Is The Banking Industry Embracing Cryptocurrency? What Does The Future Of Finance Behold?
Is The Banking Industry Embracing Cryptocurrency?
The banking industry seems to be warming up to the idea of banks. At least – a few of them are. For example, JP Morgan Chase is planning on introducing the JPM Coin for payments. Likewise, German Bank Liechtenstein has issued its own crypto stable coin. These steps signify that there are banks out there – and large ones – that are wading into the cryptocurrency waters to potentially meet consumer demand or better yet, to capitalize on a new type of technology that isn’t showing signs of going away.
Further, cryptocurrency may provide banks with a number of benefits. One of the most significant is transactional processing. With cryptocurrency, banks may be able to process more transactions, at a faster rate, and without the exorbitant fees. Of course, it should be noted that this type of approach may not coincide with a bank’s overall goal of making money. After all, fees are just one of the major ways that banks make a profit.
Of course, there are also banks out there that view bitcoin as a technology that is looking to replace them. After all, the two seem to be diametrically opposed. Unlike banks, which are centralized and overseen, cryptocurrency is decentralized and does not depend upon a third party. Further, where banks are inflationary, bitcoin is deflationary. Moreover, the reputation that cryptocurrency has developed as a mode for money laundering and offshore banking may cause banks to shy away. These qualities may make individuals wonder whether the two can even work together.