Banks Procrastinate in Using Cryptocurrencies
Using the Blockchain system in banking exchanges and financial interactions can be followed by many advantages. For example, transparency and clarity of operation will increase amusingly. The speed of transactions and communications will get more dramatically through new technologies.
These days that Bitcoin and its peers are spoken about very much in the world of economy and financial affairs, investments in the market of cryptocurrencies has been on the rise and many companies have been interested in employing the capacities of this market in their favor. Some believe that although investments and the actors in the market of cryptocurrencies are increasing, the growth and maturity of cryptocurrencies themselves are slow. The critics say that the volatilities in the value and price of cryptocurrencies is another reason which avoids complete confidence in them. The banks and governments have a special look at cryptocurrencies. They intend to research and investigate different aspects of cryptocurrencies. However, they don’t have any haste and hurry in using them. There is seemingly much caution on the part of banks and states in using Blockchain and cryptocurrencies.
What Are the Advantages of Using Cryptocurrencies and Blockchain in Banking?
Using the Blockchain system in banking exchanges and financial interactions can be followed by many advantages. For example, transparency and clarity of operation will increase amusingly. The speed of transactions and communications will get more dramatically through new technologies. Therefore, the fact is that cryptocurrencies and their infrastructure; i.e., Blockchain, can be a good alternative to be used in banking mechanism, but the matter that who will be the leader is a little unclear.
Although there are some activities carried out from the banks around the world in this regard, it should be accepted that using Blockchain technology and cryptocurrencies will be popular when all the banks reach a consensus in using it. Actually, when just a few banks start using this technology and new tools, they will not arrive anywhere. There is no more progress, and neither can banks, and financial institutes help growing Blockchain, and cryptocurrencies nor the opposite is true. That is, cryptocurrencies and technologies belonging to it are not able to help banks and financial institutes without becoming pervasive.
Is Caution in Applying Blockchain Reasonable?
The fact which should be taken into account in investigating the role of Blockchain in the banking is that cryptocurrencies and Blockchain have not yet reached puberty. According to many specialists, there are still many faults and unanswered questions about them. As a result, the precautions taken in the field of using them on the part of the banks, states, and financial institutes are very normal. If banks and financial institutes tempt fate, they will change into an isolated island which has spent much cost and fund in reaching a fictitious development. It is clear that receivable facilities from Blockchain and cryptocurrencies are very high, but it still needs a little time to be used pervasively and in a natural and healthy way by the banks and different industries.