The study found that banks mostly held volatile cryptocurrencies and had little exposure to stablecoins.
While one of the goals of cryptocurrencies is to render traditional banking obsolete, banks as a financial institution still play a critical role in the advent and adoption of the emerging crypto economy in two ways.
Firstly, outside of a physical cash exchange for cryptocurrency, banks provide the fiat bridges to cryptocurrency markets. Without them, the influx of capital and interest in the blockchain industry would be nowhere near the magnitude it is today.
Secondly, many of the world’s leading banks are researching and, in some cases, developing their own central bank digital currencies, or CBDCs, which aim to secure hegemony in the digital asset space largely in response to the growth of the crypto economy.
As digital finance evolves before our eyes, banks as a commonplace financial organization may change drastically in their role and purpose in society — even if it leads to obsolescence.
- If Credit Suisse collapses, will it bring more volatility to the crypto market? Watch The Market Report
On this week’s episode of The Market Report, Cointelegraph’s resident experts discuss the Credit Suisse situation and what impact it would have on the cryptocurrency market if it did collapse.2541
Are TradFi and DeFi converging, moving toward a middle ground that includes tokenized assets, interoperability and regulation?4470
Mastercard’s new product allows banks to find and prevent fraud on crypto merchant platforms within its network.2307
Bitcoin has plenty of obstacles to weather in the current macro storm as two-year weekly close lows remain inches away.11423
Bitcoin price action could include a fresh trip to $20,500 but, beyond that, the overall trend remains firmly down for traders.20760
Cryptocurrencies spur financial inclusion, protect against inflation and enhance the global economy despite the recession.203
The crypto industry is coming to save the troubled “Euro-Skulptur” monument in Frankfurt after traditional banks refused to support the symbol of eurozone decision-making.2155
The project will connect SWIFT’s network to nearly every blockchain to allow traditional finance players access to digital and traditional assets on one network.6600
Vietnam has the highest crypto adoption rate in the world. There are numerous factors driving the trend.3200
Large financial institutions are getting involved in digital assets by investing capital, time and effort into custody technology solutions.3264
Earlier this week, the Israeli crypto exchange became the first crypto firm in the country to receive a license enabling it to work with local banks.2107
Apart from USDC support, FV Bank also plans to launch a custody service in Q4 2022, targeting major coins like Bitcoin and Ethereum.6730
Decentralized finance still has a way to go before it can attract institutional capital. Meanwhile, Fireblocks has become a 9-figure revenue-generating company.2051
Iran has decided to legalize the use of crypto in cross-border payments, which could impact how some countries view crypto.4376