The new era of banking
The impact of blockchain & the disruption of the financial system
With blockchain, comes big & exciting changes. Let’s start with:
- a much more animated & dynamic decade, where we will witness the reinvention of money and assets in general
- a new level of internet, that has a powerful democratizing effect on information
- a new way of doing transactions, in which one party sends money directly to their counterpart without any intermediary and the transparency of the process as well as the re-traceability of all transactions ensures that ownership is secure
The impact of blockchain
1. Verifiable, robust and cryptographically secured identities will ensure KYC/ AML compliance
With blockchain it is possible for individuals to own/re-gain sovereignty over their identity and they are able to decide how much of their information is shared in any given economic trans- action or interaction.
2. Transfer of value increments without an intermediary will dramatically reduce cost and increase speed of payments
Bitcoin as a crypto currency is an alternative way for individuals to move large amounts of money for relatively low fees over a medium time frame (a few minutes up to a few hours). However, it does not work for a large number of transactions within a small time frame. For example, a purchase at the POS of a shop will not be feasible if the transaction takes several minutes.
But for all other transaction which do not have this minimal time requirement, and especially for all transaction across borders, Bitcoin is a good transport medium.
3. The speed and efficiency of Blockchain creates opportunities to participate in wealth creation
The logic behind a security token is that it can be programmed into a smart contract and into a crypto asset, radically reducing the complexity of how financial markets work.
By making it easier for everyone to own securities, it also broaden inclusion, for instance by the creation of a new asset class, the inclusion of new customer segments and by facilitating trade.