At the dawn of cryptocurrencies, banks faced an important decision. Should they embrace blockchain technology or should they try and disrupt this new technology? Initially, banks had a very cautious approach. As time passed things have started to shift, and people, as well as businesses and banks, started to trust the blockchain technology. Banks realized the potential of these innovations and now they are trying to find ways to use the blockchain in order to create the more beneficial monetary environment. Of course, this is not the case with all banks, but great changes are starting to appear.
Report of Germany’s Finance Ministry
One of the first big changes happened in Germany. As Reuters reports, at this point there are at least six banks in Germany that are actively involved in cryptocurrency trading. This information was revealed by BAFIN, a financial regulatory agency of Germany's Finance Ministry.
We are aware that there is a lack of trust towards trading with cryptocurrencies. Most of the distrust is coming from the fact that cryptocurrencies are unregulated. And precisely because of that fact, this information from BAFIN is crucial. BAFIN reported to the parliament that there is no case against any financial institution involving money laundering or other malpractices in reporting obligations, in regards to cryptocurrencies. This goes to show that legal crypto trading business can exist even though the field is still unregulated for the most part. German banks show the way in which traditional monetary system can coexist with new blockchain based monetary systems.
Ministry also reported that the number of malpractice cases regarding cryptocurrencies has significantly declined. This is also positive as perceiving cryptocurrencies as a clear business would massively benefit public perception of the technology.
Crypto-Banks Symbiosis is on the Verge
The number of crypto enthusiasts is increasing every day and banks understand that they have to comply with their customer needs. The ability to adapt to a newly created environment is a key aspect of surviving in the market. Newly created blockchain and cryptocurrencies units now exist in banking giants such as Goldman Sachs, JP Morgan, and Barclays. The Goal of these units is to analyze and create a method in which banks can satisfy the needs of their crypto oriented customers.
New technology also created new experts in the field. Blockchain experts are now in high demand on the market, especially as the banks are trying to make themselves a part of the cryptocurrency world. It is not a wild guess to say that in the near future crypto trading could become an essential part of every responsible banking system.
Who benefits from this? Cryptocurrencies as an integral part of future mainstream banking system might be a great move for the introduction of the blockchain into a mainstream business field. On the other hand, we have to note that blockchain revolution didn't presuppose merging with the banks. It is important to analyze whether this plausible outcome will cause damage to the further cryptocurrency-related innovations. Nonetheless, as a short-term goal, it might result in a positive outcome for cryptocurrencies as they can become part of everyday monetary life through the banking system.
What do you think of banks adoption of cryptocurrencies? Will cryptocurrencies be as effective as planned as a part of a banking system? Share your opinion in the comments!