It feels like there has been an awakening within the crypto community. Suddenly, many people and businesses have begun to show interest in digital assets. Perhaps, the sudden interest can be attributed to the Covid-19 pandemic that rocked the world. It is even more interesting to see banks trying to align their operations with the rising interest in cryptocurrency. This was not the case some years ago when traditional banks were at the forefront of the fight against crypto. Well, they say change is constant, and we have seen that with some banks rescinding on their earlier anti-crypto statements.
In a recent development, the COO and president of Goldman Sachs, John Waldron reached out to crypto regulators. This was due to the increased demand for Bitcoin at his bank. According to Reuters, John said there was an increase in Bitcoin demand, and the bank was evaluating its possibilities.
Goldman Sachs used to have a trading desk for crypto that was ultimately suspended. Most recently, this has been re-launched. The crypto trading desk is intended to facilitate futures trading for cryptocurrency, particularly Bitcoin.
Goldman believes in the future of digital currency and is looking for safe ways to deploy crypto investments. The bank seems to be making a splash into this emerging space, by identifying ways they can stay compliant while adopting digital currency transactions.
John believes the increase in online commerce as a result of the pandemic will increase the use of cryptocurrency.
Bitcoin Price – New All-Time High
Bitcoin is the largest cryptocurrency by market capitalization. At the time of this article, Bitcoin is currently trading at $60,193. Just 8 hours ago, Bitcoin cracked a new all-time high of $60,445. Bitcoin has now surged ~ 94% YTD and ~ 624% over the last year.
The Traditional Banking System And Crypto
In times past, the traditional banking system has shown resistance to the adoption of cryptocurrency. This was the case for several reasons, including their belief that it is an unsafe bubble to invest in. Interestingly, there are several flaws and irregularities within the traditional banking system that crypto adoption can address. For instance, banking should not be stressful, transaction processes should not be so slow, and fees should not be egregious.
We should also not forget the fraudulent practices that happen with the traditional banking system and the difficulty to access loans. There are so many irregularities within the banking and finance system, and crypto adoption can solve some of them.
One would have expected the banks to readily adopt crypto when it was introduced a decade ago. However, it is still worthy of note that some banks have begun to see the benefits of cryptocurrency.
The financial sector needs all the help it can get with FinTech, and crypto adoption is a perfect venture in this digital age.
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