Banking on Cryptocurrencies
Key Takeaways
Is cryptocurrency here to stay?
The financial services sector is increasingly enthusiastic about cryptocurrency applications and the blockchain technology that underpins them — some estimate that around 30% of investment banks’ infrastructure costs could be stripped out by using blockchain.
Management and control
Driven by Europe, efforts have begun to develop a globally coordinated regulatory approach to crypto assets, improve levels of transparency, and establish new codes of conduct and standards for disclosure and reporting.
Should banks enter the crypto market?
How should financial institutions position themselves in this new environment where crypto is increasingly legitimate, and in what areas should a bank choose to play?
FAQ: Crypto, Regulation & Financial Services
How can cryptocurrencies improve financial inclusion?
Cryptocurrencies can improve financial inclusion by enabling low‑cost, mobile‑based payments for people who struggle to access traditional banking services.
In regions where high fees and limited infrastructure create barriers, crypto allows users to send remittances and make payments using only a phone and internet connection. Adoption rates in countries like South Africa and Kenya already show how crypto can function as a quasi‑banking system for marginalized populations.
For a deeper look at the economic and social implications, download the full Thought Leadership report.
Why is the crypto market often described as volatile or a “Wild West”?
The crypto market is seen as highly volatile due to extreme price swings, speculative demand, and the collapse of major crypto projects, such as TerraUSD and Luna.
Regulators have called the sector a “Wild West” because rapid growth, insufficient oversight, and high‑profile failures create systemic risk concerns. This instability has triggered global discussions about coordinated regulation, taxation, and transparency standards..
To explore volatility drivers and emerging regulatory frameworks, download the full report.
How should banks adapt to the rise of cryptocurrencies?
Banks should adapt by defining their strategic role along the crypto value chain and aligning risk appetite with evolving regulation. Options include custody services, crypto trading, tokenization, or providing digital wallets - each requiring strong governance, compliance, and cybersecurity.
Institutions must also update IT infrastructure for blockchain connectivity, KYC/AML compliance, and resilience against emerging threats. Leading banks like JPMorgan and Goldman Sachs are already developing or offering digital asset services.
For detailed operating models, download the full Thought Leadership.
