European Banks Bullish On Bitcoin
Vontobel and Falcon Bank - both private Swiss banks - are among the lenders who work on crypto-currency-based investments for customers. Germany's Fidor Bank and Liechtenstein Bank Frick supplies similar services.
"There are risks involved, but there are also really great opportunities," said Edie Wögerer, CEO of Bank Frick, Financial Times. "We know what to do in a security perspective, so it's a great opportunity for banks like us."
He continued to notice that his counterparts in major banks are "afraid of crypto curves" because they do not understand them, they feel threatened. "
Oliver Bussmann, president of the Crypto Valley Association in Switzerland Canton Zug near Zurich, noted that large banks out of the field in this respect had opened the door for smaller competitors.
"More and more bankers come in," he told the Financial Times.
Many banks are worried about the volatility of the price - therefore, the number of British and American banks has blocked crypto-currency purchases on credit cards.
"There may be a need for resolute counterfeiting measures," Yves Mersch, member of the board of the European Central Bank, warned last week.
But the small banks and their leadership like Mr. Wögerer remain worried.
"We hear these international statements," he said, comparing the current furor to the early days of the internet, many of which are considered a threat. "If it gets regulated and it will be regulated, we'll already adhere to it," he said.
Not sure whether I should be worried or joyful that some banks are starting to explore the crypto market. As long as they are not conquering it I will be another step to mainstream adoption, that is where we all are aiming for.
But if they just use their power and connection they will get the market regulated only in their favor, leaving everybody else behind.
Not sure what to think about it myself, but good to be informed about that development, thank you!
Good question, but at least some banks "believe" in bitcoin as the future.
and that is actually a good thing. Exiting times are ahead
Switzerland’s Vontobel Holding AG and Falcon Private Bank, both says the cryptocurrency’s best days are ahead of it.The imminent launch of bitcoin futures will trigger a flurry of new product launches in the digital currency that are likely to push the price even higher, according to the private banks. Cboe Global Markets Inc. debuts the first bitcoin-futures product on Sunday, while CME Group Inc., the world’s largest exchange owner, will start offering a similar product by the end of the year
HOPP SCHWEIZ.
This news, coupled with the Arizona Senate passing a bill allowing tax payments in crypto, signals to me that it's here to stay. There'll still be some lumps along the way - and messy regulations - but at least folks are no longer trying to drive the value to 0. I would also say that some regulation may not be a bad thing in the long run.
Cryptocurrency is perfect fit for Swiss banks.
It will be interesting to see what happens when banks set up their crypto trading desks, particularly what strategy they adopt.
Under the Volcker rule, banks can no longer engage in proprietary trading (speculative). However, I'm unsure if this will apply to this new, unregulated crypto asset class.
If any regulatory experts are lurking, would be keen to get your view!
Nice, welcome!
nice post sir.
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Be rest assured cryptocuerencies will disrupt banks. Banks in 10 years will not look the same. It would be naive in my opinion to think they could co-exist in the same market and both win.
If i can store my wealth all in a crypto wallet that that gives me full control of my money. and if i can seemlesly spend my crypto. Why would I need a bank. Where someone else control my money and what I can purchase.
I see the logical thing is people wont need banks for some if their services. They will still be useful for giving credit and other comercial financial products however interms of personal finance. They will be disrupted.
Maybe I'm just ignorent but if some one know what banks can do that cryptocuerencies cant do better please let me know
Each and every day it seems that we are hearing about more companies that are moving to the acceptance of cryptocurrencies for payment. Even governments and now banks are throwing their hats into the arena. I have been voicing my curiosity lately about how these companies will beal with the volatility of the market and deal with potential dips that cost them millions of dollars.I think it is now becoming more and more clear as we see banks and governments get involved that they know one thing. BITCOIN is king. These banks are all about risk analysis and are in no way willing to jump into something without being sure they will be profitable. I think that based on their analysis they have come the same realization as many of us have. There is no where for bitcoin to go but up in the long run. They see $$$$ by getting involved in this. My only question now is: What do they have planned for the Bitcoin once they have it? Will they be hodlers? If so how long until banks and government have acquired the majority that is out there? Wh know that there will only ever be a set amount of Bitcoin and if Banks and governments become the whales then what does that mean for the value and for the market as a whole? Supply and Demand... Keep your eyes open.