CRYPTOCURRENCY

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.