Analyzing How the Year 2019 Can Bridge Bitcoin with the Global Financial System
Cryptocurrency and banking entities have an interesting relationship. Though it would seem that banking entities would embrace digital assets and allow them to flow freely through their systems, the opposite seems to be true. Many individuals are being penalize for using digital assets in relation to their bank account. For example, banks in several countries may take action to block bank accounts if the owner deposits funds liquidated from a crypto exchange or other trading venues. As a result, not many vendors are willing to accept bitcoin and other cryptocurrency.
There is discourse as to whether the lack of cooperation among banks has to do with government intervention, anti-money laundering measures, or simply feeling threatened by the growth and development of crypto.
The good news is that many are looking to 2019 as the year where things may change. Many are hopeful that outstanding issues such as uncooperative banking systems, regulatory uncertainty, fragmented entities domineering over the crypto sector, and other factors will reach resolution. Thus, the system will become much more compliant, consumer-friendly, and clean. Better yet – banks may be willing to open their doors to the crypto community as well.
One bank is already making the move. EQIBank plans on opening private and corporate accounts at the end of the year that will enable customers who use cryptocurrencies to transact and to participate in a peer-to-peer crypto loan program. The bank operates offshore, which makes it easier for it to function amid regulatory uncertainty. There have been several small European banks that have made similar attempts. The more small players that get involved, the higher chance there will be that they’ll be able to generate a significant market share due to the lack of competition. There are also many businesses and individuals seeking service in the crypto industry.
Though it would be premature to conclude that 2019 is certainly going to be the year where the crypto community and banks overcome their differences and any issues, it is safe to say that things seem to be off to a good start.