The block chain is the underlying technology behind Bitcoin and is being recognized by the major banking and finance industries out there. Bank of America is the latest of the large banks to go ahead and begin experimenting with using the block chain to foster financial trade transactions. The idea behind this is to see if the technology is feasible for use in real world applications such as distributed ledger technology. Currently this would be seen as a leap forward for the financial industry because they would be going away from transactions based on the manual input from paper trades.
Jason Tiede who heads the innovation for global transactions at Bank of America had a lot to say on the matter. He said that at the company they are focusing on working on a block chain for trading in the financial sector. He said it is an interesting idea to take the trade finance from paper based manually submitted transactions and put them into a digital distributed ledger. He disclosed that they are testing it with a bank they did not name and it should be out on the real space being tested by late spring of 2016.
Bank of America’s Push
The news came after there was a request of multiple crypto-currency patents in the past year made by the financial institution. The first patent that Bank of America filed for was one dealing with wire transfers that involved crypto-currency. This was released back in September 2015 but was originally filled with 10 other applications originally filed back in June of 2014.
At the same time Bank Of America is not yet finished and is in the process of making up 20 more patents that should have been submitted in January of 2016. Bank of America is also part of a coalition of 42 of some of the largest banks spread throughout the world working on developing block chain to add to the current day process of banking.
This could be seen as a great step in putting out an experimental technology and new way of doing things and getting it not only recognized by the establishment already, but giving it much needed weight and confidence to be utilized and used. After all without the public opinion this would not be at the place it is today. Bank of America is following the lead of some banks that got on the block chain bandwagon before itself but it is significant for them as a company because of their vast size and large market capitalization in the financial sector.
Bank of America’s incursion into the industry for developing block chain technology comes off the heels of other smaller banks who have done the same thing. There was a bank in London, Standard Chartered that began to do this a while back, as well as one in Singapore called DBS. The two of these banks are releasing it out into the public eventually and have already tested the technology between each other as a proof of concept.