All great stuff, but what impact will Bitcoin have on the banking industry? The Swift Institute concludes in its report that, while the currency is still in its infancy and not ubiquitous enough to be a threat to existing monetary models, there is scope for disruption in the future.
“If the acceptance of Bitcoin or similar virtual currencies increased significantly on a global level, it could affect the behaviour of consumers and producers and as a consequence change the relevance of monetary policy,” says the report, adding that “given Bitcoin’s global decentralized nature and independence from any central bank or supranational authority, regulatory oversight may be difficult and challenging.”
It is certainly an intriguing proposition. But what is becoming increasingly apparent is not so much the value of the currency, but the value of the underlying technology - the blockchain.
“In today’s banking world, it is all about cost savings, as they are all struggling with low returns and that is why they are all locking on to the blockchain,” says Richard Lumb, head of financial services at Accenture.