Looking to the huge demand in the crypto space, several banks are now starting to offer investment and cold storage services for digital currencies. For the majority of the time, banks and cryptocurrencies haven’t shared a cordial relationship altogether as the latter’s decentralized distributed ledger technology is supposed to pose a substantial risk to the existing banking systems. However, in the recent times, regulatory bodies of different countries are seen taking a differing stand on cryptocurrencies that involves global banking institutions as well, and the world is still far away from having a unified and unanimous decision for the use of cryptocurrencies.
Let us have a look at how banking institutions from around the globe have a varied opinion on digital currencies. According to the latest 10-K annual report submitted by the country’s financial watchdog – The Securities and Exchange Commission (SEC) – a majority of the banks in the U.S. have expressed concern on the use of cryptocurrencies.
WesBanco in the report has said that it sees cryptocurrencies as a possible business risk. WesBanco is currently the second-largest bank by assets in West-Virginia and also holds its operations in other nearby areas like Indiana, Kentucky and Pennsylvania.
The bank wrote: “[B]anks and other financial institutions may have products and services not offered by WesBanco such as new payment system technologies and cryptocurrency, which may cause current and potential customers to choose those institutions.” Another Louisiana-based bank IberiaBank, however, has mentioned the new technological disruption in fintech with a positive connotation, while specifically mentioning Bitcoin. The bank wrote: “Fintech developments, such as bitcoin, have the potential to disrupt the financial industry and change the way banks do business.
Investment in new technology to stay competitive would result in significant costs and increased risks of [cybersecurity] attacks.” Other big giants from the Wall-Street like the Bank of America, JPMorgan Chase, and Goldman Sachs have continued with their critical stand on cryptocurrencies calling them as potential business risks. Asia has so far remained as one of the biggest markets for crypto-currency enthusiasts and traders with major economies like Japan, South Korea, (earlier) China, Singapore and other being at the forefront of it. Read more from coinspeaker.com…
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