More banks are embracing cryptocurrency and blockchain


ANOTHER DAY, ANOTHER FINANCIAL INSTITUTION
ANNOUNCING PLANS TO TEST OUT ITS OWN CRYPTOCURRENCY. WELLS FARGO IS THE LATEST BANK WITH PLANS
TO PILOT CRYPTOCURRENCY TO EASE CROSS-BORDER PAYMENTS. WELLS FARGO JOINS J-P MORGAN CHASE AS A TRADITIONAL
FINANCIAL SERVICES COMPANY TO TEST OUT BLOCKCHAIN TECHNOLOGY. AND, LIKE J-P MORGAN CHASE, WELLS
FARGO’S CRYPTOCURRENCY WILL BE BACKED BY FIAT CURRENCY. IN OTHER WORDS, ITS VALUE IS
TIED TO THE VALUE OF A STABLE CURRENCY, LIKE THE U-S DOLLAR. AND AS THE FOURTH LARGEST
BANK IN THE WORLD, WELLS FARGO HAS A LOT TO GAIN BY IMPLEMENTING BLOCKCHAIN TECHNOLOGY
FOR CROSS-BORDER PAYMENTS. SO WELLS FARGO HAS ALREADY TESTED ITS CRYPTOCURRENCY
SYSTEM BETWEEN U.S. AND CANADIAN ACCOUNTS USING U.S. DOLLARS. AND OTHER CURRENCIES WILL
BE CONSIDERED IN THE FUTURE. IN THE BEGINNING, WELLS FARGO’S CRYPTOCURRENCY WILL BE AVAILABLE
TO ITS CORPORATE CUSTOMERS. THE WHOLE PILOT PROGRAM IS EXPECTED TO ROLL OUT NEXT YEAR,
IN 2020. BUT, WHY BLOCKCHAIN MONEY TRANSFERS ARE SO
APPEALING. AND DOES IT SEEM LIKE THE FINANCIAL SERVICES INDUSTRY GRAVITATING TO IT MORE AND
MORE? TRADITIONAL WAYS OF TRANSFERRING MONEY, LIKE WIRING, CAN TAKE DAYS TO COMPLETE AND
RESULT IN ADDED COSTS AND FEES. BY CONTRAST, BLOCKCHAIN PAYMENT NETWORKS HAVE THE ABILITY
TO COMPLETE PAYMENTS ALMOST INSTANTANEOUSLY AND SECURELY. CRYPTOCURRENCY CAN HAVE A BIT
OF A BAD RAP IN THE GENERAL PUBLIC. BUT, LIKE I’VE SAID BEFORE, CRYPTOCURRENCY ISN’T
ALL DARK WEB AND CRAZY RATES OF INFLATION OR DEFLATION. WHEN USED STRATEGICALLY–AND
WHEN BACKED BY FIAT CURRENCY–IT CAN MAKE PAYMENTS FASTER, CHEAPER AND A MOSTLY FRICTIONLESS
EXPERIENCE. THIS IS A PRACTICAL USE FOR BLOCKCHAIN IN THE ENTERPRISE, AND IT’LL ALL BECOME
NORMAL QUICKER THAN YOU MAY THINK. BY 2022, IT’S EXPECTED THAT 25 PERCENT OF
ALL CROSS BORDER PAYMENTS INVOLVING U.S. BANKS WILL USE STABLECOINS TRANSFERRED VIA BLOCKCHAIN.
AND THAT’S WHY THIS IS BIG. ANOTHER GIANT FINANCIAL INSTITUTION GETTING ON BOARD WITH
BLOCKCHAIN MEANS BLOCKCHAIN–AND CRYPTOCURRENCY–BECOMING STATUS QUO. AND WHILE THIS IS JUST AVAILABLE
TO CORPORATIONS IN THE BEGINNING, FACEBOOK’S LIBRA CRYPTOCURRENCY–WHICH IS SET TO LAUNCH
NEXT YEAR AS WELL–COULD BRING CRYPTO TO THE MASSES. YOU KNOW, ASSUMING COUNTRIES ALLOW
ITS CITIZENS TO USE IT. SO, WHAT DO YOU THINK? IS THE WORLD READY
FOR CRYPTOCURRENCY TO BECOME THE NORM? LET ME KNOW IN THE COMMENTS, AND THANKS FOR WATCHING.
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