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> They use very expensive record keeping and clearinghouse arrangements (often involving quite a lot of physical paper) that in theory could be cheaper to do wi
by robzyb 10y ago
> They use very expensive record keeping and clearinghouse arrangements (often involving quite a lot of physical paper) that in theory could be cheaper to do with a distributed ledger.
Do you have some quantifiable facts or sources to back this up?
If I'm going to repeat it I want to be certain of it.
- pzone 10y agoHere is a report by Santander with a rough estimate of $15-20 billion in savings per year by switching from conventional records to distributed ledgers. Scroll to the end of the pdf. http://santanderinnoventures.com/fintech2/ http://santanderinnoventures.com/fintech2/
- dogma1138 10y agoIf blockchains can reduce the non-fractional funds that banks have to fully reserve and keep at other various banks to facilitate and settle transfers by even a few % the savings might be even higher, especially once you actually start getting ROI on that money that you can invest now. That's not even taking into account the ransom banks pay for correspondent / agency banking and for SWIFT and the likes. As well as the cost of liability of invalid/bad transfers, and banks oddly enough still "lose" money all the time, some of it is later recovered but virtually every time banks do account consolidation the books don't add up.
- ethanbond 10y agoWell as banks switch over to this we can certainly expect to see our transaction and transfer fees fall...