Many banks are technologically still in the Stone Age. Santander now wants to take the plunge into the digital modernity. Bitcoin is to help her. Banks seem to have slept through the digital revolution really. Especially in the “struggle for digital wallet” run private providers such as Paypal traditional banks from the rank. That’s fatal, because how important the Internet has become for the international payments, seen not least in the increasing popularity of digital currencies. Bitcoin as a known representative of the crypto money now belongs officially to the regulated currencies, making it finally arrived in the mainstream.
Despite this, the banks are making so far a wide berth around Bitcoin. But that could change now. Last year already saw the Munich Fidor Bank stir when she wanted to start the first Bitcoin Bank together with the Bitcoin portal Kraken. According to a report of “Business Insider” Santander wants to enter and do business with Bitcoin. But not about the currency itself. No, Santander does not care about the Bitcoin money, but rather for the Bitcoin software.
While block chain, so to speak, is the state of the art of digital payments, banking systems are lagging this digital age still behind. Too old, too slow, too expensive. Because of this, Santander wants to make the leap from the Stone Age to the Modern Age. According to “Business Insider” had the bankers 20 to 25 areas identified in which the block chain technology could be applied, including international payments, trade finance, syndicated loans and credit management. According to a report, in which also participated Santander, block chain could reduce the cost per year of banking infrastructure by up to 20 billion US dollars. The Bitcoin software is thus quite lucrative for the financial institutions.
And it might be more lucrative, the more banks join and be networked via block chain. Santander compares it to a wireless network in which they have the only cell phone. As long as they are the only ones, there is no one they can call. The more join, the more profitable is the business.