Do Banks Even Want to Go Blockchain?

While blockchain can improve the effectiveness of cross-border payments and cut the costs by eliminating the middleman, it hasn’t yet proven itself as a tool ready for industrial-scale use. What’s more important is that some of the banks might not be happy to give up those juicy margin fees. During the past month, blockchain’s effectiveness and maturity were questioned by players as big as the Spanish bank BBVA, the Bank of Canada, the Russian Central Bank, and the Central Bank of the Netherlands. The Bank of England started testing its Real Time Gross Settlement (RTGS) service to conduct the transfer of funds between banks in “real time” and on a “gross basis” with plans to put it on a blockchain, but then changed its decision after trials, citing the technology’s immaturity.

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