JOHN GLOVER: Hello and welcome to another Pendragon Straight Talk. This week’s question is quite a quick one what will instant pay from the banks mean?
It means what it says, the money will move instantly. Not overnight, or over the weekend, but instantly, like a text does at the moment.
Money will move between banks locally, and globally, instantly.
Blockchain technology which you have heard me talk about other Straight Talks, will sit behind these transactions, acting as the legal ledger for them.
For instance, if you’re out with a friend, and they want to borrow some money, you will be able to send it to them electronically instantly.
If you want to buy a car, like I’ve mentioned before, in one transaction, the money, it will happen in front of your eyes, and you can purchase the car.
This is going to occur later this year. All the banks are on notice across the world and they’ve been told that they have to have this ready by the end of 2017. Whether internationally they will have it ready by [the end of] 2017, I don’t know, but definitely locally banks will have it ready.
So the question is – where will the banks make their money from? Will they even be needed in the future?
A lot of banks are aware of this and they are looking at other ways of looking after us as customers.
Bitcoin is a global currency that you can do this with already and this runs on Blockchain.
Long gone are the old days of the excuse of ‘the cheque is in the post.’ So how long will it be before cash disappears? That’s the big question, because once you’ve got this instant movement of money, actually, cash is not required.
So, what will instant pay from the banks mean?
It will mean things will move far quicker, cash flow will be better and most probably, the removal of cash at some point.
Thanks for listening, I look forward to talking to you next week.
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