considered as a massive amount at this scale for the blockchain industry.
Several other market-leading banks have also made an entry in this vertical with the intention of simplifying the process and reducing the cost of the process which deals with settlements and payments. From the advent, it became clear that the blockchain in banking can be deployed to leverage its potential in best way. Therefore, some of them have already moved on from testing to implementation of this future technology in their large-scale projects. HSBC’s head of forex and commodities, Richard Bibbey stated that their bank is focusing on the usage of blockchain in facilitating forex flow for their multinational clients as mentioned by CIO.
Blockchain Makes A Special Niche In European Banks
The reason behind is that many countries of Europe have aligned themselves with crypto trade and blockchain industry in a legal way with complete acceptance. According to Entrepreneur, there is this large group of European banks who have come together for testing of blockchain interbank reconciliations trial last year. There are some real prestigious pilot projects going which will help in apt positioning of blockchain in banking within this continent.[The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views and/or the official policy of the website. ]