SWIFT Business Forum to Focus on Threats Bitcoin Poses to the Financial Industry

The Business Forum 2015, which will be held by SWIFT in March, will address key challenges of using bitcoin in the banking system.

Photo: SWIFTcommunity/Flickr

Photo: SWIFTcommunity/Flickr

The Society for Worldwide Interbank Financial Telecommunication (SWIFT) is planning to discuss crypto-protocols at the Business Forum 2015 that will be held next month. The participants at the event will speak on the cryptocurrencies and their influence on banks and the payment system.

The panel, called “Could new entrants and crypto-protocols threaten the correspondent banking model?” will also discuss new start-ups and their impact on the banking system.

“With the continued de-risking, closing of nostro relationships and more examples of global direct-to-ACH payments, some even declared that “correspondent banking is dead”.

Hear from this panel of experts who will help you understand the latest forces that could be disruptive to the global corresponding banking business – and, if that model is considered no longer future-proof, what the new model could look like,” the description of the panel reads.

The event will be moderated by Wim Raymaekers, SWIFT’s Head of Banking Markets. The event will include professionals from the financial industry, such as Marc Hochstein, editor in chief at American Banker, Houman Shadab, professor of law at New York Law School and Cheryl Gurz, managing director at Emerging Technology Segment at BNY Mellon Treasury Services.

All the participants are involved in the bitcoin industry. Thus, Houman Shadab took part in investigating the legal system around digital currencies and spoke about bitcoin derivatives before the U.S. Commodity Futures Trading Commission (CFTC). Meantime, Marc Hochstein is a writer of articles on virtual currencies in the American Banker.

The meeting will take place on the 3rd of March at the Marriott Marquis hotel in New York City.

SWIFT provides a network that enables global financial entities to send and receive data on financial transactions in a secure and reliable environment. The organization projects to create messaging protocols for different financial transactions, such as retail payments. In general, the network carries more than 15 million messages across the world each day.

SWIFT’s messaging system has been utilized for communication between banks and financial institutions that make payment transactions. The realized orders are then settled by the accounts that the banks have opened. In order to communicate SWIFT utilizes the latest ISO 20022 and also uses ISO 15022.

With the emergence of new cryptographic protocols, the idea of settling correspondent banking system might get out of date. Moreover, the development of bitcoin means it is possible to control balances and settle accounts on a real-time basis. Besides, the use of the blockchain technology ensures transparency of transactions and is a great solution for smaller transactions, including retail banking.

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