Financial Players Fail To Create Global Use Cases For Blockchain Technology

Depending on how much credit one wants to give to mainstream media when it comes to Bitcoin and blockchain, all institutions are steering away from cryptocurrency as of late. This seems a rather strange train of thought, considering no bank has ever embraced Bitcoin officially.

Banks Never Liked Bitcoin And Never Will

Very few financial institutions or platforms have ever shown a remote interest in Bitcoin or cryptocurrency in general. Nasdaq is one of those exceptions, as they allow Bitcoin-backed ETFs to be traded on their platform. However, even they are not dealing with Bitcoin directly, but that is not a dealbreaker either.

Saying how financial institutions have moved on from Bitcoin to blockchain is ludicrous, to say the last. From day one, all major financial players have been focusing on Bitcoin technology and attempted to make it their own. But that turned out much harder to realize than even they had anticipated, which is why they are now relying on blockchain providers to provide custom solutions.

Mainstream media likes to tell the world how banks and other institutions are focusing on the blockchain, simply because the Bitcoin currency only makes up one percent of its true potential. Granted, there is a certain truth to such a statement, as the blockchain can be used for so much more than just powering the Bitcoin network.

But at the same time, a lot of people forget the blockchain has only become so popular thanks to Bitcoin itself. No one ever expected the powers who control the world’s economy to embrace Bitcoin, as it is a direct competitor to their own business model. Despite not reaching mainstream adoption just yet, Bitcoin has a global appeal and is a much cheaper money transfer solution.

For all of the talk and press releases financial players issue about blockchain, there is still no large-scale solution available in the world. In fact, Bitcoin is the only practical global solution to use distributed ledger technology in the financial sector. This makes the popular cryptocurrency the only valid use case for the blockchain the real world right now. Throwing a lot of money at a technology very few people properly understand will not make it work automatically, and banks seem to be learning that lesson the hard way.

Source: India Times

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