Banks should seek to leverage blockchain technologies as part of a bid to defend their business models from disruption, Deutsche Bank Research suggested in a recent post online.
Entitled “Blockchain – attack is probably the best form of defence”, the post discusses bitcoin and blockchain and its implications for major banks broadly, calling the technology “one of the first truly disruptive ideas from the FinTech sector”.
Author Thomas Dapp goes on to discuss his view that the true power behind bitcoin and the blockchain lies in its application of peer-to-peer (P2P) technology to the financial sector, calling this a potential “paradigm shift” that could render business divisions of major banks redundant.
“Financial services and products that can be offered virtually in real time around the globe in future while at the same time reducing costs could catapult the traditional banks back to top spot in the race to devise financial innovations.”
Dapp indicates that financial entities including stock exchanges, credit card firms and clearing houses are all trying to leverage blockchain technology to assess whether it is a threat or potential benefit to their operations.
Deutsche Bank Research is the macroeconomic analysis division of