Here are some of the advantages that blockchain-powered international transactions might bring, despite the drawbacks in terms of employment:
- Faster international transactions. Under the current system, international wire transfers can take up to 5 business days.
- More direct transfers between banks. Under the current system, banks that don’t have direct connections between them, must use an intermediary bank to complete an international transaction.
- Cheaper transactions.
Investors should be looking closely to understand the effects that a wider blockchain adoption might have on the banking industry and their investments. On one hand, the implementation of the technology promises to cut costs, therefore increasing profit margins. On the other hand, it could have a disruptive effect that can result in higher unemployment stemming from the sector. This could have a drag on an already fragile economy.
There is also the issue of hardcore crypto-anarchists and hackers who deem blockchain technology as a way to circumvent banks as a whole. The adoption of blockchain technology might make banks more susceptible to cyber-attacks from these fringe elements. This means that investors should be looking at banks that have positioned themselves at the forefront of blockchain technology, while at the same time increasing their expenditure on the prevention of cyber-crime.
