How Banks Are Profiting Through Bitcoin and Blockchain Technology?


The most important aspect of bitcoin technology is the interest it’s collecting from its community to provide financial services. The biggest hub to provide such financial services are banks and insurance companies which pay attention to digital currencies. They even work on projects to provide advantages to the digital currencies underlying technologies. Many genuine people have invested in this crypto at and now making millions of profits from this digital currency.

Banks’ inventions of Bitcoin

Despite developing a new currency base every time, banks are in search of new concepts for the exchange of money with different types of assets such as stocks and bonds. And all these exchanges could be possible for several financial occurrences without paying any charge during the whole exchange process. For instance, there was a technique that was held under investigation by a person name Nasdaq who allowed their stocks in private companies which were traded through blockchain. This would permit everyone to use the public. This type of trading through the exchange process and without any transactional fee could be replaced by the trading of paper certificates which take so long time to o move around.

Role of banking applications

Therefore instead of the sale and purchase of Bitcoins, the banking applications make it possible to target different types of procedures to move funds all over the world without paying any extra charge for every exchange payment. Moreover, with the help of bitcoin-inspired technology, is of course a different place for the banks to be but a well-promising application. Before some years, when times has made a difference, bitcoin was uncertainly going up and down like a whipping boy and it was slammed by the executives of banks over a large scale. Now there is no provision to look for your favourite currency to look so far to watch the new updated digital currency popping up in such a way.

Citibank forwarded in a way

The Citibank is the furthest along. The technology used by Citibank is somehow equivalent to that of Citicoin. While this is not able to use by the public as it is still under wraps. Although the banks are already under a procedure to mine the Citicoins to test them across different labs around the globe. However, they can mine their Citicoins and observe the changes to make a goal to make sure that they are on the leading edge of the technology and they can explore more opportunities within it. However, the banks have designed three types of blockchains as part of the experiments. 

According to CoinDesk, other banks are already processing the bitcoin, and this technology is already testified by the other banks. Some of the organizations are French bank Société Générale which listed a job for the development of bitcoin in July for making an IT developer make or access the blockchain, bitcoin, and cryptocurrencies.

Citibank and bitcoin

Swiss investment bank UBS has announced that they are going to open a research lab for blockchain technology in the district of London on a larger scale just before this year. Barclay has already made a plan to trial bitcoin technology. In March, the bank agreed to start three number new innovative projects which were related to the blockchain-related to its internal accelerator programs.

As per the news channel of New York name New York Times, there are 25 no. Of experiments are internally ongoing. The Spanish bank has already posted many articles on its website. They also uploaded a video to teach the procedure of setup up bitcoin on their website. There were lots of investments already made by the bank on several bitcoin setups. They have an online startup for coinbase banking which is available to purchase on the website in the last year. French financial services are supposed to use bitcoins to reduce their expenses from the market. They invested more than 120 million dollars to explore it along with some other advanced technologies. IBM is also working on prospective blockchain technologies for the use of smart contracts.

Security Implications

In spite of executing all these projects, should IT managers take care of the security implications regarding digital currency and its concerned process? For this, a future perspective should be prepared before investing in these coins for the demonstration of these projects to watch an eye on the future. Moreover, if your firm is carrying much amount of foreign exchange, it would be an intelligent step to learn more about your business bank related and how to invest in virtual currency using blockchain technology.