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Blockchain and Banking: Disruption on a Global Scale [INFOGRAPHIC]

Blockchain technology is being touted as an infinitely disruptive force in the banking sector. A large amount of this hype is fairly Utopian, with talk of open markets, free money management, and easy earning. However, regardless of the technology’s benefits, it will not change the landscape in terms of compliance and regulations in the job market.

  • Income tax,

  • employment regulations and

  • governance must be adhered to.

Any employee, in any country, must be paid in accordance with the country’s legislation. This will not change.

With blockchain technology, it could just get faster.

At the moment, international payments go through a rigorous and protracted process, with asset-transfer through SWIFT taking anywhere between a few days and a few weeks.

With the advent of Blockchain records, and the potential to cut out the middle-man in asset-transfer and record-keeping, global transactions can be managed by banks, in-house, and asset-transfer can be accomplished in less time.

How does this impact banks and business, worldwide?

Our infographic breaks down the benefits, implications, and concerns.

Banks can replace their record-keepers and manage these processes in-house 1. Speed of messaging increases 2. Transmission time of assets is reduced 3. Backend processes are reduced and made less cumbersome Global Transactions will thrive, and new talent will be developed. 1. Improve the workforce and boost globalisation 2. Increase banking revenues (less to be outsourced) 3. Improve speed of cross-border payments

The concerns around this technology are still plentiful: 1. Security 2. Skills required 3. Protocol must be updated 4. All processes must follow the governance of banking. Where Compliance matters: 1. New, global skills – workforce compliance 2. Payments cross-border still have to follow regulations 3. Tax is not imaginary, even though bitcoin is. Utopia? Not quite. Disruptive? Absolutely.

To get an update on your compliance procedures, or request assistance with your global talent management in the gig economy, contact CXC Global / CXC Corporate Services.

Contact CXC Corporate Services

Words by Alison Krumm

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