Blockchain, the cutting-edge technology behind virtual currencies like bitcoin, has the potential to play a disruptive role in the global finance sector, experts say, as banking behemoths seek to connect with its opportunities.
While banks could reduce their costs, the gains could eventually shift to consumers who could benefit from quicker and cheaper services. Much like it underpins trading in bitcoin and other cryptocurrencies, blockchain or so-called distributed ledger technology could also support trading of other assets, thus posing a risk to banks who earn hefty fees helping their clients trade currencies and other assets.
Key areas of financial services where blockchain could have an impact are the settlement and clearing of transactions.