German Banking Association: Blockchain may revolutionize the securities market

According to Coindesk on November 19, the German Banking Association (Bankenverband) recently stated that the association believes that blockchain technology may have a significant impact on the financial market.

In a newly released report, the Digital Agenda Committee of the German Banking Association responded to questions raised by members of the German Banking Association on the impact of financial technology developments on the German banking industry. The German Banking Association speculated that blockchain could have an impact on the stock market and the payment sector.

The comments came in response to a question from association members about whether large technology groups such as Amazon, Apple, Facebook and Google would use the crypto-financial system as a way to disrupt banks. (The European Court of Justice recently ruled that Bitcoin transactions will be exempt from value-added tax (VAT) in Germany)

However, the German Banking Association is not very optimistic about whether these companies will adopt Bitcoin. Given that Bitcoin currently has little use in daily life, it remains to be seen whether it will be accepted by consumers.

The organization continued:

“The financial services industry is more concerned about the blockchain technology behind Bitcoin. Blockchain technology has the potential to revolutionize the settlement system of the securities industry.”

However, the organization also warned that it is currently impossible to estimate how customers will react to the technology, and that the commercial application of blockchain technology may be an opportunity but also a risk, so its assessment is mainly "speculative."

It is reported that the German Banking Association has more than 200 German bank members, including well-known members such as Deutsche Bank and Commerzbank. Currently, both banking institutions have publicly participated in the blockchain project of industry startup R3.

Original article: http://www.coindesk.com/german-bank-association-blockchain-revolutionize-securities/
By Pete Rizzo
Compiled by: Satuoxi
Editor: Satuoxi
Source (translation): Babbitt Information