Blockchain’s Impact on Treasury Technology

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Blockchain's Impact

So how will blockchain impact treasury? What will its applicability be to the treasury or will there be applicability to it.

1. First of all, know there won’t be an impact in terms of cryptocurrencies as we currently see those Bitcoin and other cryptocurrencies that are used on an individual basis that is anonymous. They are interesting but they definitely have a dead end. They won’t expand being anonymous. There is too much use by criminal organizations and with all the focus on deterring fraud crime rings and terrorism anonymity will have to stop. It won’t continue probably on the individual side but it certainly won’t be used by corporations because of the central banks and governing those payments so it won’t expand being anonymous.

2. Now if you use those same technologies for payments but it can be managed and tracked by the central banks then there is a possibility for but is there currently configured? They won’t continue they won’t be used for corporations for cryptocurrencies as is currently configured.

3. Now the yes side of blockchain is this idea of a distributed Ledger where you don’t have to go through either a central bank or one location but there can be multiple locations to validate ownership or information.

4. There is definitely a case for that and there is a case for distributed Ledger technology or the use of blockchain so first it is easy to say the banks are heavily invested in this they have invested over a billion dollars in different types of blockchain companies.

5. They are also having pilot programs and even some and production that are running them. So the different applications that are being tested including some that are in production mean that everyone is learning about this and there are certainly some opportunities to reduce inefficiency that is out there some examples might be items related to trade settlement activities and even payments that are run or managed through Central Bank so there is no anonymity there is definitely attribution to it.

6. Yet there is a separate way of managing that activity so will blockchain be used in the treasury not for cryptocurrencies as currently configured but yes the use of distributor Ledger technology will continue to grow banks are investing heavily and there are some good use cases for this.

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