Bitcoin has become the mainstream will have a significant impact on the traditional financial ecosystem

Bitcoin has become the mainstream will have a significant impact on the traditional financial ecosystem

A securities subsidiary of the Bank of Spain’s Bank of Santander group forecast, if bitcoin get more widely used, so this encryption currency will have a significant impact on the traditional financial ecosystem.

Earlier this week, the company released a report in a meeting, the meeting participants included researchers from Santander, Santander securities investment bank, Brazil bitcoin brokerage firm MercadoBitcoin and local investors. Despite the relatively short (only 10 pages), however, the report is given, if the use of bitcoin has become more mainstream, then the bank card issuers, the acquisition of risk mechanism, exchange and banks in the future may assume (or opportunity).

According to the report, the possibility of credit card issuers and the acquisition of risk bigger institutions.

Researcher Enrique? Navarro (HenriqueNavarro) and Bruno (BrunoMendonca) pointed out that in Mendoza?:

“Simply said, we believe that the future is low (or less) cost and fees for bitcoin transactions throughout the business model for credit card and debit card companies at risk. Acquiring company, such as Cielo (network MDR and POS as the source of income) and the issuing bank (in exchange for fee income), the threat to the maximum.”

Specifically, the report confirmed the transaction time-consuming, operation cost and related fees, these factors will enable issuers and acquiring company at a disadvantage.

The report also said:

“As more and more businesses and suppliers to accept bitcoins as payment risk, these institutions face will increase.”

Influence of Brand Company and bank credit card

The report discusses the potential impact on banks, various blockchain application test and recent experimental work and major financial institutions have a broad overview.

Special emphasis on recent UBS, Bank of New York Mellon, the blockchain settlement system created by Deutsche Bank and Bank of Santander.

The authors of the report said:

“We believe that this concept has redefined the blockchain banking currency trading potential, to eliminate difficulties in the bank to the center of the computer network, time consuming and high cost of transaction. IT, the transaction cost, the huge bank’s back office operations, capital demand, in our opinion, these will be changed.”

In addition, according to the report, some of the main bank card brand will occupy technological advantage.

The authors wrote, like Visa and MasterCard such companies can use the blockchain technique to obtain the “benefits”, reduce the transaction, IT and the backstage operation cost.

The report also highlights the Visa recently launched a test of interbank payment items, said this kind of system can threaten the global interbank payment network SWIFT dominance.

The report said:

“In our view, this is a challenge to SWIFT it.”

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