New bids on the block
http://www.business-standard.com/article/opinion/new-bids-on-the-block-115121601198_1.html
Banks have a first-mover dilemma when it comes to blockchain technology. The ideas that underpin cryptocurrency bitcoin could allow banks to take an axe to their huge back offices. What's less obvious is whether to splash precious cash on investment now, or hang back.
For embattled chief executives trying to work out how to meet return-on-equity targets, blockchain could be a gift. The sector-wide savings could amount to $20 billion in annual sector costs by 2022, according to consultant Oliver Wyman's estimates.
Bitcoin solves the problem of lack of trust between anonymous counterparties by getting decentralised participants to clear each transaction between buyers and sellers. Banks can adapt this by doing the same thing, but in a private network. The result: no need for thousands of staff in each bank to check and clear the trading and lending that takes place in their customer-facing front offices.
Topic: [2015-12-16] BS: New bids on the block (Read 2190 times)
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