Is Bitcoin the bank of your future?

Powered by SC Magazine
 

Analysis: The digital disruption of banking.

Millions of people won’t require a bank account in the near future, according to finance entrepreneur Brett King, as technology solutions continue to disrupt the role of funds distribution traditionally controlled by banks.

King’s comments come after the company that operates an exchange enabling the trading of digital currency Bitcoin was licensed as a payments services provider through a partnership with two French financial institutions.

Bitcoin is a decentralised digital currency that instead of relying on a central authority like the Reserve Bank to issue new money, relies on individuals “mining” their own coins and trading them via peer-to-peer networks.

“It doesn’t matter whether it’s Bitcoin or someone else, someone will break the back of this,” King said.

“With the digital world you can’t hold currencies to a single geography any more. You’re going to have a better more efficient way of sending money around the planet.”

King, an Australian consultant and author currently based in New York, is the founder of Movenbank, which is preparing to launch in the US in February. Movenbank will blend mobile banking and a mobile wallet into one product.

The move towards virtual currencies and mobile wallet products is happening as Australian banks continue to invest millions on revitalising their branch networks.

Yesterday Westpac revealed it had spent $240 million on the first phase of a major branch refurbishment program, including new 24-hour foyers with machines enabling customers to exchange notes for coins, and digital touch screens allowing customers to email information to themselves.

“Some commentators have predicted the death of the branch in the digital world but nothing could be further from the truth,” said Jason Yetton, group executive of Westpac Retail and Business Banking.

He added that the advent of mobile banking, first through smart phones and now tablets, had actually resulted in customers wanting more advice from staff about how to manage their finances.

Westpac did not respond to a request for comment about  Bitcoin.

Sam Plowman, head of direct banking at National Australia Bank said the NAB is monitoring a number of developments in what he called the “exciting and rapidly developing” digital payments space.

King said mobile banking and social media were helping to create a “new identity layer” between customers and providers, and disrupting traditional banking,

“Will you still need banks? Absolutely, to cash in and out of the system, but what happens in the distribution layer or the way value is traded is up for grabs.”

Copyright © iTnews.com.au . All rights reserved.


Is Bitcoin the bank of your future?
 
 
 
Top Stories
Hockey flags billion-dollar Centrelink mainframe replacement
Claims 30 year-old tech is holding Govt back.
 
Ombudsman wants to monitor warrantless metadata access
Requests ability to report publicly.
 
Frugality as a service: the Amazon story
Behind the scenes, Amazon Web Services is one lean machine.
 
 
Sign up to receive iTnews email bulletins
   FOLLOW US...

Latest VideosSee all videos »

The great data centre opportunity on Australia's doorstep
The great data centre opportunity on Australia's doorstep
Scott Noteboom, CEO of LitBit speaking at The Australian Data Centre Strategy Summit 2014 in the Gold Coast, Queensland, Australia. http://bit.ly/1qpxVfV Scott Noteboom is a data centre engineer who led builds for Apple and Yahoo in the earliest days of the cloud, and who now eyes Asia as the next big opportunity. Read more: http://www.itnews.com.au/News/372482,how-do-we-serve-three-billion-new-internet-users.aspx#ixzz2yNLmMG5C
Interview: Karl Maftoum, CIO, ACMA
Interview: Karl Maftoum, CIO, ACMA
To COTS or not to COTS? iTnews asks Karl Maftoum, CIO of the ACMA, at the CIO Strategy Summit.
Susan Sly: What is the Role of the CIO?
Susan Sly: What is the Role of the CIO?
AEMO chief information officer Susan Sly calls for more collaboration among Australia's technology leaders at the CIO Strategy Summit.
Meet the 2014 Finance CIO of the Year
Meet the 2014 Finance CIO of the Year
Credit Union Australia's David Gee awarded Finance CIO of the Year at the iTnews Benchmark Awards.
Meet the 2014 Retail CIO of the Year
Meet the 2014 Retail CIO of the Year
Damon Rees named Retail CIO of the Year at the iTnews Benchmark Awards for his work at Woolworths.
Robyn Elliott named the 2014 Utilities CIO of the Year
Robyn Elliott named the 2014 Utilities CIO of the Year
Acting Foxtel CIO David Marks accepts an iTnews Benchmark Award on behalf of Robyn Elliott.
Meet the 2014 Industrial CIO of the Year
Meet the 2014 Industrial CIO of the Year
Sanjay Mehta named Industrial CIO of the Year at the iTnews Benchmark Awards for his work at ConocoPhillips.
Meet the 2014 Healthcare CIO of the Year
Meet the 2014 Healthcare CIO of the Year
Greg Wells named Healthcare CIO of the Year at the iTnews Benchmark Awards for his work at NSW Health.
Meet the 2014 Education CIO of the Year
Meet the 2014 Education CIO of the Year
William Confalonieri named Healthcare CIO of the Year at the iTnews Benchmark Awards for his work at Deakin University.
Meet the 2014 Government CIO of the Year
Meet the 2014 Government CIO of the Year
David Johnson named Government CIO of the Year at the iTnews Benchmark Awards for his work at the Queensland Police Service.
Q and A: Coalition Broadband Policy
Q and A: Coalition Broadband Policy
Malcolm Turnbull and Tony Abbott discuss the Coalition's broadband policy with the press.
AFP scalps hacker 'leader' inside Australia's IT ranks.
AFP scalps hacker 'leader' inside Australia's IT ranks.
The Australian Federal Police have arrested a Sydney-based IT security professional for hacking a government website.
NBN Petition Delivered To Turnbull's Office
NBN Petition Delivered To Turnbull's Office
UTS CIO: IT teams of the future
UTS CIO: IT teams of the future
UTS CIO Chrissy Burns talks data.
New UTS Building: the IT within
New UTS Building: the IT within
The IT behind tomorrow's universities.
iTnews' NBN Panel
iTnews' NBN Panel
Is your enterprise NBN-ready?
Introducing iTnews Labs
Introducing iTnews Labs
See a timelapse of the iTnews labs being unboxed, set up and switched on! iTnews will produce independent testing of the latest enterprise software to hit the market after installing a purpose-built test lab in Sydney. Watch the installation of two DL380p servers, two HP StoreVirtual 4330 storage arrays and two HP ProCurve 2920 switches.
The True Cost of BYOD
The True Cost of BYOD
iTnews' Brett Winterford gives attendees of the first 'Touch Tomorrow' event in Brisbane a brief look at his research into enterprise mobility. What are the use cases and how can they be quantified? What price should you expect to pay for securing mobile access to corporate applications? What's coming around the corner?
Ghost clouds
Ghost clouds
ACMA chair Chris Chapman says there is uncertainty over whether certain classes of cloud service providers are caught by regulations.
Was the Snowden leak inevitable?
Was the Snowden leak inevitable?
Privacy experts David Vaile (UNSW Cyberspace Law and Policy Centre) and Craig Scroggie (CEO, NextDC) claim they were not surprised by the Snowden leaks about the NSA's PRISM program.
Latest Comments
Polls
Which bank is most likely to suffer an RBS-style meltdown?





   |   View results
ANZ
  20%
 
Bankwest
  9%
 
CommBank
  12%
 
National Australia Bank
  17%
 
Suncorp
  23%
 
Westpac
  19%
TOTAL VOTES: 1516

Vote