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Banks Wary of Blockchain-based Payment Systems

25 September 2018 Internet, IT & e-Discovery Blog reported that while “blockchain-based payment networks could help eliminate central authorities and their accompanying fees for cross-border transfers, banks and other enterprises see risks.” The September 25, 2018 article entitled “Banks remain wary of blockchain-based electronic payment networks”included these comments from Fabio Chesini (Gartner research director for transaction banking):

Using a new infrastructure rail based on blockchain by using them for messaging [does] not have a clear business case for banks when [they’re] considering replacing existing traditional correspondent banking services. Also, [it’s] worth highlighting the novelty of these platforms and their lack of maturity for being used in mission-critical businesses such as cross-border payments,

Stay tuned to see how this changes in the near future.