Can a blockchain exist without a digital currency or token?
Yes, it can exist within a private permissioned blockchain which will work in a business to business environment.
However, considering that there has been a widespread adoption of public blockchains to the value of around USD 22 billion at the time of writing, enterprises acting alone in private blockchains may miss out on the opportunity and value that the public and community can bring to the entire ecosystem.
Banks are required to maintain a secure banking infrastructure which is a core attribute to their value proposition in the finance industry. Most banks for this reason have adopted to test private permissioned blockchains in a secluded and secured environment. Although this appears to be the perfect answer to maintain trust, privacy and security within a controlled environment, it may not be the best route.
Imagine a situation where banks work in silos on development of private blockchains and mass adopted of public blockchains grows in parallel. In this situation although the banking infrastructure will transition to blockchains in a stable environment, the potential loss of value creation for banks will be significant because banks will not be able to tap into the value held by public blockchains.
Banks are also at risk to become redundant if public digital currencies are not embraced early on in the digital currency revolution. It is a proven fact that startups and smaller players are more agile, innovative and disruptive in comparison to large enterprises. In order to maintain relevance, large enterprises such as banks are required to either partner or develop.The ideal situation for enterprises and banks is to achieve a balance between private blockchain development and tapping into value of public blockchains. BlockPay stands as an ideal partner for banks to move forward in the revolution towards digital currencies.
While banks will be able to test private permissioned blockchains in a secure environment, partnering with BlockPay will open a door to public blockchains and tapping into value held in these blockchains. Banks will be able to utilize their backbone infrastructure to facilitate transactions and conversion between digital currencies and local currency while opening doors to generation of a new revenue stream. This balance also proves as a benefit to the end customer who will have an additional new method to spend digital currencies.
In the past as banks embraced credit cards, the industry moved to a digital way of transacting. The next organic step in this journey is to open doors and embracing acceptance of public digital currencies.
The future lies in being agile, open and integrating with public blockchain assets!
Authored By: Adnan Javed (BlockPay country manager of Australia and New Zealand)
Want to know more how Digital Currencies could fill the space between Cash and Banks?
Read the article written by our CEO Chistoph Hering!
For more information on BlockPay visit our website or for any inquiries send Chris or Rodrigo an e-mail at christoph@BlockPay.ch, rodrigo@BlockPay.ch
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