Big banks are getting on the blockchain bandwagon

Bitcoin, and other cryptocurrencies were originally created to bypass central banks and put the power of currency in the hands of the individual. It was also created so governments and banking institutions couldn't control the flow of money, and in essence, control the funding of speech and other ideals. Just look at what happened to Wikileaks.

Well just as many libertarians were popping champagne bottles over the success of Bitcoin in 2017, it looks like their enemies, central bankers, are now getting on the blockchain train.

Via Wolf Street:

As a general rule, most bankers disparage cryptocurrencies, like Bitcoin, as anything but purely speculative instruments. But they don’t disparage blockchain, the technology that underpins cryptocurrencies. On the contrary. They’re pouring money into developing their own “digital currencies,” as they call them. Just don’t call them “cryptocurrencies.” 

UBS, BNY Mellon, Deutsche Bank, Santander, the market operator ICAP, and the startup Clearmatics formed an alliance in 2016 to explore the use of digital currency between financial institutions and central banks, using blockchain. 

The ultimate goal of the project is to create a digital currency known as Utility Settlement Coin (USC), which will facilitate payment and settlement for institutional financial markets. As the FT reported in October, commercial banks are growing tired of waiting for central bankers to take the lead in fending off the challenge that standalone cryptocurrencies such as bitcoin could pose to their control of monetary policy, and are pressing on with their own pet projects.

Does this mean the end of Bitcoin? Probably not. In fact, this to me appears as the natural evolution of the blockchain technology in general. When you look at what the value of the underlining technology that Bitcoin has given the world, the idea that big banks and other countries adopting it in some form or another makes a lot of sense.

In fact, RT just reported the other day that Israel is looking to replace cash with their own digital-shekel.

For several months the Bank of Israel has been considering issuing a state-sponsored virtual currency, reports the Jerusalem Post. The digital shekel will be identical in value to the traditional shekel. 

According to an unnamed Israeli finance official, the digital shekel will record every transaction by mobile phone. It will allow the Israeli government to reduce the amount of cash in circulation to fight tax evasion and money laundering. The so-called black economy in Israel accounts for 22 percent of the country’s GDP, statistics showed. 

The digital shekel will be exactly like cash, but instead of coins in a wallet, there will be codes in a cellphone. Transactions with the cryptocurrency will be made immediately, unlike with a bank transfer or check, which takes a few days to clear.

This, my friends, is the future of money. This is also why Bitcoin and other digital currencies are so valuable right now. The solutions they provide to the money/banking industry are so vastly innovative and revolutionary. In ten years, every aspect of your monetary transactions will be using blockchain technology in some manner or another.

What do you think about this? Let us know in the comments!