Some of the globe’s most influential and powerful traders/investors and CEOs have long rinsed or ignored Bitcoin. For instance, the American titan investor guru Warren Buffett has claimed that cryptocurrency is nothing more than an asset with no real value. Even so, these same critics can see quite a bit of value in the technology behind blockchain.
A recent report from the Financial Times showed that the Deutsche Bank had confirmed it was to be joining the Interbank Information Network (IIN) through the Bitcoin-skeptic banking massive, JP Morgan. Deutsche Bank is one of the original high-profile financial institutions that has teamed up with the IIN, which previously consisted of mainly smaller banks and some clients of JP Morgan. As the head of payments at JP Morgan, Takis Georgakopoulos states:
“Having Deutsche join — and hopefully Deutsche will be the first of several other large banks — is going to help us drive towards ubiquity and ubiquity is a pre-requisite for the success of the network.”
So by utilising the power of blockchain, this 60-bank network, will allow those involved to transfer transaction information between bodies. According to the report, the theory of this is to give member entities cheaper and further payments in a time-efficient manner by making the vital information easy to access in order to process. According to JP Morgan payments head, the IIN provides solutions that would previously have taken up to “16 days” to resolve just “hours”.
So as institutions like Deutsche Bank and JP Morgan seem to be putting their focus on a more centralised blockchain network, there are some public banks that are making use of public blockchains. As reported by Ethereum World News, “most notable of these is Santander, the giant Spanish bank that is the 16th largest financial institution on Earth.”
Last week, Santander actually announced that it had settled a $20 million bond via ERC-20 tokens, which shows custodied cash on the public iteration of the Ethereum blockchains.
It will be interesting to see how this plays out. For more news on this and other crypto updates, keep it with CryptoDaily!