Reconciliation solved by digital currencies and the blockchain technology in financial institutions and system

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by Wirba Brice Divine Ransinyuy

These two joined together is a symbol of change and innovation. With the support and the backing up of the blockchain, digital currencies have brought a total view point of how the financial market is being looked upon.  Today’s financial systems and services are constructed on proprietary such as siloed systems that do work and interoperate well among themselves. Due to this lack of interoperation, it makes it extremely hard for any financial cooperation to be adequate at all levels. Due to this, the financial ecosystem is being compromised of so many reconciliation companies which provide services like investment management, banking and insurance. Reconciliation in the financial world at this money is very important, per se it could be look upon as a necessary evil made to answer to the nature of database technology. If reconciliation comes into place and practice, it will permit to give an opportunity to imbalances and dysfunctions to build up and correct mistakes in the system. This is particularly where the options like digital currencies and the blockchain come into play. They give an opportunity where it cannot be seen elsewhere. Digital currencies and the blockchain are right options to balance up the imbalances that are found in the financial system.

With the coming into play of digital currencies that commonly and always work out as a decentralized market infrastructure constructed on standards-based Web3 technology, it subsequently limit the need of reconciliation, heavily improve the flowing of information, give financial market infrastructure operators necessary tools to control and overview, thereby addressing mistakes and errors in real time before they could eventually become large imbalances and dysfunctions, thus leading to a full-blown financial crisis which will be eventually extremely hard and difficult to control, talk less of overcoming it. The best way to solve an issue or problem is by tackling it when it is still in its early stages.

When a solution is introduced at an early stage, it very good and helpful to the process and procedure. This is exactly the case with financial institutions of financial systems. When a real-time settlement is being introduced on a timely basis, it is very good since it will require less energy, less time, and less capital to solve the financial crisis or problem. This is particular the case with the blockchain and digital currencies as they require less energy, less capital and less time to execute themselves. Due to this companies, organizations as well as countries and states that have adopted the use of the blockchain and the establishment of a home based national digital currency ensures them all that, they can operate at their maximum optimization and profitability. With a decentralized global register, settlements are more straightforward as balances are far faster, easier and cheaper to reconcile.  

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