All major banks that introduce cryptocurrencies

Crypto world as an opportunity for banks and financial service providers

Custody services and other services as new offers

Crypto currencies are still fraught with unanswered questions - interested investors do not easily find access to providers of exchanges on which they can exchange traditional currencies for crypto money. In addition, the technical requirements for a secure wallet must be created. In particular, the loss of the private key must be prevented, as this entails the total loss of the crypto money connected to the wallet. The prevention of cyber attacks is a key aspect here.

Banks can provide security at this point. You should deal with cryptocurrencies in your own interest, otherwise FinTecs that are already in the starting blocks will take market share away from you. The established institutes have the great advantage here because they are very familiar with the regulatory requirements such as CRR (Capital Requirements Regulation), PSD2 (Payment Service Directive) or AML5 (Money Laundering Directive) and the bureaucracy of BaFIN, which in turn is a high one for FinTec companies Represents hurdle.

Digital currencies are opening up new business areas: banks can add new services to their portfolio for end consumers and retailers, such as custody business. It includes the safekeeping, administration and protection of crypto values ‚Äč‚Äčthat serve as a means of payment. Banks then manage wallets and transactions for their customers, generate and save the asymmetrical key pairs, offer a connection to crypto exchange platforms or manage their own private crypto currencies.

In addition to cash transactions with credit and direct debits, cashless payments with electronic payment transactions, there are then crypto services. Credit cards for cryptocurrencies are already available today, and crypto ATMs can be a further step.

Blockchain technology can not only be used for cryptocurrencies, but also for smart contracts, the processing of contracts using algorithms without a central administrative entity. In such smart contracts z. B. the triggering of payments can be regulated if certain conditions have been met. In this way, institutes could offer their corporate customers services that support the digitization of customers' business processes.

Banks should sound out their potential, engage in lobbying work, influence regulations and also participate in private-sector activities. Because it can be assumed with a probability bordering on certainty that cryptocurrencies will expand the existing systems of end customers, retailers, industry but also the banks themselves.