GlobalData suggested that blockchain technology has replaced bitcoin as the most exciting topic of conversation within the financial technology industry and is being rapidly embraced by national governments and major banking and payments firms.
The data and analytics company explained that the technology allows the transfer of information in a trusted, fast and secure way within a system and can be applied to more than the movement of money.
Murrant commented: “The wider applications of the technology are being realised by governments such as Canada, and major banks including the State Bank of India and Santander. These blockchain-based applications are currently in the pilot phase with full scale launches anticipated before the end of 2018.”
He added: “Domestic payment networks—particularly in countries with instant payment infrastructure—are less in need of blockchain as a solution, but there is an argument to be made for a centralised blockchain ledger in providing greater security and potentially transparency in money transfers.”
GlobalData suggested that bitcoin is no longer a realistic option for consumer or commercial payments due to the high cost and low speed of transfers on the network.
Most recently, China banned cryptocurrency exchanges and South Korea is reportedly considering a similar ban.