Crypto Newsletter: Are ALL Banks Into Crypto?

Unlike the blockchain technology, the SWIFT service is as 45 years old interbank service that can handle nearly a half of the world’s highest value international payments and it is currently owned by more than 12.000 banks worldwide. Belgium created SWIFT service doesn’t really believe that the blockchain is ready for mainstream use and that it needs a lot of progress before large-scale applications.

Banks would drastically need to modernize their systems in order to switch to the blockchain. Because of this, not all banks are willing to spend a lot of time changing a system that obviously works great for them. During a research, it was established that more than 100.000 sub-ledgers would need to be established in order for banks to turn to blockchain and this will bring a lot of maintenance issues for the banks.

Banks are not ready to give up the great deals of income they acquire because it is a very important source of income for them. Banks also charge when making a cross-border payment and the price varies from $25 to $35. Also, many of the banks don’t believe in the capabilities of the blockchain technology. They doubt its effectiveness and security. Also, banks think that the blockchain technology is not mature yet for dealing with all the things that banks deal with and therefore cannot be used on an industrial scale. Also, many banks say that blockchain is not capable of scaling and thus won’t be able to carry out payments as necessary.

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