Cryptocurrency is a widely accepted concept in today’s financial landscape. This has not always been the case however, and the progress to this point in recognition has been gradual.
Here are some of the key ways in which the view of crypto has changed significantly, in terms of its acceptance by financial institutions over time.
Softening of skepticism:
Many institutions were very hesitant to step into crypto, but this stance is changing rapidly.
JP Morgan Chase has crypto-focused services, and Bank of America CEO Brian Moynihan recently told a World Economic Forum gathering that “the banking system will come in hard on the transactional side of it [crypto]” if likely imminent regulations fall into place in the U.S.
Institutional interest in crypto only continues to grow as the currency gains ever-increasing global traction.
Regulatory clarity:
The early days of crypto made traditional financial institutions nervous and untrusting of an unregulated asset, but with time regulations have been developed and imposed.
In Europe, MiCA (Markets in Crypto-Assets) is now in full force, and a regulatory framework for crypto is high on the agenda for lawmakers in the U.S.
Integration of Blockchain:
The technology is ingrained in many operational levels of banking in a variety of ways, from digital identity verification through to trade finance platforms and cross-border transactions.
Blockchain’s security characteristics and its speed have helped advance many areas within the industry.
The descriptions provided above are all based on publicly available information, and cannot be considered as financial advice or encouragement to invest. Sources of information used in this post include Investopedia, European Commission and Forbes. All transactions involving digital assets involve certain risks, which you should familiarize yourself with prior to any investment.