Bitcoin’s popularity is ever-increasing that now banks want in the action. Yes, banks. You heard it right. Now, that there are accumulated more than $100 billion in digital currencies, banks are debating on how and when to be involved with Bitcoin.
Lloyd Blankfein, the Goldman Sachs Group Inc. CEO sparked a lot of interest when he tweeted on Tuesday that his firm is looking into Bitcoin. Other global investment banks are also joining the trend. This information comes from research from industry consultants. The epic rise of Bitcoin, for more than 300 percent just this year has increased the attention of wealthy investors and hedge funds.
The EconomicTimes poses an interesting question that is holding the WallStreet back on getting involved with the decentralized currency. “How do banks that are required by law to prevent money-laundering handle a currency that’s not issued by a government and that keeps it’s users anonymous?”.
Debates have been already opened between major CEO’s such as Jamie Dimon and Larry Fink who said that Bitcoin is a tool that is mostly used by criminals while, Morgan Stanley CEO James Gorman was more optimistic saying that this is “more than just a fad”.
Finance experts are unsatisfied with how they only are able to see the tip of the iceberg, and they lack understanding of the structure and purpose of bitcoin.
Banks are also afraid of the scrutiny involved in getting involved with cryptocurrencies due to it running on decentralized web of computers that sidesteps any regulators or banks. If any adoption of cryptocurrency happens, banks and regulators will need to form a framework on how the unregulated new digital currency will fit with the others.