Saturday, June 10, 2023
19.4 C
New Jersey

Unlocking the Potential of Blockchain Technology to Transform Banking Services

Must read

Gherardo Fiorenzo
Gherardo Fiorenzo is an Italian author with a unique perspective shaped by his experiences in Italy and the US. His thought-provoking articles, short stories, and reviews explore the intersections of language, identity, and culture.

The views and opinions expressed herein are those of the author only and do not represent the views and opinions of editorial.

UBS’ decision to acquire Its competitor, Credit Suisse, has, of Of course I was shaken up the financial manufacture once again. It comes a week after the breakup of Silicon Valley Bank (SVB) and signature bank in United States, noting that financial The situation is far from improving.

this, of Of course it is also a sign that our promotion financial system long overdue

UBS will pay 3 billion Swiss francs (about $3.2 billion) for acquisition, which is about 60% less than it is worth during the market Close on Friday. And although this is not usually the case, the law passed by the Swiss government It will no longer require approval of contributors for deal to go forward.

There is no doubt that Credit Suisse has not been the most popular among investors in Recent years, large losses reported in the current financial calamity. In 2022, the bank Saw 8 billion in net losses, its largest annual loss ever. Last week, I revealedmaterial vulnerabilities” after the crash of SVB and Signature Bank.

These positions continue to be emphasized need for upgrade to financial systempreferably by introducing a transparent approach and the possibility of auditing people who They put their life savings and retirement funds into what they believe is a reliable institution.

in terms of traditional Finance, the acquisition may further boost the banking sector, with UBS and Credit Suisse being key players players in Industry. The merged entity will be larger share of the marketthat can result in price increase power And potentially reduce competition.

Isn’t it ironic howf in Banking industry is still mostly supported technology From the sixties, we have technology Ready and waiting for execution? And while there is a file technology From the sixties powerful on Of his own, he can’t provide an exhaustive answer to problem of financial system Transparency.

But the most important thing is that we have the means to improve the negative aspects mentioned of the traditional The banking sector who in the end lead to fall of Main players like SVB and Credit Suisse.

Blockchain technology It’s still a very small number of Industries though it has proven to be a great a tool in to improve future of where is the financial Industry trending.

Basically, by introducing the blockchain technology inside the traditional The banking sector we can help the public Save billions of dollars each year in fees while also reduce or even eliminate need for Trusting third parties.

Blockchain is an auditable and transparent ledger of Transactions, states, and elimination need for Shady bookkeeping practices false totals. on the blockchain, money It cannot be fabricated, multiplied or amplified. Meanwhile, solvency information He is available for public Check at any time.

Furthermore it, future progress in blockchain technologysuch as zerocognitive proofs, will allow customers to maintain the necessary level of privacy during also to provide full Auditability on scale never seen before in humans history.

However, the current financial The situation makes older generationsand who Owns already He was in Similar conditions, take back past events.

the people who Dollars held in deposits in 2008 Lied to by bankers. This time, the liars are now central bankers and bankers bank Regulators, making it even more difficult for people to trust traditional financial system againunable to restore points Lost it recently.

Meanwhile, distrust grew for blockchain industry since current The FTX disaster is not entirely fair, as the disaster has nothing to do with the underlying blockchain industry and technology. Sam Bankman-Fried and his actions were cause of the current crash. it was the one who Looting money of his clients. Ironically, this would not have happened if blockchain and decentralization were implemented in place. FTX is another example of Centralized financial system failurenot the blockchain.

technology, ie technologyObviously, it is not easy to implement. But when it comes to blockchain, established institutions hold back use It is because they are afraid of the unknown. United State regulatory The landscape, including the SEC and CFTC, is making things more difficult for Mass adoption of Blockchain and cryptocurrency. They refuse to understand that blockchain technology Will be better for both of them people And institutions.

at recent days bank Failures indicate something else. They show everyone that this shift of the system He is more urgent than ever.

About the author: Jesper Christensen is the Director of Operations of full view. Jesper holds a Ph.D in applied physics and computer science from Cornell University and previously led a large Web3 network research organization. Jasper also Co-author a book on automated market Makers: A practical guide to decentralized exchanges and cryptocurrency trading.

More articles

Latest article