Cryptocurrencies: Fast, Secure, Private and Tamper-Free Transactions.
According to a news article published on 14 September last week in Finweek 24, Marius Coetzee, CEO of Business Solutions Company, Ideco, spoke out about the ways the banking sector soon will change forever in his view.
"Faster payments, fewer borders. Apart from impacting the way one uses mobile banking, cashless banking, and self-help kiosks, the new innovations will impact ease of cross-border payments and bring about faster inter-bank transfers." says mr. Coetzee.
The cryptocurrencies which are built on the blockchain (a block of data with information) already allows transactions to be fast, secure, private and tampered free. No need for a middleman like banks. The transfer fees will be much lower than we have today in the banking sector.
He also refers to the Bigbrother vs. The Blockchain:
"Cryptocurrencies and blockchain technology mean more and more ownership is given to the individual transacting via a particular platform, rather than placing the banking industry at the centre. It is estimated that daily there are M$700 worth of cryptocurrency transactions made globally. Customers trust their bank and a bank needs to successfully and professionally work with clients' assets. The reality is, however, that technology enables individuals to do business without the banks. Different cryptocurrencies are available, which brings a risk, but also benefits for consumers," said Coetzee.
The blockchain transactions are getting higher and higher every day. The solution for the banks might be to create Security Token Offerings (STOs) which are regulated by the government of South Africa instead of Initial Coin Offerings (ICOs). Only the SEC (Security Exchange Commission) in America announced on the 11th of September 2018 they are going to regulate the cryptocurrencies to prevent scams. This might be the best solution up to date for the banks to consider. The time is now for banks to start their own Cryptocurrency to compete with businesses not only in South Africa but also around the World. Banks have to look at banking fees and reducement because of the transaction fees which are much lower on the Blockchain.
Smart contracts which are a software program into which the contract conditions are set, is also very important to consider. Mr. Coetzee also refers to AI (Artificial Inteligence). To implement smart contracts gives artificial responsibility on the blockchain, machines will be able to control the financial transactions and will reduce human activities. It will help save the administration work and provide quicker transactions. All anonymous, secure and tamper- free.For more advice please feel free to contact me on 081 269 3916 - for a Consultation. Pieter Lategan