The overlay skimming devices pictured here include their own tiny magnetic read heads to snarf card data from the magnetic stripe when customers swipe their cards. Consequently, those tiny readers often interfere with the legitimate magnetic card reader on the underlying device, meaning compromised self-checkout lines may move a bit slower than others.
By replacing independent, fragmented databases with a distributed system, banks can reduce data reconciliation costs while also improving data quality and ensuring data security.
It has become increasingly obvious in recent months that blockchain will be key to the future of the banking industry, with the majority of banks expected to adopt the technology within the next three years.
Rutter said the initial focus would be to agree on an underlying architecture, but it had not yet been decided whether that would be underpinned by bitcoin’s blockchain or another one, such as one being built by Ethereum, which offers more features than the original bitcoin technology.
Once that had been agreed on, Rutter said, the first use of the technology might be the issuance of commercial paper on the blockchain.