Topic: [2015-06-17]Here's how one of the world's banks wants to use bitcoin technology (Read 730 times)

This might be a future competition for bitcoin's instant worldwide payment feature

If banks use their specially designed blockchain to do the international settlement, then real time payment will be achieved. They will make sure their own blockchain will be powered by their special algorithm and their own mining farms around the world, so basically no confirmation is needed for any transaction

Each customer will pay with their domestic currency, they don't even see the bank's blockchain running in the background. The problem is, banks have to handle the conversion to/from their own crypto currency on both ends, that will bring lots of comlexity, makes it even more complex than today's sytem, where they only need to convert currency once

Another hard part is to find enough banking partners in each region. In sweden, swish mobile payment is a real time payment network, it works because all 7 major swedish banks are connected to this system. Even some of the small swedish banks are not connected to the system, you can imagine, it will be very difficult to find enough international banking partners for using blockchain to do transaction (And that will cause lots of bank employee to lose their job, thus face harsh resistance)

Even banks successfully did this after many years, they just built a transaction network, that still won't provide anti-inflation promise of bitcoin, so it won't threaten bitcoin's position as long term saving medium

Once they've integrated blockchain tech, banks will put a lot of money into marketing themselves as the best option compared to the open source solutions being developed already. This is wear there may be the need for a huge awareness campaign to let the public know that this tech is specifically there so that we dont need banks to manage our funds.

The tide of opinion is slowly turning. It's a subtle curve of rehabilitation. Once 'blockchain' is more widely acknowledged just maybe the dirty word associated with it will sneak in along with it.

This sounds like Nick Szabo's  "High Powered Money" idea from his blog.

Banks are going to get on board eventually especially when they realize they can save money, I just hope people realize they too can save money by not using banks at all 

Banks seem to now be at the nubie stage of understanding. They are just starting to get it, but think that a an alt-coin will be the solution to get your money into their hands.

Spoiler alert: We don't want your stupid bank coins. My transactions are now denominated in BTC, the payment processors can join in or try finding another customer. It's our turn to be a dick about money.   

Here's how one of the world's biggest banks wants to use bitcoin technology

Banks mostly aren't interested in bitcoin, but they are interested in the software that runs the digital currency — the blockchain.

...

Belinky told BI: "We’re very excited about distributed ledgers and blockchain technology. They really have the potential to disrupt many of the basic processes we have underlying our transactional products."

"What we see as the foundation use case, which is international payments, we don’t really need a coalition of 50 banks to make it work. We have ten major geographies. Just us connecting our ten major geographies will allow 100 million customers to make instant payments worldwide. If we partner with two or three banks similar to us we’ve got pretty much global coverage."

But Faura adds: "This thing will only be interesting if many banks take part and collaborate. We are talking and experimenting with several banks."

http://uk.businessinsider.com/santander-has-20-25-use-cases-for-bitcoins-blockchain-technology-everyday-banking-2015-6?r=US




good luck with your intranet - i hope the other banks dont cheat...