Banks to use bitcoin technology blockchain as soon as 2016

 
Jessica Morris
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Blockchain is the technology underpinning bitcoin (Source: Getty)

Banks could integrate the technology underpinning cryptocurrency bitcoin into some parts of their business as early as next year, according to a new report.

Bitcoin utilises blockchain technology which enables the transfer of financial assets using cryptographically secured networks, and consequently removed the need for a third-party intermediary.

Read more: UBS plays down potential of bitcoin

The report by TABB research said blockchain solutions could be rolled out for syndicated loans as early as the second quarter of 2016.

"Blockchain’s adoption across capital markets and for a range of use cases is a matter of 'when, not if'. Over the next 12 to 24 months, we will see early adoption grow," the report said.

But we're still a while away from full implementation. Cases such as derivatives may still take at least two to five years, while functions such as cash transfers are still at least a decade away.

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