Having in mind that the period without any constructive action has lasted too long, there is a strong decision of bitcoin enthusiasts to overtake the force and to encourage a new version of supplement to the blockcahin world, which competes the very first version and proposes an irreversible adjustment of the rules of the software that governs the bitcoin, in order to boost the control of the network and that it deals more transactions.
For the achievable incorporation of additional protocols, the enthusiasts will be focused on bitcoin combination in conjunction with fiduciary currencies. Bitcoin in practice never ceases to evoke a real interest. The technology on which this currency was built is thus becoming a key factor in the investment strategy of large banks. Savings could be as much as 12 billion dollars per year by 2025 through the contour of certain functions. Banks and financial markets are increasingly interested in this technology.
In this environment, at the same time as the national currencies will be put into competition, which will inevitably lead to the abandonment of many of them, different conceptions of the means of settlement and of new disciplines of monetary creation may be proposed to the judgment In user actions, from which will emerge the most satisfactory solutions.
The current debate between currencies and goods, virtual currencies and state currencies will be decided by the users themselves. All the same, it is likely that this process will leave no chance for inflation currencies, and will put in difficulty those that will remain in discretionary hands.
During 2015 thirteen international financial institutions, including Bank of America, Morgan Stanley, Citi, Commerzbank and Société Générale, joined an undertaking to accommodate and use this blockchain practical application that could overturn their business. The plan of implementation is supposed to be realized by 2024 and in these conditions, the blockchain appeared as a possible recourse to banking institutions whose authority was decreasing.
This type of plan was initiated because of the great benefits of public blockchains like bitcoins is that there is no obstacle to entry where anyone can create a service that works on the blockchain platform. It is difficult for organizations in the financial sector to disregard the subject since blockchain technology in theory allows carrying out all types of transactions for the price that is two to three times lower that the current transaction costs of banks are right now. It is based on a network without a central control body, therefore without the connected infrastructure and administrative costs.
In peculiar, anyone, with a large quantity of assurance, can establish a bank in bitcoin that accepts deposits from customers and issues credits in bitcoins. It is in this sense that the bitcoin can disrupt the bank on credit activity by breaking down this barrier to entry. Decidedly, the studies on the blockchain applied to finance do not end up making this technology the new target.
According to the study published by Accenture there are reasons for optimism in banks that plan to implement the elements of blockchain platform in their further transactions. It is estimated that this movement could save up to 12 billion dollars each year thanks to the application in particular of this technology to back-office function.
This article is part of the academic publication Dividing by Zero by Ana Nives Radovic, Global Knowledge 2018