Blockchain solutions are becoming increasingly adopted across many industries today. Nonetheless, this is not too surprising considering the transformational benefits that blockchain solutions can offer. Increased speed, efficiency, decentralization, and enhanced security rank among the most glowing selling points of blockchain technology. Surely, the banking industry is positioned to enjoy a plethora of advantages by adopting this revolutionary tech.
According to a report from the International Data Corporation, global spending on blockchain solutions has vehemently risen to $1.5B USD for this year alone. This doubles the figure from 2017. In light of this, among the major spenders is the financial sector. This industry has singularly spent a head-spinning $552M USD on blockchain solutions this year alone.
The devoted enchantment of the banking industry with such advancements is not unexpected. Blockchain solutions have found judicious use in cross-border payments, settlements, and asset tracking, all the way to regulatory compliance. In the proceeding years, the United States and Europe are expected to be the largest spenders. Nevertheless, Asia, as well as the Pacific, will be big spenders as well.
As a matter of fact, many of the big banks today are carrying out decentralized asset technology tests. They have also begun to hungrily scour for avenues to integrate the new technology into their business processes. An analysis carried out by Accenture, a consulting company that focuses on strategic planning, concluded that the global banking industry would save over $20B USD just from implementing blockchain.
In addition to this, financial institutions are voraciously adopting blockchain as their life-saving medication. Penetrating such transactions is no easier than breaking into a super-fortress. Such a formidable level of security makes it an attractive and viable option for the storage and transmission of data, as well as a transparent network infrastructure.
Such beauty of this wonderful digital technology comes from flexibility it brings through decentralization, in addition to the reduced cost of operation. Therefore, you see why an industry as regulated and conservative as the banking industry is giving blockchain technology a red carpet reception.
The big guys in the banking industry are showing great visionary anticipation in exploring the extremes of the blockchain, salivating what is to come. Correspondingly, the likes of JPMorgan Chase have such high hopes for its practical application. Its specially designated Qurom division exhaustively studies the technology and its adoption possibilities. Correspondingly, Goldman Sachs is reluctant to lag behind as it has invested in the Circle cryptocurrency project. Many leaders of Wall Street have become fully aware of its almost endless potential.
Do you think banks are adopting blockchain enough? Do you think there is more the industry can do in its use of cryptocurrency? Let us know in the comment section below.
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