The banks are already working on the adoption of the Blockchain technology. But there still exist huge skepticism on the parts of the centralized banking. However, this is decreasing given the interest shown by the banking establishment in the adoption of the Blockchain tech.
The turn in the opinion comes from a very crucial factor. The banking sector is mired in its own problem such as fraud. The blockchain adoption in the banking industry is viewed by many as a way to counter and eventually eliminate the fraud. This is the reason behind the positive noise from some banking behemoths.
ING Groups chief executive officer Ralph Hammers embraced the Blockchain technology and its adoption in an interview with CNBC. Ralph Hammers was attending the Money 2020 fintech conference in Amsterdam, Netherland.
He said that the banks are looking very much into the Blockchain because of its huge potential. Hammers further mused that if the top five or six global banking institutions get determined and agreed on the fact of standardization. They will be able to force the Blockchain technology on the global banking structures.
He thinks that the time frame to adopt it in already in operation. The completion of the adoption will become visible in six to seven years. The CEO of the Spanish Bank called BBVA has also agreed with the conclusion of Mr. Hammers. He said that it was absolutely possible that the roll out of the Blockchain technology can be seen within the five to six years’ timeframe.
Blockchain permits the simultaneous access to an open ledger which can be always updated and can’t be changed. Thus the cheating which is so universal throughout the banking in form of faking of information, transactions and documents is almost impossible. It also helps to reduce the cumbersome bureaucratic setups mired with human errors.