The world of Bitcoin is a perplexing one for anybody new to this currency. Outsiders know that there are investors making profits with these cryptocurrencies, and that many proclaim it to be the future of banking.
But, conflicting perspectives and policies create doubt. This is a legal tender, but only in some specific countries, and there’s not any international regulator. It is no surprise that it has taken so long to make crypto-friendly banks.
The demand for a more crypto-friendly banking process is apparent when we consider the attitudes of many leading nations.
There are concerns over the long-term worth of Bitcoin and other currencies in much the EU, as well as the US, Canada and Australia. Many nations are also concerned about the security risks of the ICO system.
The barriers between banks and cryptocurrency consumers are apparent. There’s:
- a lack of trust in the machine
- a lack of comprehension of the technology involved
- a lack of respect for cryptocurrency users and investors.
Why are crypto-friendly banks therefore vital for the future of this sector?
Crypto-friendly banks aren’t the enemy here. In reality, they are the middle-ground option between the old-fashioned banking system and contemporary Bitcoin options.
Financial ministries do not anticipate the cryptocurrency system because of the lack of regulation and structure. The idea that Bitcoin would eliminate the need for banks scared them. A well-designed crypto-friendly bank should offer a compromise in which everybody is satisfied. Still, there is still plenty of resistance.
Some countries are more receptive to the possibility of cryptocurrencies and crypto-banking than others.
In reality, back in January, The Swiss Economics Minister stated that Switzerland wanted to function as”crypto-nation”.
This meant a more open, friendly attitude to crypto-banking than that of other nations. Instead of focusing on security issues along with the potentially volatile nature of those monies, they want to invite companies and investors to Switzerland. Many start-ups have since based themselves in the nation.
Switzerland has the trust in the system, understanding of this technology and the esteem of consumers to make this work.
Whale watching becomes mandatory.
Greater regulation and improved options for the regular users can also be vital when attempting to fight all those whales in the cryptocurrency ocean. These whales are a huge influence on the market, using a little handful of consumers owning as much as 40%.
Crashes and fluctuations are frequently the results of the transactions. Thus, wider adoption of cryptocurrency banking and availability for the average user could be an edge.
The further we can restrict the influence of whales, the greater stability there is in the computer system. The more stable the system, the greater the chance of countries embracing it in the future.
There’s not any doubt that too many significant banks and leading financial powers are a direct weight here. Their inability to see beyond the dangers and adopt the innovations stalls any momentum for cryptobanking as a world-wide system.
These brand new banking start-ups supply the solution to get a more demanding, understanding system. Here users finally feel like they have a valid form of cryptocurrency and an opportunity to build on investments.
These banks are a compromise between tradition and invention. This is the very best way for cryptocurrency to obtain some stability and work towards mass-adoption. Users simply need more businesses and countries to register.