Banks operate as intermediaries in the global economy by managing and coordinating the financial system using internal records. This system imposes to trust banks and their mostly obsolete infrastructures. The blockchain is free of intermediaries and replaces them with a
system without borders, which does not involve a relationship of trust, totally transparent, and easily accessible. It allows cheaper and faster transactions, facilitates access to capital, offers a better security of data, honors agreements that does not require a relationship of trust, fluidize the contractualization.
New financial structures will soon be able to interact in different ways thanks to this new technology.
Main benefits of the blockchain for the banking and financial sectors are:
Security (because of the implementation of the network).
Transparency (standardization of the exchange process).
Trust (transparent registration).
Confidentiality of data.
High performance, high acceptance of transactions.
The banking and financial industry is one of the sectors that will most benefit of blockchain innovations.
There are many application cases we can imagine, from real-time transactions to conversion of assets and loans into tokens but also from more fluent international exchanges to stronger digital agreements.
Token: virtual items attached to an economic value which can be exchanged for money.
A new banking and financial architecture, based on transparency, elimination of frontiers and need of trust appears to be a very effective way to prepare a more open and interconnected economy.