Bwaahhahahahahaha!!!!
Deutsche Bank Joins Venture to Offer Blockchain Products
https://global.handelsblatt.com/finance/deutsche-bank-joins-venture-to-offer-blockchain-products-682447
A choice quote:
"Some banks are already using blockchain technology to conduct security trades with utility settlement coins, a digital currency, instead of traditional bank transfers. By going digital with blockchain, banks don’t have to keep as much capital and liquidity on hand for financial transactions."
Deutsche Bank Joins Venture to Offer Blockchain Products
https://global.handelsblatt.com/finance/deutsche-bank-joins-venture-to-offer-blockchain-products-682447
A choice quote:
"Some banks are already using blockchain technology to conduct security trades with utility settlement coins, a digital currency, instead of traditional bank transfers. By going digital with blockchain, banks don’t have to keep as much capital and liquidity on hand for financial transactions."
Are you basically saying it's only a matter of time before bitcoin is used OR do you think they are using it (trialing it) instead of "utility settlement coins"
Both.
1. Fairly quickly, they will discover that bank-created "utility settlement coins" are fairly useless. Unless this is just a cover story, a lie to deceive the public.
- but -
2. I suspect that secretly, they are really building the infrastructure for Bitcoin long term, and may even be testing it. Some day they will have no choice but to plug into the Bitcoin blockchain.
So both hilarious (short term) and bullish (long term)
I'm just a simple hodler and not up to scratch technically compared to you guys (but better than normal folk) but how do so called settlement coins work for banks? What's the incentive exactly with these coins? How does it all work?
I can't figure out how they can create their own coin and hey presto all working well.
Honestly, I'm not sure if any really knows what these banks plan to do with their supposed "blockchain" services. They already have the ability to transact and do settlement with each other in a trusted fashion, seamlessly and fairly frictionlessly, so it's a complete mystery why they would need "blockchain integration" for that purpose.
My bet is on them creating blockchain-enabled (sidechain?) derivatives for new/emerging commodities, hedge markets, etc. Bitcoin seems like a perfect fit. Sure they could create and pre-mine a new PoS like coin and create a market for it, but who would trust it? Who would purchase and trade it, and why? Just using it 'internally' within a small network of trusted banks won't really do anything amazing for them.