Why banks need to start offering cryptocurrency wallets


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With the recent surge in value of cryptocurrencies, ordinary people and traditional investment firms are paying more attention to the space. The market cap of cryptocurrencies has grown from less than $30 billion in March 2017 to over $110 billion in June 2017, and this is just the beginning. Cryptocurrencies are quickly becoming a new global market for assets, similar to stocks, bonds, mutual funds, and government backed-currencies.

But the immediate settlement of currency transfer on blockchains (such as Bitcoin and Etherium) is a double-edged sword. On the one hand, it’s incredibly efficient at money movement; on the other, it allows bad players to transfer your cryotcurrency with the same speed. And if the wrong person gets unauthorized access to your cryptocurrency holdings and transfers the currencies to their own wallet, there will be no getting it back.

As a result, among new investors in the space, there is a concern about giving money to new, unproven, and non-regulated online-only cryptocurrency wallet providers. And that opens up an opportunity for traditional banks. You already trust them with your life savings, so you will likely trust them with your cryptocurrency holdings.

It would take an enormous investment for banks to move into this space. But here are some reasons they should consider it:

They can address a real pain point for their customers: Cryptocurrency investors are concerned about trusting recently established organizations to hold their assets. Banks are reliable alternatives because people trust them. Banks entering this space will solve a real financial problem for their customers and will deepen and reinforce their relationship.

They will stay relevant: Cryptocurrencies such as Bitcoin…

Sasha Harriet

Sasha Harriet

As content editor, I get to do what I love everyday. Tweet, share and promote the best content our tools find on a daily basis.

I have a crazy passion for #music, #celebrity #news & #fashion! I'm always out and about on Twitter.
Sasha Harriet

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