For those unfamiliar with Bitcoin, the realm of cryptocurrency can be overwhelming. Many people outside the industry believe that cryptocurrencies are here to stay, while others say they’re a passing fad. However, there is disagreement and ambiguity. There are no global rules on cryptocurrencies, and the currency is not legal tender in any country. It’s no surprise that banks have taken so long to accept cryptocurrency.

Consider the views of several prominent countries when it comes to cryptocurrencies and banking. Many leading nations are concerned about the long-term value of Bitcoin and other cryptocurrencies in much of Europe, as well as the United States, Canada, and Australia. Many governments are also concerned with the ICO system’s security dangers. China, Russia, Vietnam, and South Korea have currently banned ICOs.

Banks and cryptocurrency users face distinct challenges. There are several hurdles to overcome:

1.A lack of faith in the system

2. While there are many other things that may have gone wrong, in most cases the problem is a lack of expertise on the technological side.

3. A lack of respect for cryptocurrency users and investors is one factor that’s becoming increasingly important.

Why are crypto-friendly banks so vital for the future of the industry?

The enemy isn’t necessarily the crypto-friendly banks. In reality, they are a compromise between the old-fashioned banking system and modern Bitcoin choices. Because of the absence of structure and regulation, financial ministries are wary of the cryptocurrency technology. The idea that Bitcoin would render the need for banks obsolete scared them. A well-designed crypto-friendly bank should provide a balance between all parties. However, there is still a lot of opposition.

The prospect of cryptocurrencies and crypto-banking is accepted more readily in some countries than in others. In fact, Switzerland was dubbed the “crypto-nation” by its Economics Minister back in January. This represented a more welcoming attitude toward cryptocurrency banking than that observed in other nations. They want investors and firms from all over the world to come to Switzerland instead of focusing on security issues and the potentially volatile nature of these currencies. Many firms have since established operations in the country. Switzerland has the trust in the system, knowledge of technology, and respect of customers to make this work.

 

Binance, for example, has a cryptocurrency-friendly bank that aims to solve the key issues in crypto banking.

There’s still a lot of uncertainty and hesitation when it comes to the larger banks in the industry. This is when small banking start-ups see their opportunity to fill that niche. These new firms are looking for ways to break away from the mold with a positive attitude. They can because they:

1. are prepared to put their trust in these cryptocurrencies where other back down.

2. are prepared to invest in the technology to provide an effective service.

3. are prepared to listen to users and investors and provide options to suit their needs.

With a younger market, these new banking businesses are aware of the appeal of bitcoin and other cryptocurrency offerings. The idea is that not only may they capitalise on a trend — making traditional banks seem antiquated in the process — but they may also demonstrate to be consumer friendly. They aim to offer more alternatives and investment possibilities, while also appealing to millennials

It’s time to go whale watching.

When attempting to combat all those whales in the cryptocurrency world, greater regulation and more choices for ordinary consumers are also required. With a few of users controlling as much as 40% of the market, these giants have a significant impact on the market. Their activities frequently result in crashes and fluctuations. Because of this, broader usage of cryptocurrency and accessibility for the average person may be a benefit. The more we can limit whales’ influence, the greater the system’s stability. The more stable the system is, the higher the chance that nations will adopt it in the future.

Customers who use cryptocurrency have a need for a crypto-friendly bank, and they need it now.

The existence of too many large banks and major financial powers undoubtedly contributes to the problem. Their failure to recognize and embrace new technologies has stymied any progress in cryptobanking as a worldwide system. These new banking ventures provide an alternative that is friendlier and more understanding. Users may finally have a real form of cryptocurrency and an opportunity to expand their crypto funds. These banks are a mix of old and new methods. This is the most effective approach for cryptocurrencies to obtain stability and reach mass adoption. Customers just need more businesses and nations to join up.