The banking system rules out the crypto market threat

xuanling11
Coinmonks
Published in
3 min readJul 26, 2022

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Photo by Miquel Parera on Unsplash

There’s been a lot of “how-to” advice floating around the crypto space regarding what digital coins should and shouldn’t do. However, it’s not just the newest versions of Bitcoin or Ethereum that need to be updated; institutional investors looking to reduce or eliminate their exposed capital position have also seen an alarming increase in digital currencies. Many of these initiatives have centered around the banking system, which has long been at odds with digital currency adoption. Citizens of the world know that money is power — especially regarding financial institutions. That being said, we also know the threat posed by centralized financial organizations is only increasing. As globalization and blockchain adoption continue to expand, there will be new challenges for existing financial institutions to address efficiently and effectively. In this post, we look at what regulations currently exist governing crypto-based payments, potential solutions for managing this threat, and solutions for combating it.

What is a Crypto-Banking System?

A cryptocurrency-based banking system is a decentralized and distributed network that provides various payment options, such as financial services, insurance coverage, and virtual goods. Digital currencies are not linked to any particular central authority but are instead stored and managed exclusively within a decentralized network of computers.

How to not ban a Crypto Currency Bank?

Unfortunately, the best way to avoid being a scam, Ponzi scheme, or money laundering is to fully understand and address the growing crypto-based banking system. As most people now realize, the world of financial services is not one-internet, one-too-many-banks. Rather, it is a complex web of interconnected financial assets, institutions, and individuals. KYC is likely a requirement to crypto banks even though crypto is a decentralized instrument. Regulations will further assist crypto integration into the existing banking system.

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