Strategic Challenges Of Public Blockchain In The Banking Industry
Forex services are offers conversion of one fiat currency into fiat another currency. The service ranges from a kiosk exchange to high value payments between business corporations. Investment services institutions offer services to increase the monetary value of assets they manage. Furthermore, their services ranges from buying stocks to making a large mergers and acquisition decision.
In the last two decades, the internet revolution has opened information to public but the credibility of publically available information …show more content…
The strategic move of the group of banks was to formulate partnership/consortiums of banks which participate in the technological battle. These financial services pioneers especially from banking industry have already formulated a consortium of banks to lead developing blockchain technology for the use cases for in the banking industry. The technological group consolidation have fin-tech companies (new era players) are on one side and big banks consortiums on other end to serve future financial services market.
There is also conceptual differences of use cases of developing in a public Blockchain (which is available to all) and private blockchain. A completely open, public Blockchain is like Bitcoin blockchain means that it gives opportunity for participants to be anonymous. The R3 consortium of banks negates a publicly updatable blockchain database with the possibility of being anonymous in financial transactions.
4.1 Why Blockchain in Financial …show more content…
Promises that aren’t worth the paper they’re written on if there is no trust”(Guiso, Sapienza, & Zingales, 2008). Trust in financial services industry is a key element in their business and almost all relations are built on concept of trust. The financial services providers are basically intermediary institution that offers trust and security. The matter of trust arises because economic transactions involve risk which directly proportional to transaction completion time (Humphrey and Schmitz, 1998). It is evident that the very natures of financial contracts require a particularly high level of trust. Earlier all functional relationship were built on trust factor, currently the digital technology offerings and advertisement have built the brand effect, which humans tend to trust even without building a real-time