Bitcoin is a virtual currency. Satoshi Nakamoto invented it in 2009. Interestingly, it’s not controlled by any central bank or government authority. This means that anyone can buy and sell bitcoins on exchanges without banks acting as middlemen. The growing fascination with this instrument has made the financial industry look into the possibilities of embracing bitcoin.
The growing interest in this currency has made the financial industry take a closer look at the possibilities of using it. While banks are already offering services to facilitate buying and selling, others use blockchain technology to make their operations more efficient.
Several major financial corporations, such as Goldman Sachs and Barclays, are interested in bitcoin. Unfortunately, though, most of their exploration has been from a theoretical standpoint – trying to figure out how to make money from it. Visit http://bulwarkcrypto.com to learn how to make real money from Bitcoin.
The post will analyze their positions regarding this new form of digital currency. Also, see how big organizations have been trying to exploit the opportunities offered by this disruptive digital currency.
1) Goldman Sachs – one of the world’s most powerful investment bank
As a leading global investment banking firm, Goldman Sachs has explored incorporating bitcoin into its client business. It started publishing a series of reports describing how bitcoin could improve the existing financial system in recent years.
As an example, the Goldman Sachs research paper said that bitcoin could greatly simplify the movement of global funds. This is because it enables direct transactions without any additional middlemen. That means lower transaction costs and fewer money transfers between different countries.
What makes this particularly interesting is that Goldman Sachs’s CEO, Lloyd Blankfein, has shown his interest in bitcoin. He has stated that even though he doesn’t fully understand it, he considers bitcoin more than just a fad.
2) American Express – the world’s largest credit card issuer
American Express has also issued a report on bitcoin. The report says that the currency’s low transaction fees could prove very useful in this regard, especially for small businesses which usually pay hefty credit card commissions.
Amex is now testing out person-to-person payments using bitcoin with its Circle service. Earlier this year, it received a special e-money license from the UK government.
3) Square – one of the world’s most innovative financial companies
Square’s mobile payment service received a bitlicense to operate as a bitcoin exchange in New York. Its CEO Jack Dorsey published the following tweet shortly after receiving this license.
Square’s interest in developing a service that uses bitcoin comes from the widespread adoption of its mobile payment platform. The company has reported an increase of more than 750% in transaction amounts year-over-year, and it is targeting small business owners who operate on low margins and large transaction volumes.
4) Barclays – world’s most innovative bank
Barclays is working on a digital wallet that would allow consumers to store their bitcoins. However, the project received some criticism from the likes of Xapo, which suggests it might not be as secure as bitcoin supporters were hoping for. As a result, a newly created company, called Yegii, has been tasked with developing the digital wallet.
Barclays is already working on a few other bitcoin projects, such as providing wallets for the Barclays Pingit app and allowing its mobile banking service customers to send bitcoins to each other.
5) Nasdaq OMX Group – a global leader in technology-based securities
In recent years, Nasdaq has been looking for ways to use blockchain technology. In December, it became the second stock exchange operator after the New York Stock Exchange to join hands with Digital Asset Holdings located in New York.
Digital Asset Holdings is a startup led by Blythe Masters, who was developing credit default swaps. Many experts believe that her experience would help build blockchain-based digital solutions for financial services and products.
6) UBS – global investment bank
UBS is trying to develop a digital currency. It recently announced that it’s going to launch a system that will allow people to transfer money between Switzerland and Singapore using blockchain technology this year. This announcement came right after it partnered with Bitcoin Suisse, located in Zurich, which provides escrow services to help facilitate the exchange of bitcoins.
It’s interesting that in 2014 UBS also tried to patent a way for securely exchanging digital currencies, but the USPO rejected its application.
Bitcoin is now one of the most exciting technologies that can be used in finance, and it seems like banks and other prominent organizations are recognizing this. This could become a reality for both consumers and merchants as more people will be seen using bitcoin to make payments and exchange money.
Last Updated on February 25, 2022 by Dave Clark