In addition to rising prices, one thing that has struck this week is that the regulated financial system is becoming increasingly involved in the crypto-economy. Not every crypto enthusiast likes the fact that the fronts between the old and the new world are getting more and more blurred. But it is clear that the pressure to innovate is driving competition and bringing benefits for consumers and investors.
Goldman Sachs hires a crypto trader, VPE Bank is the first bank in Germany to offer cryptocurrency trading, Nasdaq plans a crypto exchange, and Spanish BBVA Bank lends out a blockchain loan that has BITREAL crypto funds obtained a marketing authorization from BaFin — and so on, and so on. The financial system, which was originally to be replaced by Bitcoin and Co., is now producing news supporting the crypto market.
Be it the blockchain as a settlement infrastructure or cryptocurrency, which provides a new playground for investment banking — the crypto-hype is only really beginning to hit the financial system. The rigid financial world can not keep up with the speed of blockchain startups, so only now are the first effects of the crypto-economy in the banking world noticeable.
An ever stronger regulation of the crypto sector drives the crypto market into the arms of the banks and fund companies. Their years of experience, their licenses and their still-filled war cashes make them to still powerful players who do not want to give up the young startups from the fintech industry so easily beaten.
Banks and financial service providers storm the crypto-parquet
Even if this is not in the interest of some idealistic crypto-supporters, the fronts between the crypto and banking worlds are getting blurred. The professionalization of the crypto sector and the newly created pressure on the part of the banks lead in part to a merger of the two financial economies — central meets decentralized. Of course, the uncertainty is great on both sides. The contradictions between the crypto-economics approach and the traditional financial world can not be resolved easily, but nevertheless, it is clear that positive effects can be derived. The emergence of the crypto-economy creates more competition in the otherwise anti-innovation financial system. It is clear: Who is not ready to change, loses ground and sooner or later will fly out. This new innovation pressure leads that the old and established players in future will orient themselves much more strongly to the needs of consumers and investors. Because there is another alternative than before: the crypto-economy.