What Has Bitcoin Done for Banking?

What Has Bitcoin Done for Banking?

8. Potential New Business?

The year 2018 and bitcoin's tenth marked a turning point in how banks approach cryptocurrencies: some banks have begun building up institutional know-how. Some private banks are accepting cash from those grown rich from trading crypto. The next step would be for banks to accept cryptocurrencies – or digital assets – for storage and investment.

The potential new business areas for banks are overwhelming. The fourth industrial revolution with the advance of digitization is in its infancy. Digital currencies will become common property. Banks will scramble to secure their position as intermediaries and tap new revenue streams.

9. Huge Opportunity for Client Advisers

Bitcoin's wild ride has tempted many a wealthy private banking client. Client advisers are expected to explain what the literally thousands of cryptocurrencies are all about, what an ICO is, and whether an investment is worthwhile.

For private banks aiming at the most demanding segment of clients, bitcoin represents a new «touchpoint» with clients – another opportunity to talk to clients, demonstrate knowledge, and impart advice. Private banks actually doing business in cryptocurrencies remain a rarity.

10. Finance Centers Duke It Out

The surge in tokens spawned by bitcoin has added a twist to the heated competition between financial havens like Switzerland and Singapore. Both would like to attract crypto providers, with regulators and banks scrambling to understand what the implications are. Smaller centers like Liechtenstein and Gibralter have forged ahead, but likely lack the critical scale to compete globally.