It is a public secret that most traditional financial institutions are warming up to Bitcoin technology by now. However, none of them want to directly deal with Bitcoin itself. Thus, they are forced to create their own blockchain-based tools and applications. Belgian IT company Cegeka is developing Bitcoin-inspired payment systems for traditional banks.
At this point, it remains unclear whether or not Bitcoin – as a payment method – will ever gain critical mass adoption in the near future*. Financial experts will tell you how Bitcoin is not money, and it should be avoided at all costs. But one thing no one can deny is the sheer potential of Bitcoin’s underlying blockchain technology.
Regardless of how you look at it, banks don’t care about Bitcoin as a currency, and they probably never will. Or not in a positive manner, that is. As long as there is no unified regulatory ruling on how Bitcoin should be treated by financial institutions and governments, there will always be doubts regarding digital currency’s legitimacy.
That being said, blockchain technology is something traditional financial institutions have been eyeing carefully in recent years. Its public ledger, which is a decentralized database with no central point of failure, is of great interest to those institutions. Additionally, the blockchain’s biggest upside is the ease-of-use with which real-time transactions are broadcast and submitted to this database.
Rather than just using the blockchain for payments – which will always remain a core business model – financial institutions see quite a lot of potential for this technology. Exchanging digital documents, smart contracts between two parties and even a decentralized stock exchange are just a few of the possibilities.
Belgian IT-Firm Cegeka Develops Blockchain Applications
Even in the small country of Belgium, demand for Bitcoin-based applications is growing. IT-firm Cegeka is catering towards this market, which mostly comprises of financial institutions who do not want to miss out on the “blockchain revolution”. In fact, most major European banks have shown great interest in blockchain applications, and they are willing to outsource its development.
Not too many details are known at this point, other than the fact a handful of Cegeka Romania team members will be focusing on both Ripple and Bitcoin to get a grasp of the technology involved. No official details have been released regarding the nature of those applications in development, but more information will be released in the next few months.
“The blockchain is one of the most disruptive technologies we have seen in the past few decades. Its technology has major ramifications, which are not necessarily confined to the financial sector. ABN Amro is currently experimenting with digital loans, a project built on top of the Bitcoin blockchain. Should Cegeka succeed in creating powerful applications, they can position themselves as one of the market leaders in Europe.” – Marco Witteveen, Director of Cegeka Netherlands, told DigitalMoneyTimes.
Source: Tijd (Dutch)
Images courtesy of Cegeka and Shutterstock