Bitcoin might change how the banking landscape looks like, but it most likely won’t substitute banks, we read on CNBC:
(…) Brock Pierce, the chairman of the Bitcoin Foundation, said that while the adoption of blockchain will hit parts of a bank, it will ultimately create opportunity.
"There are certain aspects of their business that are going to be negatively impacted, but there are also going to be other business units that are going to be positively impacted and new business units that get created that might not even exist today," Pierce told CNBC in an interview on Monday.
"I think banks are going to take a while to integrate this … it's going to take them years of testing before they start to commercialize aspects of the technology … it's more likely to have an impact in other industries in the short term which are less-regulated and where the stakes are lower," Pierce told CNBC.
Pierce also explained that there would be "dozens of different versions of blockchains" deployed for different use cases.
Some of the points made here are actually pretty relevant for Bitcoin, in our opinion. Bitcoin is the first system to provide the opportunity to transact without third-party verification. Numerous other digital currencies have mushroomed since, however, Bitcoin has been able to remain the most popular one. Now, the technology underlying Bitcoin is being applied in the banking sector. The arrival of Bitcoin was first associated with the idea that it could somehow supersede the banking system. Right now, it seems that the development in the Bitcoin space is going in a different direction.
The Blockchain – the technology powering Bitcoin – is being researched and modified by startups, and implemented in specific networks within banks or exchanges. The work focuses on using the ledger system to facilitate various banking operations. It’s still very early to really know how this is going to turn out but at the moment it seems that there might be considerable impact in the area of operations, for instance in the processing of securities by the back office.
So, rather than diminishing the role of the banks, Bitcoin is more likely to reshape the banking landscape and change how financial institutions operate. This shift might create a lot of opportunity for companies willing to step in and work with the banks to develop ledger systems.
For now, let’s focus on the charts.