The emergence of blockchain technology has changed the development of global digital payment system business. With the impact of new cryptocurrency projects on banks and other financial institutions, many companies are forced to start making changes to their systems.
In the traditional financial system, the regulator will monitor your operations in order to maintain the integrity of the system, and the process will incur large costs and may be full of fraud. But the blockchain system gains integrity by incentivizing the best interests of the system and allowing anyone to verify it.
Blockchain and cryptocurrency are integrated into all walks of life to solve traditional solutions with safer and more efficient technologies. Although it is well known that it cannot replace cash, it may have the opportunity to replace or cooperate with traditional banking systems. Blockchain as an important innovation field of financial technology, can it replace the traditional banking system in the future?
https://www.ibtimes.com/can-these-blockchain-solutions-replace-traditional-banking-system-3259844Actually, blockchain solutions have already started to replace traditional banking systems especially related to cheque clearance and transaction settlement between banks. I heard on one such example in Europe a couple of years back and now in India too banks are starting to use it as a system. Here is a source of the article :
https://thepaypers.com/e-invoicing-supply-chain-finance/15-indian-banks-get-together-to-form-blockchain-trade-finance-consortium--1249797#:~:text=15%20Indian%20banks%20get%20together%20to%20form%20blockchain%20trade%20finance%20consortium,-Thursday%2017%20June&text=Th%20e%20banks%20involved%20include,reduce%20the%20volume%20of%20paperwork.
This helps them in decreasing the transaction costs relating to the inter-bank settlement. Moreover, when it comes to banks and their settlements, everyone likes an environment where there is no regulator in between and no one has supreme authority, even the central bank only has access limited to the reporting requirements imposed by them.