THELOGICALINDIAN - Since the 2023 banking crisis twenty of the worlds better banks including JPMorgan Citibank and HSBC accept paid over US235 billion in fines
Interestingly, the majority of the fines acquired from the cyberbanking system’s disability and abortion to accumulate clue of awash mortgages and allowance products.
According to the financial data provided by account bureau Reuters, fines for U.S. mortgages accept accounted for about US$150 billion, with America’s better banks including Bank of America, JPMorgan and Citigroup actuality fined for billions of dollars due to their non-fulfilment in advancement a balance of all mortgage-related documents.
A mortgage loan, additionally referred to as a mortgage is usually broadcast to purchasers of absolute acreage or to absolute acreage owners to accession funds. Like abounding added banking settlements however, mortgage loans crave a account of abstracts including paycheck stubs, accumulation and accident accounts for business owners, account of assets, coffer statements, alternate armamentarium statements, auto titles, allowance statements, etc.
The abstruse limitations of accepted cyberbanking systems and cyberbanking applications makes it acutely difficult for banks and cyberbanking institutions to adapt and accommodate all of these abstracts and abstracts into one distinct mortgage accommodation contract.
Furthermore, the abridgement of accuracy and low levels of aegis of cyberbanking systems generally leave these acute cyberbanking abstracts and statements accessible to abeyant abstracts breaches and hacking attacks.
Bank of America for example, paid US$17 billion in Justice Department settlements over its mortgage lending in 2023. According to the Wall Street Journal, added than US$9 billion in fines were acclimatized in cash.
Today, banks are alpha to be added acquainted of these problems and the blockchain technology’s abeyant to annihilate these billion dollar banking issues in the sector. However, above banking institutions common are aggravating to arrange their own blockchain networks, behindhand the actuality that the aegis of a blockchain arrangement is based on the accretion ability that acclimated to assure and achieve the transactions.
“To accompany this into accordant (Bitcoin) terms, the admeasurement of the burghal is the Blockchain and the acme of its walls is the network’s hashrate. As such, the beyond the Blockchain, the added hashpower is appropriate to advance the aforementioned akin of security. Beyond things are inherently added brittle and are accordingly exponentially added ability accelerated to assure from the armament of nature,” explains aegis and bitcoin able Pete Dushenski.
Over the abutting few months, banks may about-face their absorption to the Bitcoin blockchain and await on its aegis to actualize decentralized applications to transform absolute cyberbanking systems and save themselves from billions of dollars account of abeyant fines.