Numerous debates are taking place across forums; the talking point is Blockchain being the harbinger of the new age technology revolution. And as it happens with any new and emerging technology there have been discussions about its usefulness, advantages, disadvantages and the way of its implementation.
While some agree that Blockchain can be implemented in most of the industries, some argue otherwise stating that it should be used only for payments and validation during its early years. As is seen throughout modern history, any new industry that came and flourished was backed by a solid infrastructure. This has been the area of concern for the Blockchain enthusiasts; it is yet to get a solid infrastructural support.
One of the primary beneficiaries of Blockchain technology is digital banking and financial services. They need a solid infrastructure and know how to capitalize on the potential of Blockchain. It seems very enticing to use this technology for quick payment process and transaction cost reduction. But banks need to build infrastructure to create and run a truly global network based on this transformative technology.
It has been found out that banks are interested and looking into Blockchain to speed up their processes. According to a report by consulting firm Accenture, 9 out of 10 banks agreed that they are exploring the use of Blockchain in payments and may use it if results are promising. It has a real-time transfer capacity; this has made it a favorite of banks. The most prevalent use case of Blockchain technology is emerging out to be intra-bank cross-border transfers & cross-border remittances.
Blockchain technology itself works—there’s no debate about that. The biggest key to turn Blockchain’s potential into reality would be a collaborative effort among banks to create the network necessary to support global payments. This network if deviced into existence would act as the requisite infrastructure. Now it’s time for the banks to look at the bigger picture. And work together with Non-Banking Financial Institutions (NBFCs) to help define the backbone that can underpin a universally accepted, ubiquitous global payment system that can transform how banks traditionally execute transactions.