BBVA, a multinational Spanish banking group has published another report on the block chain technology entitled “Blockchain Technology: The Ultimate Disruption in the Financial System,” to explicate the advantages and unique applications of the block chain technology.
Specifically, BBVA highlighted the block chain’s capability of storing identities and unforgeable data and its ability to settle secure transactions instantly.
“In the financial industry, institutions were slow to recognize the potential of blockchain technology; however, dozens of large banks have now invested significant amounts of money in this technology. The attention is likely the result of how disruptive this technology is to the financial sector, particularly if it allows massive simplification of banking processes and significantly reduces costs,” explained Nathaniel Karp of BBVA.
Today, billions of dollars are spent annually to maintain laborsome centralized transaction settlement / banking systems. Most large transactions are approved manually by bank employees, which often stalls millions of payments worldwide for 2 – 3 days, resulting a global straggle of unsettled transactions and bank wired payments.
While the irreversible nature of bitcoin transactions is recognized as a “disadvantage” for credit-card focused banks and financial