PORT VILA, VANUATU / ACCESSWIRE / May 17, 2018 / Financial services organizations, which contribute an estimated 20% of the total GDP in developed countries, serve billions of customers on a daily basis, yet heavily rely on paper-based methods to fulfil multiple tasks. Blockchain technology - a decentralized, transparent and cryptographically secure peer-to-peer digital ledger that simplifies the exchange of data and assets while removing third-party intermediaries, minimizing fraud and maximizing efficiency - offers both individuals and businesses a platform to share a single system of record to significantly reduce transaction costs, complexity and time, and eliminate record keeping in physical form. Emporio Trading, an internationally recognized Forex brokerage firm, explores the potential benefits of blockchain for the financial services industry.
As the popularity of cryptocurrencies continues to grow, so does the banking sector's interest in blockchain and what it has to offer, particularly in the transactions niche. Currently banks transact by creating agreements where, for instance, one bank agrees to purchase a specific amount of stock for a given cash price. Being cumbersome and slow, the settlement - the period of time needed for the whole transaction process to complete - can take up to several days, with the added risk of one party altering or rearranging agreement terms, ultimately leading to $65-$80 billion annual losses as highlighted in a report by Oliver Wyman, a leading global management consulting firm. Due to their decentralized and highly secured nature, blockchain technologies can potentially reduce, and even eliminate settlement times, resulting in prompt and immutable processing of both simple and complex transactions. Moreover, blockchain-based projects can be used to accelerate global currency exchange rate speeds, allowing to replace traditional, back-office intermediaries that exist between buyers and sellers.
As noted by Emporio Trading, a prime example of the latter is the Utility Settlement Coin (UTC) specifically designed to simplify the use of blockchain for traditional banks by utilizing it as an efficient means to process transactions. The project is supported by some of the world's largest banks including CIBC, Credit Suisse, HSBC and Barclays. Also, UTC addresses the issue of currency backing by being backed by cash at a central bank, safeguarding against default and credit risk, and allowing banks to safely participate in the digital currency ecosystem. Another project, IBM's Hyperledger Fabric, is focused on streamlining international payments through blockchain where all involved parties are interconnected in every specific transaction, and some of its largest supporters include Deutsche Bank, Societe Generale, Natixis and Rabobank. The project is designed to be highly scalable, allowing multiple entrants to seamlessly integrate into the existing financial supply chain, which, together with the immutability of the technology, offers unprecedented amounts of transparency.
Emporio Trading is an internationally recognized Forex brokerage company based in the Republic of Vanuatu, authorized to trade in financial and commodity based derivative instruments and other securities. The company provides trading services to customers all over the world, with a prime focus on Europe, Asia and Latin America.
EmporioTrading.com - Worldwide Forex Market Leader: http://emporiotradingnews.com
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SOURCE: EmporioTrading.com
