Banks Could Use Blockchain — the Bitcoin Technology — by 2016

Capital markets could be using the Blockchain, the technology that’s behind bitcoin, as early as next year, according a new report by a banking industry group:

Traditional financial institutions such as banks run on IT systems built decades ago and as a result are inefficient, opaque, and cumbersome. Blockchain can potentially overcome many of these legacy issues.

Blockchain works as a vast, decentralized ledger, recording transactions then marking them down in a global network to guard against corruption. That’s attractive to a banking industry that looks to process transactions more securely without a third-party intermediary, with blockchain tech someday applied to derivatives and used to settle share trading.

The adoption of blockchain across capital markets is now seen as a matter of “when, and not if,” says Shagun Bali, a New York-based research analyst for the TABB Group, a research and consulting firm focused exclusively on capital markets.

A consortium of more than 20 banks is already building a framework to implement the technology. The TABB report predicts blockchain will be tracking syndicate loans by the second quarter of 2016 at latest.

From the report’s executive summary:

Over the next 12 to 24 months, we will see early

Read more ... source: TheBitcoinNews