Banks in cryptocurrency are considered to be rivals in the traditional financial system. One primary reason behind this is that banks had a monopoly over financial transactions before the arrival of cryptocurrency. However, now things have changed quite a lot. Giant banks all across the world are now creating special teams with the sole purpose of working on the concept of cryptocurrency and the blockchain technology backing it.
Alongside this, even new startups have started looking for those employees who know cryptocurrency and how it works. They have been buying them and managing them through the official site with great enthusiasm.
Now, could that mean a possible association between banks and crypto experts in the future? Why have the banks started to offer crypto services to clients? We will find the answers to all these questions in this article.
Programs Dedicated to Cryptocurrency
The year 2022 has come up with a new development. Huge banks all around the world are creating special teams and groups that work solely on cryptocurrency and Blockchain. One major example of the institute going the crypto way is JP Morgan. It has composed a team of as many as 200 people who would work with the Onyx division and is called a crypto team.
The most amazing part of this activity is the fact that it has developed a GPM coin which is a digital currency and will be used to send and receive payments commercially across the world.
While a lot of people are skeptical about this movie by the Institute, others have hailed this development.
What made banks make this shift?
Now the question arises, after fighting off cryptocurrency for so many years and debating about its authenticity and reliability, why have banks finally decided to tilt toward it? The biggest reason behind it will be the fact that people are increasingly inclined toward cryptocurrency and have started to believe it.
The idea of earning huge profits out of cryptocurrency is quite exciting for them. A lot of researchers have stated that most households in the United States of America have at least one person who has invested in cryptocurrency.
The growing interest of people in cryptocurrency and their urge to use it as a medium of exchange has forced banks to shift their thought processes. They have finally decided that there is no point in fighting off this new financial system. Rather, embracing reality would work well in their favor. It is not only the investors that are attracted to cryptocurrency. Rather the general public also relies on digital currency to meet daily transactions. Millennials find it easier to trade cryptos online rather than visit a bank. Alongside them, high-income adults of all ages are also attracted to it
The current scenario
In the year 2021, as many as 23 banks invested in crypto entities to better understand the system. It aided them to become aware of the digital currency per system. These banks turned into active investors of cryptocurrency for instance city group, the Commonwealth Bank of Australia, and the KB financial group.
Should banks be investing in crypto?
While a lot of experts are against the idea of banks investing in cryptocurrency, many support this idea. According to them, this could make banks become important players in this new financial ecosystem. For instance, just as Coinbase has become a prominent exchange that helps cryptocurrency flow in the market, banks can also play a prominent role.
With this association, there is a probability that cryptocurrency holders would prefer moving their points to the banks and transacting them through the new medium.
Final thoughts
The idea of traditional banks associating with the New Age cryptocurrency is exciting. As the banks are hunting for cryptocurrency experts, there are great chances of a possible alignment between these two giant financial systems in the future. If that happens, the crypto market and banks could coexist in the financial world without competing against each other.