Banks Are Gearing Up For Crypto
The banking sector hasn’t jumped into the crypto space just yet. The main reason is that they wouldn’t have a backstop or insurance like conventional investments. If a pension fund were to have their investment at a bitcoin exchange hacked, they would have no way to recoup their losses.
As this young market develops and evolves, the invention of blockchain and DLT are definitely not going to disappear. Investment banks have already come to this realization, they are all waiting on the sidelines for more of a parachute to jump into the abyss that is crypto.
In this Video, the coming coexistence of crypto and fiat is discussed. Many banks could issue their own cryptocurrencies, and offer more liquidity and insurance in the space. This would be reminiscent of a “Pure Capitalism” open currency system the USA had prior to the Federal Reserve Act of 1913. Decentralized exchanges could also emerge as a more popular alternative to “hackable” centralized exchanges and disrupt the space even further.