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Today, banks clear transactions between themselves through the SWIFT network. By investing in distributed ledgers, a group of banks can collude to avoid settlem
by politician 9y ago
Today, banks clear transactions between themselves through the SWIFT network. By investing in distributed ledgers, a group of banks can collude to avoid settlement feees incurred by going through SWIFT.
That's the benefit to financial institutions, and the threat to SWIFT. The technology itself is nearly irrelevant. From a game theory perspective, what matters is whether their R&D is plausible enough that they can use the tech as leverage to negotiate lower fees.
Also known as cutting out the middleman.
- castellar 9y agoYes but the technology we're discussing would almost certainly need to be maintained and verified by the banks at some financial cost?
- rorykoehler 9y agoThe banks own SWIFT.
- kpil 9y agoThe idea is to spend less money than the other guys.
- runeks 9y ago> By investing in distributed ledgers, a group of banks can collude to avoid settlement feees incurred by going through SWIFT. How does a distributed ledger remove/lower settlement costs?