bankingciooutlook

Is Crypto-Industry Taking over the Banking Industry?

Banking CIO Outlook | Friday, August 06, 2021

Banks that have been using traditional currencies for generations are still unaccustomed to technological innovation, such as the use of cryptocurrencies. As a result, traditional banks have significant challenges in terms of financial transaction speed, which is slower than the transaction speed of crypto.

Fremont, CA: Cryptocurrencies are the most popular on practically every financial market platform. This is an era of transition, and enormous changes are taking place as the number of financial transactions increases not year after year but on a daily basis. The crypto-industry is mostly driving these shifts. Financial experts predicted that by 2024, the compound annual growth rate would be around 12 percent. The popularity of the crypto-industry is immense, and it is still growing.

Banks that have been using traditional currencies for generations are still unaccustomed to technological innovation, such as the use of cryptocurrencies. As a result, traditional banks have significant challenges in terms of financial transaction speed, which is slower than the transaction speed of crypto. However, in order to prevent being left behind, banks must discover ways to implement this technology because it is the only cryptocurrency that allows for the improvement and advancement of financial services.

Recent industry advancement in cryptocurrency services

Custody Services

Customers can use the custody service to store unique cryptographic keys connected with accessing private wallets.

Easy Onboarding

Banks can bring in new and inexperienced individual investors by offering solutions that assist their clients' adoption of cryptocurrency.

AML/KYC Regulations

As stated by the FinCEN, all transactions using bitcoin or any custodial service handled through crypto firms must adhere to KYC laws; this will aid in avoiding unpleasant transactions, scams, or unlawful behavior. Such restrictions will assist banks and other financial institutions in monitoring customers who engage in crypto transactions.

Concerns Regarding Security

Banks can help to alleviate cryptocurrency holders' security fears. Bringing cryptocurrencies under the control of banks will aid in the reduction of illicit activity.

See Also: Top 25 Companies Providing Sales Technology Solution

Weekly Brief

Read Also