It has been an interesting week for Deutsche Bank. After criticizing the lack of cryptocurrency regulation, the institution sang the praises of blockchain technology. According to insiders, the potential for this technology is huge. In fact, it may even reshape the financial sector as we know it today. It is evident banks see Bitcoin technology as an ally, yet continue to fear the payment protocols running on top of it.
Financial institutions all over the world have high hopes for blockchain. So far no one knows if this will yield are satisfying results Although the technology has potential, there are very few working banking products running on top of it. A private ledger and a blockchain are two very different things. Deutsche Bank remains quite keen on this technology. They even went as far as calling it one of the most innovative developments in recent years.
Deutsche Bank Continues to Praise Blockchain
The disruptive potential of blockchain should never be taken lightly. This technology can solve a lot of problems and drawbacks of legacy systems in the banking sector. No changes will occur overnight, though, as it requires a lot of development and research to build viable products. So far, no bank has even come close to doing this on a large scale. Deutsche Bank has no viable product accessible to the public either, which is only normal.
More specifically, Deutsche Bank provided the world with a DLT-ready deadline. They expect the first full implementations to come to market in the next four and a half years. By 2027, around 10% of the world’s GDP could be regulated by the blockchain. The choice of wording is pretty interesting, as blockchain can’t regulate anything. It facilitates processing, but that is all it can do. Very few financial institutions have an adequate understanding of what a blockchain does, it seems.
How all of this will play out, remains to be determined at this point. Deutsche Bank is, like most other banks, exploring new opportunities in this industry. What their area of focus is exactly, remains a big mystery for the time being. It is good to see reports like these come to market. Sadly, it also shows the bias banks have toward cryptocurrencies. An unfortunate turn of events, but that situation will not change anytime soon.
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