Banks and financial institutions are those industries that have been affected the most with the surge in cryptocurrencies and blockchain technology. And this is what Salvador Casquero, a former JP Morgan and BBVA executive, believes. He said that banks have officially lost the battle against crypto and fintech start-ups.
Cryptos and Blockchain Against Banks
Banks, including JP Morgan and BBVA, have been important players all over the world in the current financial system. Indeed, banks were helping individuals and companies have access to the financial world, process transactions and receive payments.
But in the last years, we have seen a very fast growth of new start-ups in the fin-tech sector and the surge of cryptocurrencies. This is clearly re-shaping the way in which we know the financial world.
Casquero commented about this situation:
“From the ‘-tech’ suffix I witnessed how fintechs, unexpected technology competitors with financial flavour, started to unbundle the banks. Banks were doing a lot of things at a single given time and they found themselves competing with small, fast and flexible companies which were optimized in terms of flow, resources, business models and technology and are tailored towards very specific products.”
Cryptocurrencies are fast, secure and can be easily acquired by everyone. Banking transactions are slow, expensive and inefficient.
Casquero explained that cryptocurrencies do not require central banks, institutions or governments for them to keep working. And this is something that banks already know. Indeed, Bank of America and JP Morgan communicated to their investors and clients that if they do not invest heavily in new technologies and innovation they will be losing an important market in the financial world.
Several banks are already working with blockchain and cryptocurrencies. We can mention Santander Group or JP Morgan itself. At the same time, there are banks like Banco Masventas in Argentina that are processing international transactions using the famous virtual currency Bitcoin. According to this financial institution is cheaper, faster and secure; users to not need to wait days for a transaction to settle and arrive to another country.