Blockchain really has the potential to reduce transaction costs and even the time it takes to do these transactions as well. This will cut down on the amount of bank fees and the commissions that people face. Switzerland is at the most risk here and this is because they have a huge banking industry. Their industry generates over half of their revenue from things such as fees and even commissions. This comes straight from the ratings agency.
The problem is that Switzerland is also one of the many nations who are very sensitive to the technology that blockchain offers. The main reason for this is because it has the ability to reduce the amount of fees experienced by cross-border transactions and it can even help to boost the efficiency of them as well. Blockchain technology powers Bitcoin, and according to Moody, it’s going to hurt Swiss banks the most. He states that even though cross-border transactions would be far less expensive and faster, it could also create a negative for banks. Switzerland generates over half of their banking revenue from commissions and fees.
The best thing about Blockchain is that it has the ability to completely eliminate the need for any third party. It creates a secure and permanent record of the transactions that run between the two parties and it is the first application of its kind to be able to do something like this. Blockchain can also reduce the amount of time for this to happen as well, shortening the time from days to a matter of seconds.
When you look at Moody’s own list of countries whose banks seem to handle the most border payments you will find that Switzerland is third, and the UK is at the top of this list with Belgium. Switzerland was once known for being the international banking hub, and they have also become one of the friendliest countries in the world if you are a currency enthusiast.
In fact, the Zug region is known as being the Crypto Valley and this is all down to the amount of businesses who have located there so that they can get a better hold on the cryptocurrency market.