Though Euro Banking Association has most often wary about Bitcoin and even issued warning to the member countries against the use of the digital currencies, the latest research paper from the organization shows that it is swayed by the blockchain, the underlying technology of Bitcoin. The report says that the EBA considers cryptotechnologies, a major IT innovation.
The banking association also says that cryptotechnologies can also work as catalyst for change. In the report it talks about cryptotechnologies and says that over the past five years, these have surfaced as major IT innovation with the potential to improve the architecture of systems and processes in a number of digital transaction-based industries.
The report says:
At the core of this invention is the concept of ‘distributed consensus ledgers.’ These ledgers make it possible to jointly create, evolve and keep track of one repository of transactions or other successive events over a shared network (documenting, for instance, the ownership of value) without maintenance or administration by a central authority. Advances in cryptography, internet performance and computing power are the key enablers of this innovation.
The explanatory report on blockchain technology explains everything from it being an innovative financial solution to the detailed study of the opportunities and challenges. The EBA says that technology does not exist nor does it develop in a vacuum; rather, it is subject to institutional norms and dynamics.
The banking association believes that in history few things happen without precedent and by drawing on these insights it has been possible to create potential cryptoscenarios for the transaction banking and payments industry by identifying drivers that were also relevant to voice over internet protocol (VoIP) around the year 2005.
The major driver according to the EBA is cooperation between organizations in the transaction banking and payments industry themselves and between these organizations and the cryptocommunity as adoption of cryptotechnologies.
Cryptotechnologies Still at a Nascent Area of Innovation
The comprehensive report on Cryptotechnologies from the EBA claims that the tech is still a nascent area of innovation. However, it also concludes that together with emerging and future technical developments in this area, the impact of cryptotechnologies on the transaction and payments industry will very much depend on the future cooperation models.
It further says that the impact of cryptotechnologies will also depend on the adoption of cryptotechnology-fuelled applications by existing or new market players.
To contact the reporter of this story: Deepak Tiwari at firstname.lastname@example.org