The first decentralized digital currency, Bitcoin has spawned many imitators.  The most important aspect of Bitcoin to many bankers is that it is a fully convertible currency that is not controlled by any governing entity.   Since its introduction in 2008 Bitcoin has grown to a total valuation of more than $14,000,000,000.   Bitcoin is used for both legal and illegal transactions.   Due to its built-in anonymity Bitcoin is often thought of as a convenient vehicle for money laundering or procuring illegal products or services. 

               While most financial institutions are still formulating policies for Bitcoin, many are now embracing the fundamental technology underneath Bitcoin, Blockchain.    Blockchain is a distributed database technology that enables Bitcoin’s decentralized behavior and much of Bitcoin’s value.   Blockchain brings value to capital markets, remittances, trade finance, KYC (Know Your Customer) and many other use cases in financial services.   It is very likely to revolutionize the way banks work together.

Tom Burns