Banks was initially not very enthusiastic about Bitcoin & Co.
Former Citigroup CEO Believes Crypto Trend Is Unstoppable
US officials announce more clarity in regulation of cyber currencies
It should come as no surprise that financial institutions such as banks or money companies were not initially enthusiastic about the idea of ​​cryptocurrencies. Ultimately, it is the stated goal of digital currencies to enable unlimited, instant, secure and cheap payment transfers, in which a trustworthy financial institution is replaced by a fraud-proof and transparent blockchain. Accordingly, banks as intermediaries will become virtually unnecessary.
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Accordingly, it is not surprising that the first reaction of bank representatives to the emergence of Bitcoin & Co. was initially negative. A well-known example of this is JPMorgan boss Jamie Dimon, who over the years has never stopped to say that bitcoin is a “terrible” investment and that cryptocurrencies are not real currencies because they have no intrinsic value.
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JP Morgan himself a crypto pioneer
But despite the negative attitude of its owner, American investment bank JP Morgan has now established itself as a leader in the crypto space. Since 2020, the finance house has its own blockchain-based platform called Onyx, which has already launched its own digital currency, JPM Coin, which is pegged to the US Dollar and can be used within the system .
EX-Citi CEO Believes Crypto Trend Is Unstoppable
So there is already a turnaround in the financial world which, according to ex-Citigroup boss Vikram Pandit, is likely to accelerate in the near future. During the Singapore Fintech Festival, the CEO of Orogen Group predicted to Bloomberg that “in one to three years every major bank and/or securities firm will be actively thinking ‘should I not trade and sell crypto assets’ ?'”
In his opinion, the traditional banking system is out of date and trying to modernize the paper-based system would be “cumbersome” and would lead to unnecessary costs. Because of this, he hopes that “central banks around the world understand the benefits of central bank digital currency and move to accept and use them”.
According to a Bloomberg report, Pandit himself has invested in crypto companies Coinbase and Alchemy Insights.
US authorities announce clear regulation of cryptocurrencies
The US Federal Reserve recently published a joint statement with the Federal Deposit Insurance Corporation and the Office of the Comptroller of the Currency, detailing the next steps authorities take regarding the regulation of cryptocurrencies in order to provide more clarity on the fledgling sector and Can you Next year banks with better guidance on how to use cryptocurrencies. The objective of the guidelines, on the one hand, is to protect the consumers and motivate the banks to act responsibly.
A specification of official requirements for trading in cryptocurrencies should give banks an important compass as to how they can deal with the cybercurrency sector and how they can use it for themselves. Here too, more clarity should generate more interest from the finance houses.
Finanzen.net Editorial Team
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