Bitcoin, which first launched in 2009 and now has more than $4.7 billion in annual value, is a decentralized virtual currency that allows users to trade with each other at a fraction of the cost of a traditional currency.
Its popularity has sparked a growing interest in cryptocurrencies, which use cryptography to prevent unauthorized access to funds.
Now, for the first time, a major bank is starting to consider using the cryptocurrency.
The first bank to consider it would be HSBC, which is exploring the concept of a blockchain-based virtual currency to offer a more transparent, secure and secure way to store value.
The move comes as bitcoin, a virtual currency with a market capitalization of $2.6 trillion, is also gaining traction in the financial world.
It has helped bring the cost to the banks of maintaining a single record of an asset down from the billions they had to pay to keep it, and the digital currency has made it easier for people to transfer money online.
In recent months, banks have started to use bitcoin to pay staff more quickly, as well as to ease regulatory scrutiny of the currency.
“This is a technology that’s going to help bring transparency to the world, and we’re going to explore ways to use it,” said HSBC’s chief financial officer, Simon Hirschhorn.
“We’re not ruling out it, but we haven’t had any discussions yet about it.”
Hirschhorn said he believes bitcoin could revolutionize banks’ businesses, but that it needs to be carefully managed.
“There is a lot of hype around this technology.
We’re in the middle of the revolution in the finance world,” he said.
“It’s going into this space that is very risky, and there is no way that we can do everything we want.”
The bank is currently considering two different blockchain applications.
One, the digital asset ledger, or blockchain, is the system that enables banks to record digital currency transactions and transfer that money between parties.
The other is the digital wallet, which stores the currency in a central location.
Bitcoin uses a peer-to-peer ledger to avoid a central server and ensures transactions are recorded on a decentralized, distributed network.
“The blockchain is the technology that allows you to store and transfer digital assets, so it is an extremely powerful technology,” Hirschhead said.
“When you think about it, we have been doing banking for over 100 years, and what we’ve found is that the more you use it, the more risk you take,” he continued.
“The blockchain has been used by financial institutions to manage their risk, and it’s very much needed.”
“The other one is a blockchain wallet,” Humbleton said.
The bitcoin blockchain can record and transfer data across multiple platforms, which means the system is much simpler to manage than the ledger.
“If you want to move money across the world or a currency, you just use a different payment method, and you don’t need to know anything about the blockchain,” he explained.
“You can use a bitcoin wallet.
You don’t even have to know bitcoin, you can just use the blockchain.”HSBC’s blockchain wallet is based on a bitcoin-based cryptocurrency called bitcoin cash, which was launched last year and has been valued at $13.4 billion.
Hirschhorn said the bank is looking to use blockchain for more than just payments.
“I think it’s going be very interesting to see how it is used for other types of things,” he added.
Humbleton says it’s likely to be the next big thing in the banking world.
“When you look at the growth that’s taking place in the tech industry, it’s a little bit like the dotcom bubble, but a little more of a global thing,” he noted.
“So it’s really a global phenomenon.”
The Bitcoin Cash project has been working on its blockchain wallet for several months.
Humbleson said the project is currently in the process of adding new features to its platform, including “proof of ownership,” which would allow users to check the authenticity of a transaction.
Bitcoin Cash also has a way for businesses to track their customers’ purchases.
The blockchain could also serve as a way to track transactions to customers.HSBC will have more information about the bitcoin wallet and the blockchain wallet in a later interview with Polygon.