France’s Biggest Bank Says Bitcoin Could Make Banks Redundant

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By Derrick Broze

In another sign that the world is taking bitcoin seriously, an analyst with French bank BNP Paribas says bitcoin’s blockchain technology could make existing companies “redundant”.

In BNP’s magazine Quintessence, analyst Johann Palychata writes that the blockchain “should be considered as an invention like the steam or combustion engine.” Palychata writes that the blockchain has the potential to change the world of finance, if not the entire world.

The blockchain is a digital ledger of all bitcoin transactions. The blockchain uses peer-to-peer, distributed technology, meaning that rather than being hosted on a single server it is spread across computers and servers around the globe.

Palychata believes that if the blockchain is applied to securities trading, or buying and selling company shares, then “existing industry players might be redundant.” He believes it might be possible for investors to trade shares directly using a blockchain, rendering stock brokers and other middle men unnecessary.

The news from BNP Paribas is only the latest indicator that Bitcoin, and cryptocurrency in general, are revolutionizing the world. Whether the blockchain will ultimately render the world’s economic middle men completely and useless remains to be seen. What is clear is that the world’s economic institutions are paying attention.

Business Insider reports:

“But the truth — as Palychata makes clear — is these banks are being forced to innovate. While its unlikely that any one of hundreds of startups currently springing up will replace Santander or Barclays, banks face death by a thousand cuts as startups attack different parts of their businesses from multiple angels. If they don’t do something soon it will start to affect the bottom line.

Palychata’s scenario of blockchain being applied to stock trading isn’t such an outlandish scenario either — US exchange operator Nasdaq is currently experimenting with the blockchain.

Still, it seems more likely that the banks will work to use the technology behind bitcoin to benefit their own operations rather than contribute towards a larger global economic revolution that could strip them of their power. Palychata himself writes that it’s more likely that stock brokerage firms will adopt the blockchain for internal use but likely not offer it to consumers.

In the end the banks will only hurt themselves by attempting to monopolize the blockchain (and other emerging P2P, open-source technologies for that matter). Every new startup and entrepreneur that enters the bitcoin market is contributing to the eventual downfall of the economic monopoly maintained by banks around the globe.

Derrick Broze is a liberty journalist, agorist and bitcoin user. He writes for Coinivore and many other publications. Follow him on Contently. Tip Derrick bitcoin to 1LVATadEVsd4X4wf9k2W1Xv2SKn5q57s1M

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