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Bitcoin blockchain technology being tested by nine major banks

The Bitcoin virtual currency could be used by some of the world’s biggest banks.

Nine banks that include Barclays and Goldman Sachs, are considering to adopt the blockchain technology to log who spends which virtual coins.

The primary reason why these banks want to use blockchain, is because it is hard to fool the technology, which makes fraud more difficult. Besides just fraud, the technology can also help banks to carry out transactions even faster and also helps to make processes more transparent.

Right now, the Bitcoin blockchain technology is currently being tested by the financial technology firm R3. The firm has signed up nine banks to the initiative. The other seven banks are JP Morgan, State Street, UBS, Royal Bank of Scotland, Credit Suisse, BBVA and Commonwealth Bank of Australia.

In the case of Bitcoin, the blockchain acts as a global ledger that logs all the transactions. And because of the sheer number of people involved who are constantly contributing to verify each deal, it makes it really hard for anyone to get any fraudulent deals verified and approved.

The benefit to banks by adopting this technology would be cuts in the cost of reporting transactions and working out who bought what and when.

As of now, there is no fixed time given as to when the banks will start using this technology.