Why crypto currencies will still prosper – with or without the help of banks?
For many years, Bitcoin and other crypto currencies remained a fringe movement, generally unknown to those outside the immediate community. In 2010, a year after its invention, one Bitcoin was never worth more than $0.50, but the unprecedented attention that crypto currencies and Blockchain have received in the last two years has led to sharp price spikes, forcing ordinary consumers, businesses and institutions across a wide range of industries to sit up and take notice.
In the UK, Barclays (British multinational investment bank and financial services company) has been a frontrunner for crypto currency adoption. In March, the bank announced that one of the biggest crypto currency exchanges, Coin base, had opened an account with them. This took place shortly after Coin base were granted their e-money license in the UK, obtaining access to the Faster Payments Scheme. With the initial hype phase over, we may see more banks viewing crypto currencies as an opportunity rather than a threat.
How Crypto currencies Shift from defensive to Opportunist stance?
The gradual shift from the defensive to opportunist stance is further underlined by a number of countries battling it out to become a hub for crypto currencies and Blockchain technology. Notably, Estonia has attracted substantial attention for its proposal to issue a government-backed crypto currency called Estcoin which would most likely be integrated with their existing innovative e-Residency ID program. Interestingly, Estonia has issued a number of e-money licenses to crypto currency-based companies, and Blockchain is already implemented into their existing infrastructure for security and legislative registries. Likewise, Malta, Singapore and Dubai have made considerable efforts to establish themselves as key players in the spaces, hoping to attract a share of the investment still being ploughed in.
Why banks consider adding Crypto Currency features to their systems?
Banks consideraddingcrypto currency features to their systems, in-house development looks time and cost intensive. And as with other areas requiring rapid innovation to keep up with the fintech world, there is a major shortage of people with the right skills throughout the software development chain. To get a kick-start, a viable alternative is enlisting the help of pre-built third-party applications, like CREALOGIX Invest Crypto: a product created for banks and wealth management designed to save vital development time, and create new sources of revenue for established financial institutions.
Crypto-enthusiasts can feel a sense of satisfaction in seeing that traditional banks are finally taking crypto currencies and Blockchain seriously. Both the crypto currency and wider DLT (Distributed ledger technology) market are now worth billions and have promising futures. With the technology and business applications starting to emerge from early hype into more mainstream adoption and productivity, it’s now a question of which banks will move fast – and which will be left behind – in the sprint towards crypto integration.