The major bank of SBS sees some of the largest possible applications for blockchain tech as potentially good but has second thoughts on the value of cryptocurrencies.
SBS Bank of New Zealand a widely used commercial banks, is watching blockchain technology and cryptocurrency to see the intrinsic value of the pair.
As of now, the consensus commonly spoke of is on its real-life applications, according to executive Shaun Drylie of SBS. The view of the two mediums, (blockchain tech & cryptocurrency) were made at an annual meeting, earlier this week, according to a report that was released on Southland Times – a popular news outlet in New Zealand. Cryptocurrency and blockchain were two of the main topics discussed at the meeting.
The potential uses of blockchain tech in the banking sphere is to help improve the rate and speed at which transactions can be made, not to mention the lowering of the costs for transfers. Another possible use would be in the security sector of the major financial institutions. Lastly, they can be used to offer various financial services to those people without banks.
Unsurprising to most, Drylie is highly skeptical on cryptocurrencies. The entire banking system is still unsure on safety when using cryptos, they’re extremely volatile which also ads to the skepticism, they also reported. From the viewpoint of a bank, keeping an eye on them, they have a potential future but it’s hard to make a solid decision on which one is the safest. Banks have to think extremely long-term, taking regulations and other factors into consideration, which makes choosing a token difficult.
In reality, the New Zealand bank have an almost aggressive attitude with cryptocurrencies, being hostile towards the unstable nature of the virtual coins. Only in recent months has the governor of the Reserve Bank of New Zealand, Geoff Bascand publicly stated that a cryptocurrency issued by a bank wouldn’t be completely unstable financially because o the already existing issues with scalability and verification processes. Earlier this year some of the cryptocurrency exchanges in New Zealand had some trouble with their commercial banking accounts.
But, the excitement on blockchain technology in New Zealand Banks is much larger. Just this last May, ANZ – a New Zealand financial institution – teamed with IBM to test the blockchain waters, in attempt to see what solutions would work for the insurance market.