How banks can play in the booming crypto space

How banks can play in the booming crypto space

Cryptocurrencies are enjoying a boost in mainstream popularity and acceptance. Once spurned by serious investors as too unstable to trust, or even as inherently worthless, crypto is finding favour with governments and financial institutions as they seek


to explore a world of payments and transactions outside of the traditional banking system. 

There are a number of drivers behind this turnaround from pariah status to legitimacy. For one, crypto in general and leading currency Bitcoin in particular have had a good pandemic. As economies locked down in early 2020, predictions that Bitcoin’s time


had arrived as a safe investment haven looked ill-founded as its value crashed alongside that of other assets and markets. Then it bounced back, much faster than regular currencies, and has remained fairly stable, shedding much of its reputation for volatility


along the way. 

Along with this phase of steady success has come greater awareness of the virtues of crypto outside of the clique of risk takers and serial early adopters that have been its main backers to date. Regular citizens are starting to buy into it, especially in


developing regions where traditional banking is often not available or not trusted, places like Africa, Asia and South America. Central banks