“A technology that has the ability to conduct and verify transactions via an immutable, time-stamped record that is replicated on servers across the globe has immense implications for the banking sector. We’re talking about a massive overhaul of the banking industry’s processes and a significant reduction in costs,” Chief Economist for BBVA Compass Nathaniel Karp has said in a report titled Blockchain Technology: The Ultimate Disruption in the Financial System.
The bank’s economists have concluded that while interest in the leading cryptocurrency Bitcoin has evened out, the underlying technology blockchain is attraction more attention and investments because of its ability to safely conduct transactions without involving a third party.
The economists also agreed that while the initial mainstream adoption will most probably be in the payments sector, the next wave of adoption might completely alter the way financial markets work.
“Given that the majority of financial assets such as bonds, equities, derivatives, and loans are already electronic it may be possible that someday the entire system is replaced by a decentralized structure.”
Nathaniel is confident that the disruption will