A lawyer I know loves to joke that words «blockchain» and «ICO» a resume on LinkedIn adds about 20% to the desired salary. The same goes for large corporations. The trouble is that, in reality, only companies in the financial sector can find the intended use of the blockchain at all conferences and meetups devoted to, for example, blockchains in the energy sector, the speakers, bashfully lowering their eyes to the floor, cite the 2014 PWC report and cite some and the same examples of how blockchain connects a small network of farms in America, thus reducing the price of electricity.
But representatives of the banking and financial sectors insert the word «blockchain» practically at all conferences, they are actively developing pilot projects, which, unfortunately, remain pilot. Sberbank has opened a blockchain research laboratory, Alfa-Bank regularly talks about the prospects for working with blockchain, especially in the context of foreign counterparties, Deutsche Bank compares the emergence of blockchain with the beginning of the Internet and even successfully tests blockchain for smart bonds, but does not launch them..
Use Cases of Blockchain Technology in Finance Industry | AFA
Panel discussion «Blockchain and the future of the banking industry», 05/22/2018
There are factors holding back the massive adoption of blockchain. First, the legal factor: cryptoassets do not have a universal status, in different states there is an opposite attitude to the new phenomenon. Secondly, technological: current protocols are slow, expensive, and not targeted at the mass user. Therefore, it is difficult and almost impossible for a business to apply blockchain technology to improve performance…
Blockchain in action
But there are projects on the market that are really worthwhile, unfortunately, mostly not Russian: for example, the Argentine bank Banco Masventas successfully conducts transfers using bitcoin instead of SWIFT, JPMorgan patented a blockchain system for making interbank payments, and in China last year 12 out of 26 local banks have implemented decentralized ledger solutions. Among them are such large banks as Bank of China, China Construction Bank and Agriculture Bank of China, China Merchants Bank..
Many large corporations in their real developments attract large and worthy professionals from the crypto and blockchain world for complex systems. R3 has partnered with nine major global banks, including Goldman Sachs, UBS and JP Morgan. The startup should simplify transfers between financial corporations using blockchain. In Russia, companies often try to act carefully and are in no hurry to tell the whole world about their plans. For example, a market source reports that many banks are actively looking for ways to trade cryptocurrencies through external exchanges: for example, Bank Leumi, Tinkoff Bank and Solaris bank are negotiating with the EXMO cryptocurrency exchange, which is considered the # 1 exchange in Eastern Europe. The intercontinental exchange network, on the sites, which focuses on 50% of the measurement systems of oil futures trading systems, attracts, among other things, well-known blockchain programmers to create an online platform for cryptocurrency trading.
Advantage of blockchain implementation
The inclusion of blockchain in the bank transfer system would reduce the cost of transactions by about 30% and would be a plus in the conditions against Russia. But despite this obvious advantage, large financial corporations are not eager to innovate. On the one hand, this is the usual conservatism and sluggishness of the giants, on the other — lack of security guarantees, government regulation and decentralization of the system. Taking into account the full legal status of cryptocurrencies in Russia and the volatility of the market, it is possible to understand large players: you should not shout loudly about cooperation with the gray zone, since no one can know what will happen with the further legalization of the market.
How blockchain is modernizing the financial services industry