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The Impact of Cryptocurrency on Traditional Banking

The Impact of Cryptocurrency on Traditional Banking

With technology reaching new heights, Cryptocurrency is on its way to becoming a popular financial asset throughout the world. Being a popular cryptocurrency, Bitcoin has reached its maximum value with time. Such an expansion in Cryptocurrency accounts for the economic digitization movement. Certain countries have also created their digital currency for achieving this target. Bitiq provides you with the perfect platform to know about bitcoin evolution and cryptocurrency trading.

On the other hand, traditional banking systems, which have persisted for a long time, are uncertain about implementing the concept of digital assets. Latest reports show that about 63% of people in the banking sector view Cryptocurrency with a negative approach due to its risks. According to them, the risk factors associated with cryptos are much more than their advantages. Therefore, the question arises, what is the impact of cryptocurrencies on the usual banking system?

According to many studies, it can be summarized that some of the significant inherent risks posed by digital assets prevent the banks from associating with them. Many regulatory bodies like the OCC are putting efforts to change the viewpoint of banks when it comes to digital assets, reasoning that these assets could optimize the financial realm and trigger a new wave of efficient and revolutionary systems.

The OCC has issued multiple guidelines about how financial bodies can indulge in digital transactions in the recent past. This measure is a hope for the body that external guidelines will assist the banks in becoming more convenient with handling digital assets. The OCC had stated that national and federal financial institutions can now implement mass blockchain technologies for transactions since the process would be rapid without an external agency’s involvement.

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