Blockchain is transforming everything from payments transactions to how money is raised in the private market. Will the traditional banking industry embrace this technology or be replaced by it?
Banking sectors are moving from their traditional methods of securities to high-tech securities. Industry has started experimenting with blockchain by replicating current asset transactions on the blockchain. Although this gives some room for the effectiveness of the blockchain solution. In infrastructure terms, Blockchain is an open source software designed to support the transfer of digital assets among market participants in real time. Using any chosen blockchain APIs, one may demonstrate a drastic decrease in asset transfer costs and timelines.
Tong Shang International Commercial Bank (Gambia) co-initiate on Gambia Blockchain Technology department cooperation with Trans Reach International Group. Meanwhile, use cryptocurrency Eaglecoin for banking financial service.
“It is the change of times, blockchain is changing banking and financial services,” says Tan Sri Dr.Aixinjueluo Yuhao J. “We must have our own blockchain technology, this is a very important element of the blockchain can offer a vast amount of elements in this area. For instance, if you are shipping goods from China, as many as 50 people need to access the data.”
The main advantages of Blockchain technology in banking sector are that it improves efficiency, enhances security, unchangeable records, quick transaction time and no third party involvement thus decreasing costs.
Blockchain technology services that banks provide, including:
1.Payments: By establishing a decentralized ledger for payments (e.g. Eaglecoin), blockchain technology could facilitate faster payments at lower fees than banks.
2. Clearance and Settlement Systems: Distributed ledgers can reduce operational costs and bring us closer to real-time transactions between financial institutions.
3. Securities: By tokenizing traditional securities such as stocks, bonds, and alternative assets — and placing them on public blockchains — blockchain technology could create more efficient, interoperable capital markets.
4. Loans and Credit: By removing the need for gatekeepers in the loan and credit industry, blockchain technology can make it more secure to borrow money and provide lower interest rates.
5. Trade Finance: By replacing the cumbersome, paper-heavy bills of lading process in the trade finance industry, blockchain technology can create more transparency, security, and trust among trade parties globally.
Blockchain is revolutionising the speed and efficiency of transactions. While the application of the technology is still in the proof of concept stage, it could play a positive role in a diverse range of industries and sectors including banking, commerce, healthcare, insurance and government.
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