The phrase “be your own bank” is often heard in the Bitcoin community, which refers to the fact that the decentralized network allows users to protect their holdings without third-party intervention. However, in this ever-evolving world, there is still room for traditional banking that refuses to die.
As part of the evolution that the financial system is experiencing today is one of the most notable trends the acceptance of Bitcoin through the banksthat provide services related to peer-to-peer digital currencies.
It is curious that while the Bitcoin ecosystem promotes the idea of eliminating traditional financial intermediaries such as banks; Now these same banking institutions are shifting their focus to the pioneering cryptocurrency.
It also comes with the increasing acceptance of Bitcoin by banks the possibility that these institutions and electronic money can coexist and help build a fairer and more efficient financial system.
Banks are shifting their focus to Bitcoin as the crypto asset gains more acceptance. Also because of the further development of its technology and because its customers demand it.
Likewise, banks are adopting Bitcoin because greater regulatory clarity has been achieved for the cryptocurrency industry, at least in various parts of the world.
With clearer legal framework conditions Banks and investors feel more comfortable entering this space to offer services in Bitcoin. such as the custody of digital assets and the buying and selling of cryptocurrencies.
With this in mind, banks are beginning to recognize the value and usefulness of Bitcoin as a means of payment and store of value. They have seen it gain traction in various sectors, leading to a change in their perception.
Banks are losing customers as Bitcoin adoption increases
The desire of banks to offer services using Bitcoin suggests that this trend is irreversible. The keys behind it suggest that traditional financial institutions must change to avoid disappearing.
The data suggests that if they do not evolve in line with user demand, The loss of customers at banks will continue to accelerate the whole world.
Accordingly The report According to PwC’s 2020 Global Banking Consumer Study, the churn rate of bank customers increased by 4% worldwide.
The loss of banking customers is most pronounced in the young and urban user segment: 41% of Millennials are considering other options.
Other study This is shown by a study by the consulting firm Accenture The biggest opportunities for traditional banking lie in exploring new frontiers and offer integrated services.
All of this underlines the importance of banks adapting to the changing needs and expectations of customers, especially the new generation, in order not to disappear.
Banks that choose to offer services using Bitcoin usually cite the fact that the digital currency is actually gaining popularity. They therefore need to adapt to their customers’ preferences and offer cryptocurrency-related services.
In fact, the Spanish Banco marks A&G, which has launched an investment fund in Bitcoin and Ether, the Ethereum currency growing acceptance of cryptocurrencies by established financial institutionsnot only in Spain, but also in the European Union and other parts of the world.
Unlike the past, it was found that more than 90% of large investors have an interest in Bitcoin and other cryptocurrencies. And 90% of them want “the support of a large traditional financial institution” to manage funds in crypto assets.
It is precisely at this point that banks have an important role to play, according to a Investigation from the firm KPMG entitled “Guidelines for Cryptocurrency Banking”.
The report observes how since 2020 The number of companies interested in BTC is increasing. Therefore, he recommends to bankers: “It is time for banks to deal with cryptoasset customers.”
More services with Bitcoin in banking, is a new financial system born?
In the Bitcoin ecosystem, not everyone likes the fact that banks offer services with Bitcoin and other cryptocurrencies. Many believe that banks’ interest in the groundbreaking digital currency cannot be supported now when Bitcoin promotes the idea of getting rid of traditional financial intermediaries.
Others believe that institutional adoption is positive for the Bitcoin ecosystem as it helps it gain legitimacy and acceptance in the financial world. However, there are also those who view this with suspicion, as banks could use their influence to restrict the freedom and inherent properties of Bitcoin.
Distrust of banks is a legitimate behavior for Bitcoin defenders. Some warn that banks and their centralized systems are open to manipulation and abuse.
It is accused Banks are responsible for financial collapses and devaluations of fiat currencies. For this reason, they prefer the financial decentralization that Bitcoin offers and believe it must be defended. Therefore, it is better to keep the digital asset away from banks.
However, due to the change that is also taking place in the global financial system You can see another way coming and that is collaboration, as banks and cryptocurrencies can coexist and help build a fairer and more efficient financial system.
The more banks offer services, the greater the opportunity Traditional financial institutions can introduce electronic cash and its technology to jointly help users and improve the existing financial system.
Against this background, alliances are emerging in which banks integrate their systems with exchanges and other companies that have extensive experience with Bitcoin services. It is also evident that banks will integrate executives and people with greater knowledge into the blockchain ecosystem.
All of this will continue to show that banks are adapting to new technological trends and staying at the forefront of the financial industry, with Bitcoin being their greatest ally. In addition, the Bitcoin network with its characteristic decentralization will continue to exist, as an option for those who do not want to participate in the pre-built system.