THE TRADITIONAL FINANCIAL ORGANIZATIONS SHAKE (Cryptocurrencies)

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The bitcoiner ecosystem is experiencing times of expansion and wide adoption. Even traditional financial organizations begin to value their definitive irruption in the current world.

Thus, banks, investment firms and high-level financial institutions such as the International Monetary Fund (IMF) begin to mark positions and to interfere more clearly in the matter, opening a new phase of institutional adoption that could have significant repercussions on the ecosystem. and its future development.

IMF President Christine Lagarde has had words about cryptoactives on more than one occasion. His most recent opinion was that it is a matter of time before they are regulated globally. According to him, regulatory movements in countries such as China or the United States are not isolated cases, but rather a trend that will become global, especially due to the influence that cryptoactives have gained, and the potential repercussion they can have on the system. global financial "It is clearly a domain where we need international regulation and adequate supervision," he said during an interview offered in February.

Already in October of last year the official had had a deference about cryptocurrencies, underlining the need for central
banks and financial institutions around the world to closely monitor the environment of cryptoactives, emphasizing the urgency of understanding their nature in order to take advantage of in the best way its potential.

In addition, at the beginning of the same month, Lagarde asserted that the IMF should establish a position on the cryptoactive ecosystem, although underlining that these cryptographic instruments are not a real danger to the global economic system, especially for the world's central banks and fiat coins.

However, some banks do not consider the same.

Such is the case of Bank of America and J.P. Morgan, who already value as a real risk to their business the irruption of the cripoactives, moving away from the apparently calm position of Lagarde and the IMF. Both institutions are advancing blockchain projects, but they are cautiously assessing the influence of cryptocurrencies on their business.

The last annual report of Bank of America, filed with the Securities and Exchange Commission (SEC) of the United States, contains a series of considerations regarding the main business risks for the entity, where the influence of the cryptocurrencies.

According to the report, cryptocurrencies could limit their ability to track the movement of funds, making it difficult to comply with regulations in sensitive areas such as money laundering.

The Bank of America also warned that some customers could bet on institutions that begin to interfere in cryptographic investments, which could leave them out of the game, especially by the United States regulation, which must comply fully.

This position is similar to that of J.P. Morgan, who in his annual report expressed the "risks" implied by the adoption of the cryptoactives for the banking business, report filed with the SEC at the end of February.

According to the bank, cryptocurrencies are part of the new competition with banking institutions and the financial services industry, which is "highly competitive" and can be seriously compromised by these cryptographic instruments. One of the biggest fears of the bank is that cryptocurrencies could eliminate the need for the intermediation provided by this type of institutions in the exchange of funds between clients.

Both institutions point out that, in order to stay on the front line of this competition, they could require greater investments and the application of distributed accounting technology to their own business, bearing in mind the limitations in terms of current regulations for technology. There are few countries with regulations for cryptocurrencies, which gives them a wide margin of maneuver for their growth with respect to banks, since the current restrictions are not as strict as for traditional financial institutions.

For the J.P. Morgan the fate of the banks is clear: if they do not offer attractive and current services, they will lose customers and they will stop being striking in the market.

[Source: https://www.criptonoticias.com/colecciones/viven-criptomonedas-etapa-temprana-adopcion-institucional/Javier Bastardo