Traditional Banks Need to Adopt Cryptocurrency within Three Years

Cryptocurrency banks are going to establish in the next three years, claims BIGG Digital Assets’ CEO. Traditional banks need to add cryptocurrency services besides fiat’s facilities.

According to Mark Binns, the younger generation will demand crypto facilities from traditional banks in the next three years. Otherwise, traditional financial institutions will lose a significant portion of their customers.

Kraken: First Crypto Bank

Cryptocurrency exchange Kraken is the first ever to become a bank in the United States. It can offer multi-features to crypto clients as it is an officially approved chartered bank.

Kraken is working with Silvergate Bank which is a leading bank in offering crypto services. Silvergate has received over $1.5 billion from different crypto-related companies.

JPMorgan is another latest major bank that has shown interest in digital assets. In the past, JPMorgan CEO Jamie Dimon used very harsh words for Bitcoin and cryptocurrency. But now, it is working with top crypto exchanges such as Gemini and Coinbase.

In the coming years, consumers will see banks offering services both in fiat and cryptocurrency. But banks will have to use certain tools in case of cryptocurrency. These include blockchain tools that assist in tracing the origin of crypto transactions.  It is a popular narrative that blockchain transactions are private, but in fact, it is easy to find the pathway of these transactions. In comparison, it is difficult to trace fiat currency origin.

DeFi is a Major Ignition for Crypto Banking

Decentralized finance (DeFi) is the latest innovation in the crypto industry that could accelerate crypto banking. And the trust of people over DeFi tokens has increased over recent months as the total value locked in DeFi protocols has reached almost $10 billion.

Central banks have already started work on researching and developing central bank digital currencies. Most of them are close to launching state digital currency, such as China. China has launched many pilot programs in different cities to test the feasibility of digital yuan.

Binns explains that the banks who fail to adopt cryptocurrency will be left behind. And it is the best time for traditional banks to join the cryptocurrency race.

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