Banks are investing in the technology

Amongst the banks researching blockchain technology, Citibank is investigating the possibility of issuing their own so-called Citicoin. Furthermore, the bank has made recommendations to the British government to issue Great British Pounds on a blockchain infrastructure to enable very fast and highly efficient transfers between financial institutions as well as inexpensive retail payments.

The investment bank USB is currently establishing a developmental environment for blockchain services in London, and Barclays has engaged in an agreement with a Swedish blockchain company. They are supported by a Goldman Sachs report predicting the blockchain technology will provide the world an annual saving of 200 billion dollars in transaction fees alone. Goldman Sachs also participated in a 50 million dollar investment round in the blockchain company Circle.

Spain’s second largest bank BVBA can be found amongst the most active in the space. First by joining a 75 million dollar investment round in the blockchain company Coinbase with the New York Stock Exchange, amongst others. Subsequently BVBA released a video guiding consumers to create a blockchain account and acquiring their first digital currency units.

Naturally Deutsche Bank is also engaged; in a reply to the European Securities and Markets Authority, the bank states it is investigating the usability of blockchain technology within enforcement of financial derivative contracts as well as established mathematically guaranteed “Know Your Customer” and “Anti Money-Laundering” registries.

BNP Paribas, the largest bank in France, writes in their internal magazine that applying blockchain technology to securities trading will render entire sectors redundant and that the blockchain technology may be “considered an invention equalling the steam- or combustion engine”.