How Banks Tried to Kill Crypto and Ended up Embracing It?

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In 2014, we heard of a few regulators who were trying to control Bitcoin in New York. Some executives based in top banks at Wall Street tried to sow some doubts about digital currency when they heard about legitimizing them. They felt that this could hamper the finance industry. The very same year, during the WEF Conference at Davos, the CEO of JPMorgan, Jamie Dimon, termed Bitcoin to be a terrible thing having the value that can be used for illegitimate things. They talked about the various violations that can take place using Bitcoin while placing the Iran sanctions. Even the finance ministry in the country warned about Bitcoin asking people to worry about the Bitcoin rise in the market. However, all efforts seemed to fail as the Department of Financial Services in New York was seen issuing licenses for the Bitcoin business in the coming year. You can even explore this topic on sites like – cryptocurrency investment.

The rise of Bitcoin Users

In 2015, the bankers felt the rise of Bitcoin and its use in the market. So far, they found that there are no fewer than 75 Million users of digital currency, which was not the case earlier. That’s not all; even there other digital currencies on the rise apart. Globally today, we have more than 200 million users of digital currency claims the reports of the popular portal – crypto.com. A majority of people feel that sooner or later, people need to deal with assets in digital format. Thomas Olsen, the critical person from Bain & Company, has talked about Bitcoin and other digital currencies a lot and feels that it will matter a lot soon. So, with all said and done, the acceptability of Bitcoin and other digital currencies is on the rise in the current market.

Banks and Virtual Currency

We saw the banks being the biggest enemy of Bitcoin and other digital currencies. The reasons were evident as they knew that these currencies were taking away their business, leaving them feeling like a deprived community in the market. Now, we see things changing. They have realized that their hostility will not be going to lead you to any beneficial solution. With this, the banking industry is now catching up with Bitcoin and other digital currencies. It would be fair to see that they are in a race in the banking domain to attract their clients, giving them the digital currency element. The reasons are apparent, and they want to compete in this new market and benefit from it. However, their approach towards the digital coin has been two-pronged. First, they are experimenting with it, allowing the lobbyist and regulators to rule the world and make things in favour of banks.

The Bank Offerings

Some banks are now offering the option to invest in digital currency, particularly to their wealthy clients. The others in the market are now checking the pros and cons of the Bitcoin trade.  The top groups like JP Morgan also have similar ventures for its clients as it is now embarking on its digital currency. The banking industry is now talking about digital coins and investing in them, which was not earlier. Instead of preventing their clients from thinking about digital currencies, they want to offer something worthy in this domain. However, their initial reluctance towards Bitcoin and other digital currency, in general, seemed to have cost them a lot. Thus, we see an alternative financial system is generated and promoted around the conventional banking domain. Several digital currency-based start-up companies are now offering loans and credit cards to procure Bitcoin and other virtual currencies. The reasons are evident as the banking sector are seen how people and different businesses all across the globe are now accepting digital currencies at a faster pace. Every government now is seen getting indulged in the discussion about digital currencies. We have examples like El Salvador that has made Bitcoin their legal tender. The FR (Federal Reserve) is also now following the same footsteps as central banks worldwide when it comes to evaluating the digital currency of their own.

Wrapping up

The way traditional banking used to work seems to have come to a point when they plan to invest in digital currencies. Now, they see how digital currencies have made their way in the market, and thus they have no option but to leverage. The reason is apparent, so the banks are now quick in accepting Bitcoin and digital currencies.

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