Blockchain technology in banking has set in a revolution by replacing the old conventional operational system with the more efficient and secure platform. There are several modifications already done within the banking sector with this novel emerging technology. Many top leading banks across the world have begun using the new technology which is slowly replacing the existing systems. Blockchain has improvised the cross-border remittance and payment methods drastically that has made a major impact on the business of money transfer agencies and related third parties that performs this task.
Blockchain technology at first was the operational platform for the cryptocurrency trade, precisely the technology that underlies Bitcoin. However, it was developed to such an extent that it could easily perform cross-border remittance with much higher precision, transparency and speed. But, some of the market leaders in the field of money transfer are not yet satisfied with its performance, hence they have kept away from this.
One such firm is London-based start-up TransferWise which has been a popular name in the European market for transferring money to various geographical regions across the world. TransferWise co-founder and chairman Taavet Hinrikus stated that the idea looks wonderful on paper but in reality, it is far away from successful execution. He further added that they have been monitoring various blockchain technologies available but they have not yet found anything substantial that can be used within their platform, as mentioned by Fortune. Blockchain technology in banking has made its niche but it is not the case with money transfer firms.
Cross-Border Payments In Banking
According to Financial Times, the banking sector has been experimenting with blockchain technology from quite a few years. There has been an overhype surrounding the distributed ledger technology but some of the projects led by top-notch companies have given wonderful results in proving that blockchain has the possibility to bring in a major change in cross-border remittance.
Blockchain technology in banking is still evolving but it will certainly take years to replace the entire existing system and acceptance by all the banks across the globe.[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. ]