Small Banks in Europe say Big Banks are losing on opportunities with virtual currencies
Feb 15, 2018 Posted / 7183 Views
Reports have been flooding the media that large banks in Europe are denying and not backing the cryptocurrency investments stating that the market is largely volatile. Many large banks around the globe slowly started announcing that they are barring the credit card purchase of cryptocurrencies. However now the small banks in Europe in countries like Switzerland, Germany and Liechtenstein are now backing the virtual currencies. The banks in these countries are offering their clients opportunities to be part of the digital currency revolution.
Small banks in Europe state that cryptocurrencies have lot to offer be it moneycontrol, freedom or anonymity. However, on the other end major banks are refusing crypto-related transactions, smaller institutions are of the completely opposite view. As per the reports of Financial Times, Swiss private banks Vontobel and Falcon Bank, as well as Fidor Bank in Germany and Bank Frick in Liechtenstein, have rather embraced the cryptocurrency industry with open mind and offering a range of crypto services.
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Edi Wögerer, who is the chief executive of Bank Frick, had this to say:
“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.”
Wögerer appended to the common talks that bigger institutions see virtual currencies as a risky factors to their well-established status quo. He said that most of the larger banks fear the power and authority cryptos can bring in and stated “because they don’t understand them, they feel threatened”.
The attractiveness of virtual currencies is irrefutable. President of the Crypto Valley Association in Switzerland, Oliver Bussmann, remarked that “more and more bankers are coming in,” hoping to capitalize on the lucrative gap left by their larger counterparts.
Bank Frick has started a new service to its customers, it is offering advisory support for startups that are involved with ICOs, and they even monitor investors. ICOs are mostly seen in dilemma and there is always a sword of fraud hanging over them. However, Wögerer stated that these services are in “huge demand”, but the firm is “very selective”, having worked with only 10 ICOs so far.
In their proposal to embrace crypto, the bank also help out investor access to crypto exchanges, offers a crypto-tracker fund and keeps a hard copy of coin codes safe in their vault.
The given trend supports a forecast by Bitcoin expert, Andreas Antonopoulos, who stated that big banks will ultimately lose ground to innovative fintech platforms and smaller banks, who are more willing to embrace open-access, network-centric cryptocurrency. This approach will help them tap into the unbanked market, which includes over 4 billion people.
Even though global institutions aren’t in favor of the digital financial future, these banks aren’t concerned. Wögerer added:
“We hear these international statements. If it gets regulated, and it will get regulated, we will already comply with it.”
These smaller banks offer a range of crypto services to their clients. Vontobel has a Bitcoin tracker, and also has crypto-betting facilities. It will interesting to see what stance big banks will take in future if the small banks continue to grow with huge potentials of cryptocurrencies.
Applancer is an open platform for discussion on all things like Blockchain , Cryptocurrency and Ico news updates. As such, the opinions expressed in this article are the author's own and do not necessarily reflect the view of Applancer .
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