The traditional banking system could consider adapting to the world of cryptocurrencies based on its business strategy and the needs of its clients. Here are some reasons why the traditional banking system might consider adapting to cryptocurrencies :

Customer Demand: As cryptocurrencies gain popularity and acceptance, some bank customers may express an interest in using cryptocurrency for certain transactions or as a form of investment. To meet customer needs and expectations, banks could consider incorporating cryptocurrency services into their offerings.

Financial Innovation : The world of cryptocurrencies has introduced innovative technologies, such as the blockchain, that have the potential to improve the efficiency and security of financial transactions. Banks could consider adopting these technologies to improve their own operations and internal processes.

Competition with cryptocurrency companies: Cryptocurrency companies are competing with banks in some areas, such as cross-border payments and decentralized financial services. To stay competitive, banks could consider adapting to the world of cryptocurrencies so they don’t get left behind in an evolving market.

Revenue diversification: The addition of cryptocurrency services could offer a new source of revenue for banks. For example, they could generate income through cryptocurrency transaction fees, custody services, or the development of new cryptocurrency-based financial products.

However, it is also important to note that the adoption of cryptocurrencies by the traditional banking system can bring challenges and risks , such as the volatility of cryptocurrency prices, the lack of clear regulation in some countries, and security risks. associated with the storage and management of digital assets.

Fran Mayora, CFO of Koibanx -a leading company in financial tokenization using blockchain technology- gives it as a fact: “Today it is more evident than ever that cryptocurrencies and the traditional banking system are related, they already are. The crypto participants are operating in the traditional banking system and the traditional banking system is operating in the crypto ecosystem.”

According to Martín González, CEO and Co-Founder of BAG -a blockchain technology company that offers tools specially designed for art and culture- he also affirms that there are already banks that are working in some way with the crypto world: ” Everything that is FIAT/Crypto ramp and support to Exchanges is happening to a lesser or greater extent in different countries. There are banks also with significant investments in the crypto sector and others that are developing their own platforms. It is a fact and even more so when CBDCs are deployed”.

Adaptation is possible and may even be seen as necessary. For González, the banks also understand it. “It is not just a feature or an opportunity but it will be a massive reality in a few years. The interest in CBDCs from many states arouses the interest of the banking system in crypto instruments ,” he stated. “Crypto can survive without banks, but certainly working with them would speed up adoption a lot, then we can discuss whether someone likes it more or less as a matter of principle . “

In this sense, the CFO of Koibanx also recognizes that cryptocurrencies can continue without banks “they need it mainly if they want to have a link to the real economy. What the crypto ecosystem itself has is a technological innovation, but if it is not applied to the real economy, it remains content, let’s say, in an experiment. What we are seeing is precisely that in order to operate on the real economy and to generate a benefit for the population, it has to be integrated with the traditional banking system”, says Mayora .

For Ramiro Raposo, Country Manager of Bitwage -the pioneer platform for payment of fees in cryptocurrencies and digital dollars most chosen by workers, freelancers and service exporters-, there is no doubt about the possibility of synergy between both parties. “In fact today, many stablecoins depend on banks, such as USDC hosting funds in them. But as Michael Saylor says, the battle is not against the banks, but to create a more transparent system” , he explained.

However, he also made reference to what happened to Silicon Valley Bank and other entities in recent weeks: “It was quite horrifying to see a bank that was always known for its incomparable management collapse overnight. He took us by surprise, but at the same time we are not surprised, since we all know that the banking system has always been corrupt. Although for now the system is necessary, for this very reason, Bitcoin was created, and for this reason today thousands of people in the world are moving their money to the blockchain”.

For his part, Guillermo Escudero, Regional Manager of CryptoMarket -cryptocurrency exchange platform-, also commented on what happened with the SVB: “It is one more example of how fragile the current monetary and banking systems are. The fractional reserve only makes possible massive fund withdrawals more complex, and the constant increase in interest rates causes the bonds to lose value, except for the final sale of the bond (it is canceled for the nominal total), and in the event of eventual sales of these bonds, the same thing happens with SVB, which lost value by closing that position. Observing the behavior of bitcoin in these situations, its principle of alternative system to banking is ratified”.

 Another scare was given by the USDC stablecoin, when it lost its parity with the dollar. On this, Escudero also offered his point of view: “It makes it clear that all fiat-backed stablecoins see their financial health as highly dependent on private banking, given that if the bank goes bankrupt and does not deliver the funds, the parity is 1:1. it is broken due to impossibility of access to that collateral. And Silicon Valley Bank was not a small bank, nor is Credit Suisse, which creates fragility in some stablecoins, and suggests that the models have room for improvement and it is important to identify the best custodian of that collateral.

 But on the other hand, he believes that today cryptocurrencies also need to work with banks, because Bitcoin’s price allocation and the highest liquidity is given against USDT or USDC, and these projects have their collateral in banks. “This means that if there are problems with these crypto assets, we will surely have a gap and friction in the order books that assign prices in the different world exchanges. Or, as happens in CryptoMarket, we have bitcoin against the Chilean peso, the Argentine peso , real, Colombian peso and Peruvian sol, which is due to the fact that we maintain bank accounts in the different jurisdictions where we operate so that users can deposit or withdraw local pesos and thus be able to buy or sell crypto assets”, he pointed out .


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