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The limited Australian and New Zealand banking group (ANZ) has seriously nuanced the technology of distributed registers – commonly known as the blockchain.
According to the third largest bank in Australia by market capitalization, the former financial institutions are not directly threatened by the unscrupulous transactions introduced by Bitcoin (BTC) and its creator, Satoshi Nakamoto.
Maria Bellmas, ANZ Institutional's Associate Director of Products for Trade and Supply Chain, said:
Blockchain has been the darling of the tech world for some time now and increasingly in the medium term, perhaps partly driven by scorned crypto fanatics who try to justify their obsession with the collapse of the bitcoin. Sold as a solution to all the problems of life, the blockchain offers a ton of legitimate solutions to businesses – but raises just as many questions.
According to Bellmas', one of the questions is why traditional financial institutions need blockchain technology to improve their offerings. She believes that traditional and similar banks "do not necessarily need it and make better use of old bases and existing technological solutions".
Bellmas' statements come shortly after JPMorgan Chase announced its own internal cryptocurrency, JPM Coin. International Business Machines Corporation (IBM) recently launched its block-chain-powered World Wire service, which aims to provide new financial channels to offset and settle cross-border payments almost instantaneously.
So, yes … maybe these good old databases and technological solutions are not good enough. However, this news was apparently not sent to Bellmas, who continued:
The reality is that many of the problems that blockchain projects are trying to solve have already been solved by existing technologies. In many cases, a regular database can solve the problem more reliably and at a much lower cost than the blockchain.
Bellmas failed to note which existing technologies, in particular, removed the need for a trusted third party in cross-border transactions for virtually non-existent and real-time charges.
What do you think of Bellmas statements? Do you agree that financial institutions do not need blockchain technology? Let us know your thoughts in the comments below!
Images courtesy of Shutterstock.
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