The international banking sector has been exploring the possibility of using blockchain technology for fund transfer and other operations. Many banks are already invested in researching the potential use of bitcoin technology for their respective institutions and the possible implications of such technology.
Recently it was announced that eight international banks including Royal Bank of Scotland, Commonwealth Bank of Australia, JP Morgan, Barclays, Credit Suisse among others are jointly working on a blockchain project along with R3 CEV, a New York based global fintech innovations and solutions firm. They are reported to be working on creating a blockchain based financial network that supports fund transfers between the partner banks and their branches directly. This new project appears to complement the existing cryptocurrency technology based projects being undertaken by the banks.
Now, the coalition of banks working on creating an international blockchain based financial network have been applauded for their effort by one section of the bitcoin community. While there are those who are skeptical about the whole thing as well. However, the blockchain for banking project (as I would prefer to call it) has received a major boost afar few more banks decided to join the group.
Thirteen banking giants, in their own order have expressed their interest to join the existing coalition of banks working on blockchain technology. These thirteen banks include Bank of America, BNY Mellon, Mitsubishi UFJ Financial Group, Citibank, Commerzbank, Deutsche Bank, HSBC, Morgan Stanley, National Australia Bank, Royal Bank of Canada, SEB, Societe Generale and Toronto -Dominion Bank. With the inclusion of these banks the total number of partners in blockchain technology research for banking operations has reached 22. All the who’s who in banking industry from Wall Street are now part of this ambitious project.
By adopting bitcoin/blockchain technology, banks will also be able to save a lot of money, which is otherwise used for processing transactions and satisfying various compliance requirements