CRYP­TOCUR­RENCY

Money Magazine Australia - - BANKING OUTLOOK - Raj Wad­hera, chief mar­ket­ing of­fi­cer, Cryp­topia

QWHAT WILL BE CRYP­TOCUR­RENCY’S ROLE IN BANK­ING?

Cryp­tocur­rency is here to stay. While many ar­gue it’s still in its early adop­tion phase both in Aus­tralia and over­seas, it is one of the world’s most at­trac­tive growth mar­kets and will even­tu­ally be­come an­other univer­sal pay­ments sys­tem. Other pay­ment for­mats won’t dis­ap­pear, in the same way credit cards didn’t re­place cash. In­stead, it’s a new op­tion for in­di­vid­u­als and busi­nesses to trans­act cur­rency. For ex­am­ple, in­vestors can pur­chase to­kens to fund a $300 mil­lion de­vel­op­ment on Great Kep­pel Is­land.

Tra­di­tional banks and cryp­tocur­rency ex­changes have the op­por­tu­nity to co­ex­ist. Banks should not treat cryp­tocur­rency as a fad but re­alise its po­ten­tial to de­velop new ser­vices. One ex­am­ple is to use coins to buy, sell and trade com­modi­ties by back­ing these with real as­sets. They have an ad­van­tage in that the pub­lic is al­ready fa­mil­iar with them, and re­main­ing stag­nant means risk­ing fall­ing be­hind crypto ex­changes as go-to plat­forms for con­sumers to trans­act cryp­tocur­ren­cies.

The pi­o­neer­ing crypto ex­changes of­fer con­ve­nience, sta­bil­ity and high stan­dards of trans­parency and are there­fore likely to ben­e­fit from early adopters’ word of mouth when adop­tion ac­cel­er­ates.

Newspapers in English

Newspapers from Australia

© PressReader. All rights reserved.