Most of the times, Banks have been opposed to the increased demand for Cryptocurrencies. In the United Kingdom, the US and South Korea, banks have taken different steps to reduce the exposure to cryptocurrencies. But some banks in Europe are looking forward to giving clients the deserved access to the cryptocurrency market.
Small Banks Friendly Towards Cryptocurrency Investors
There are different banks that have been supporting cryptocurrencies in Europe. Two Swiss private bank, Falcon Bank and Vontobel, are strongly supporting their clients to invest in cryptocurrencies. In Germany, Fidor Bank and Liechtenstein’s Bank are taking similar policies towards crypto-related investors.
This situation shows how divided the banking industry is regarding cryptocurrency investments. While some banks do not allow their customers to purchase cryptocurrencies, other are supporting it.
Bank Frick’s Edi Wogerer says:
“There are risks involved but there are also really big opportunities. We know what to do from a security perspective so this is a big opportunity for banks like us. Bigger banks were ‘scared’ of cryptocurrencies because they do not understand them, they feel threatened.”
Some time ago, a Portuguese Santander branch reversed a decision not to allow bitcoin transfers. Bank have ben preventing users from buying and selling cryptocurrencies. But a Portuguese bank branch has experienced an incredible opposition from its clients. It had to reverse its closed stance towards cryptocurrencies due to the fact that clients wrote a petition saying that the bank was leaving the country outside the world of financial innovation.
This situation was strange, coming from a bank that seemed very opened towards cryptocurrencies. Santander is working with blockchain technology and cryptocurrencies to offer better products and more efficient services.
Ripple Works with Hundreds of Banks
The third cryptocurrency by market capitalization is one of the most used by banks all over the world. It uses a technology very similar to the one used by banks known as Swift. Ripple reduces the cost costs of cross-border transactions among financial institutions.
But the interesting fact is that more than dozen central banks are working with Ripple in order to have enhanced functionalities. Governments and private banks are using these technologies because they have real world application. Cryptocurrencies allowed several businesses, banks, individuals and governments to exchange money efficiently and fast.
Brad Garlinghouse said during an interview that ‘the global payment industry has been ruled by an oligopoly, led by players like JP Morgan and Citi.’
Ripple has partnered with more than hundred private banks that are using Ripple’s products to provide better products and services. Among these banks we find Santander, UniCredit, BBVA, Standard Chartered and many others.
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