Cryptocurrency is no longer baseless talks about the future. It is a current and future occurrence that every financial institution should dive into. Investors like Rick Rider, BlockChain Chief investment Officer, put it out to the public in no simple terms stating that” Bitcoin could replace gold”. The sudden rise of bitcoin rates in the market in recent days has lead institutions such as the independent research house to “change their minds about the role of bitcoin in asset allocation.” Said Alliance Bernstein. With this trend, it should come as no surprise when bankers introduce bank slips that accommodate cryptocurrency.
Recently, banks have vigorously taken upon themselves to find opportunities accorded by their clients who have integrated cryptocurrency use. For example, the institutional investors who have dived headfirst into crypto trading. However, banks need to assimilate and adjust from using money to crypto if they want to survive this evolving market.
How can banks transition easily?
Step one
Every task has to be learned, and that includes cryptocurrency. Therefore, banks should equip themselves with the latest technology capable of performing algorithms that go hand in hand with crypto currency while at the same time, not disrupting the current working currency program. The bank should provide training to all staff members on how cryptocurrency works. Training can be done by experts such as custodians and exchanges.
Step two
Banks should then partner with the Decentralized mining pools (Defi) startups to gain experience on how client-controlled assets (self-custody) feel.
Step 3
Banks should then embrace permissionless blockchain solutions at the pace of the traditional proprietary walled garden solutions. This way, they can experiment using communal operation models on the internet environment built on shared data and logic.
Simply put, banks need to adjust their banking apps and integrate cryptocurrency as soon as yesterday to increase the survival rate of financial institutions as payment methods continue to evolve.
The future of money will be built not with cards, SWIFT messages, and interchange fees, but with programmable tokens, network services, and smart wallets”. These are words of wisdom written by the famous author David Birch In his book ‘The Currency cold World.’ This serves as a prediction into the path banks, and every other financial institution should take. As much as considering interest rates, the value of the US dollar is significant, banks and financial institutions should consider the future of purchases and embrace cryptocurrency.
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