Big Banks are Starting to Enter the Cryptocurrency and Blockchain Craze
When Bitcoin began in 2009 every major investment bank said it was a bust and that it would not be wise to invest in it. Even financial guru Warren Buffett said it was a massive risk and compared the cryptocurrency to a poisoned square. Today, big banks are starting to enter the cryptocurrency and blockchain craze.
Warren Buffett will continue to speak ill against cryptocurrencies, but what would you expect from a man who doesn’t even have an email account. But, cryptocurrency and blockchain are the new techs on the block and the new investment strategy. It’s their time and big banks are beginning to get on board.
The traditional way of making money and invest in assets has changed and many huge financial firms recognize it. Goldman Sachs, JP Morgan, and many other huge players in the financial game have created departments based entirely on predicting cryptocurrency.
Just look at what Steve Chiavarone, portfolio manager at Federated Investors, just did. He made a statement in which he declared that blockchain will lead the way and eventually create the fourth industrial revolution.
Federated Investors has started to promote the use of blockchain technology to their big conglomerate clients. They predict that any company that invests in quality blockchain projects will have almost immediate returns.
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This is based on the fact that major corporations overseas have already begun securing their company and their assets using blockchain. Even the governments of certain countries, for example, Mexico, have begun to test out blockchain as a way to decrease corruption and make monetary transactions safer.
Today, Big banks are investing in Bitcoin to study and analyze blockchain technology. This idea is shared by many and maybe one of the reasons why one of the biggest American banks is entering into the crypto game strong.
Bank of America has made several statements declaring that they’re investing the most in blockchain and crypto. As of today, Bank of America has possessed the most live patents in the blockchain space. Bank of America clearly sees the potential that the technology has, and once it is accepted by the mainstream corporate culture they will have the most to gain.
Another important bank in the United States, Citigroup has launched a number of trials to see how efficiently the technology tracks down credit default swaps. The results were overwhelmingly positive.
The success in this trial will eventually lead to its use in other forms of banking. Mainly to take care of assets and trade. The only thing that will be missing is to set up a framework based on how technology should be used.
American banks are not the only ones who have predicted that blockchain is the future. In the international banking sector, many banks have invested heavily in technology and, for the most part, have skipped the obstacles that the United States has imposed on cryptocurrency and blockchain.
The Bank of England has been one of the most important players in embracing the power that the technology of blockchain has to offer. In 2016 they launched a blockchain accelerator and for some time even considered launching their own coin.
Hong Kong and UK based bank HSBC and Germany’s Deutsche Bank made an important deal with technology giant IBM last year. The goal of the deal is to help the banks rely less on paper and to use blockchain to protect their international trade transactions.
Switzerland which has quickly become a haven for financial technology companies, and the best place to launch an ICO, has many important banks investing in cryptocurrencies and blockchain altogether.
One of Switzerland’s most important banks worldwide, UBS been heavily promoting blockchain for a number of years. UBS has been a key component in introducing Blockchain and cryptocurrencies to other major banks and foreign conglomerates.
Finally, huge Spanish banking giant BBVA, made a considerate investment in the cryptocurrency trading platform Coinbase as it plans its next move involving the use of blockchain. The future is cryptocurrency and blockchain, banks and financial investments that don’t invest in either will stay behind.
I hope you’ve found this article on blockchain technology and banks to be helpful. For more information, or for assistance in starting a business offshore, please contact us HERE.
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