Bitcoin, Crypto currency, Blockchain

Quantum leap in the financial sector – banks will increase Blockchain-Budgets to $ 1.7 billion

002088a4cad29995f74240430dffc4f8 - Quantum leap in the financial sector – banks will increase Blockchain-Budgets to $ 1.7 billion

The year 2017 marks a quantum leap in the Blockchain-commitment of banks and financial institutions. These have doubled their Blockchain Budgets in the past year, worldwide, more than, reveals a study by the consulting firm Greenwich Associates. All $ 1.7 billion to be invested in research and development of technology. In order for a Trend, Particularly banks, are threatened by the Blockchain according to the forecasts, most significantly, continued use of those potentials.

The Blockchain will replace banks – hardly a sentence resounds so loudly by the opinions of experts, popular scientific literature and opinion articles on the Blockchain. The Argument behind this is: as soon As automated transaction rules tab of the payment flows and safeguard, is the middle man, the Bank, unnecessary. The worldwide Boom to crypto-currencies and the rapid rise-Bank financial companies like PayPal seem to confirm this for the old financial world gloomy forecast.

While commercial and Central banks of these upheavals threatened to see, put many on the same horse. More and more financial institutions focus their research and development in the area of Blockchain.

In 2017, however, marked a quantum leap In the past year, banks around the world to their efforts in the Blockchain-research more than doubled, this is a recent study by the consulting firm Greenwich Associates shows.

For this purpose, the Greenwich respondents in 200 Interviews with senior executives of banks and financial companies. The adviser requested, among other things, Budgets, number of employees, as well as assessments of possible fields of application and challenges for Distributed Ledger technologies (DLT) in the banking sector.

The result: In the past year, all 1.7 billion of US are gone-dollars in the development of DTLs. This represents a Budget increase of 67 percent. In addition, the study shows that every tenth Bank of this Blockchain-the Budget is over ten million US dollars.

The main drive of the banks: cost savings

But it’s not enough. While banks have doubled in the past year, with an average of 18 employees, your Blockchain departments, the study continues to be that every sixth financial institution can celebrate its first successes in the Blockchain Implementation. So 14 percent of the banks indicate, to use first technology solutions.

A Central drive of the financial institutions were cost savings in the transaction, such as transfer fees, or the processing time. Here, more and more private companies run the traditional money houses. They offer about Transfers in real time, with lower and lower fees. The often rusted digital system of banks is lagging behind here.

In spite of the fact that according to Reports, a large part of the Blockchain projects that sweeps the world in a timely manner, the sail is not to be from the Bank’s perspective, however, optimistic to change this by using the Blockchain.

“More than half of the Executives we have interviewed have told us that the application of DLTs has proven to be more difficult than anticipated. Nevertheless, it is expected that more than three-quarters of the currently developed projects in two years ‘ time“,

Richard Johnson, Vice President of Greenwich Associates and the main author of the study, to Bloomberg.

R3-consortium: working Together in the future?

Banks in times of Blockchain-boom want to let the supposed future, not idly pass you by, shows the company R3. In the consortium have closed, according to over 200 financial institutions, regulators, trade associations and technology companies. Among them are the likes of Microsoft, Barclays, BBVA, CIBC, Commerzbank, DNB or HSBC.

Your goal is to develop Blockchain-solutions for business applications and particularly the Bank’s payment transactions. Signs of progress: Last October, the consortium was able to present on the Basis of their Blockchain-platform Corda, a System for cross-border payments.

Although this month have already been reports of a possible Out of the consortium, according to, nevertheless, the Bank demonstrates initiative, what is the Greenwich study confirms in this week. The potential of the Distributed Ledger technology are particularly taken by the banks, the assessments are threatened most significantly by this, seriously.

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