Several years back Citi tested a bank-backed cryptocurrency similar to JPMCoin. The lesson it learned? It’s easier to rely on SWIFT.
In recent years, financial institutions have begun to appreciate the perks that come with the blockchain technology. Its anonymity, speed, and security make it highly attractive to banks for use in their day-to-day transactions. Hence, the design of an in-trial platform for banks who wish to capitalize on blockchain technology.
Multinational technology behemoth, IBM, and foreign exchange services firm, CLS, announced the creation of in-trial app store, LedgerConnect, on Monday. This platform is expected to launch in a few months’ time. With LedgerConnect, banks interested in programs based on the blockchain technology can use the platform trial pad.
These financial institutions will be selecting blockchain vendors, including Baton Systems, Copp Clark, Calypso, IBM, SynSwap, and OpenRisk. Theoretically, banks have it easier when they use LegerConncet to opt-in to blockchain projects. These banks can also use the same blockchain protocol, instead of using several incompatible ones.
In a statement made by Ram Komarraju, managing director of technology at CLS, he said:
What is the point of having these people building the same infrastructure? Instead of building several new blockchain applications for the same problem, banks can then focus their energies on their own firm’s operations.
The in-app trial platform is built on the IBM Blockchain Platform and Hyperledger Fabric Technology. It will apply blockchain technology to areas such as anti-money laundering “Know Your Customer” regulations and collateral loan management.
The platform, however, is yet to receive the go-ahead from central banks and the Federal Reserve Bank of New York. Because of its unregulated nature, banks cannot enjoy the potentials that come with using the platform. At the moment, an exact launch date is yet to be given. Vice president of financial markets of IBM, Keith Bear, gives early 2019 as a tentative date. He also hopes more banks would apply before then.
Citigroup and Barclays Sign up for the LedgerConnect Blockchain
Wall Street banks have in recent times, recognized the potentials of the blockchain technology. To solve a litany of problems and improve security, these financial institutions have tested different blockchain technology platforms.
The blockchain technology, which is the underlying technology cryptocurrencies such as Bitcoin, is a secure way to send sensitive information. Its anonymous nature and speed make it very attractive for banks, which deal in personal data and security.
Nine prestigious banks, including Citigroup and Barclays, have decided to key into the LedgerConncet. Citigroup and Barclays have in the past, partnered with different startups to help build projects that address various issues. These issues range from instant transactions to compliance with onerous financial regulations.
Integrating Legacy Systems with Emerging Technologies
The moves made by these banks is commendable, but there is the problem of the old merging with the new.
Vice president of financial markets of IBM, Keith Bear, commented on the old versus new trend. He said:
The challenge is being able to work together across organizations of different speeds. On one side we have a large highly regulated industry. On the other side we have much more agile and fast-footed fintechs with limited resources. Our role is in some respects of mediating those differences in speed and resources.
Hello Mr. Dimon, how are you?
Bitcoin rocketed new record high at about $5,800 and there appears to be no stopping it right now.
Bitcoin is worth more than gold! What!? One Bitcoin is 5 times more worth than ounce of gold!
Unprecedented growth of almost 900 percent in the space of just a year, exceptionally long bull market. It would be no surprise to anyone if it hits $10,000 very soon.
At this historic moment for Bitcoin, blockchain, and global cryptocurrencies community, Bitcoin market cap exceeds $90 Billion and is rapidly reaching another milestone of $100 Billion, surpassing the market cap of Goldman Sachs as the second largest investment bank in global financial market.
Bitcoin volumes are soaring in almost every nation state, but exceptionally in Japan where Bitcoin fever is reaching boiling point, making people feel that they are missing the boat on this enormous opportunity stricken currency, feeling jealous about early adopters who made money out of it.
So the market capitalization of overall digital currencies is almost reaching $200 Billion.
Of course as predicted by many top world financial analysts, strategists, during last several months predictions are that Bitcoin will be the best performance asset, outperforming stocks, bonds, gold, luxury investments…
Bobby Lee, formerly the top executive stock strategist at J.P.Morgan published a report in early July outlining the potential for Bitcoin to rise above $20,000 and with a chance to reach $55,000 by 2022. I think Bitcoin is an undervalued asset with potential of huge institutional sponsorship coming along.
So the predictions still hold and as it seems we will soon witness, maybe during the next year, Bitcoin price will reach such an amount that in overall capitalization cap to surpass even famous commercial bank Citigroup and in mid-term also the mammoth JP Morgan bank!
On CNBC’s Fast Money, Lee emphasized that he sees the Bitcoin price reaching $25,000 by 2022, after refuting claims from bank executives such as JPMorgan CEO Jamie Dimon that Bitcoin “is a bubble.” Lee stated:
“There are only about 300,000 holders of at least $5,000 of bitcoin. And that is why, for instance, to make a fraudulent transaction on bitcoin today, it would cost almost $30 billion to create one fake bitcoin.”
Estimated overall capital market is valued about $200 Trillion in cash, stocks, bonds, gold. Cryptocurrency market just set a new record of $200 Billion, but still this is a tiny, tiny fraction of the overall capital market. It’s not hard to see a big picture of huge potentials for gaining and expanding for Cryptocurrencies, to likely increase 100 times in value.
Don’t miss out: