In a previous article I discussed the rise of bitcoin and the legitimization of Block Chain which is the entity behind bitcoin. The various benefits of bitcoin and other forms of currency that are purely based on the internet were also discussed and will be reiterated here for the purpose of clarity.
Online currency can be extremely useful to the world economy for a variety of reasons. First and foremost, it allows business to be conducted entirely over the internet without any unnecessary hurdles. This means that when a price is quoted on the internet in bitcoin or any other online currency, the same price will be shown regardless of where prospective buyers are in the world.
A prospective buyer from India would be looking at the same price as a prospective buyer from Norway which levels the playing field significantly. It also saves buyers and sellers from the hassle of having to deal with fluctuating exchange rates and currency exchange fees while conducting transactions using online currency.
Recently, three more banks have joined in on the initiative to legitimize online currency and make it easier for banks to use it by connecting it to objects with real monetary value.
Three More Banks Join in on Blockchain Initiative Totaling 25 Banks
Block chain, the public distributed ledger and the technology powering bitcoin now has three more backers, or bankers, with Italy’s UniCredit, Japan’s Mizuho Bank and Sweden’s Nordea joining the likes of Citi, Barclays, JPMorgan, Royal Bank of Scotland and HSBC, among others who now add up to a total of 25 banks.
The fact that three more banks are signing up to either legitimize bitcoin or provide some kind of financially viable and legitimate form of online currency bodes well for the world of business. There are numerous benefits to banks adopting online currencies.
The main benefit here is that financial transactions can be conducted much faster if online currency is used. While using real currency, or at the very least digital analogues or representations of real currency, bank transfers and transactions conducted through banks take an hour to perform at the very least if the amount is very large.
However, while using bitcoin enormous transactions and transfers can be conducted within seconds, increasing efficiency tens of thousands of times over. Any group with such a huge advantage would have tipped the scales and severely imbalanced the world of banking, so it was inevitable that other banks would get in on it if for no other reason than to remain competitive in the market.
I believe that it is only a matter of time that other banks get in on this. There is just too much profit at stake for them not to.