The banking industry has always tended to be conservative and extremely cautious with any kind of experimentation. This is certainly true with blockchain. But it's also true that banks realize the technology does have applicability, and cannot be ignored .
There are countless proof-of-concept projects competing for investors' money and resources. Some will stand the test of time, but others will prove to be overhyped and underwhelming when it comes to market acceptance and performance. We asked experts for their thoughts on which blockchain projects currently look most promising.
Blockchain is best suited for environments where there is shared information and distrust or a need for validation between two parties — which makes financial services providers prime candidates for its use in at least four areas.
Blockchain continues to win mindshare among fintech executives. The naysayers' position is starting to soften, and the viability of blockchain as a means to exchange information between untrusted parties has begun to receive recognition from major banks.
It's rare for a day to go by without a bank, startup or financial firm jumping on board the blockchain hype train. But before we get too excited, however, we need to understand the basics of the blockchain.
The proliferation of fintech solutions presents a remarkable opportunity for small and midsize financial institutions not only to compete on a level playing field with the big banks but also to leverage their exceedingly hard-to-compete-with strengths to win new customers.
Marijuana is now legal in several states, but financial institutions currently do not allow their credit or debit cards to be used for purchasing cannabis. Thus, kiosk manufacturers are turning towards cash management solutions and bitcoin to provide secure payments for cannabis retailers.