Mobey Forum has published its latest report outlining the most important and influential developments across the virtual currencies industry. Entitled ‘What Banks Need to Know About Virtual Currencies Right Now’, it explores the key considerations for banks and financial institutions when taking the first steps on the road to creating their own strategic approach.
The Virtual Currencies Expert Group, co-chaired by Hans Henrik Hoffmeyer, co-founder of Coinify, and Peter Stephens, CIO at DrumG Technologies, was formed in 2017 to explore the strengths, weaknesses, opportunities and threats posed by virtual currencies to banks and financial institutions globally.
Peter Stephens comments: “Even though virtual currencies have been on the list of banks for years, most have taken a hands-off approach. This is now changing. The impact of regulations on virtual currencies is better understood and some of the world’s largest financial institutions are beginning to formalise positions. Digital assets and tokenised fundraising has gained some traction in the blockchain space and the emergence of stablecoins has the potential to bridge between traditional and crypto assets. As the industry continues to develop, it’s time for banks to take a closer look.”
Hans Henrik adds: “Regulations are emerging that may favour banks’ deep regulatory experience and hence are effectively preparing the ecosystem for banks to engage. The potential revenue returns are great and the range of viable options for banks are also diversifying. That said, the risks remain significant and manifold. Volatility is a defining characteristic of the market and reported cases of fraud are, by comparison, extraordinarily high. The combination of these factors means that now is the time for banks everywhere to move their strategic evaluation of this market higher up the priority list.”
Elina Mattila, Executive Director at Mobey Forum, agrees: “Decisions will soon have to be made about whether banks should be leaders or followers. These decisions will require strategies that explore how and when they should engage with this rapidly evolving ecosystem. Our report, the direct result of expert collaboration in a commercially-neutral environment, aims to provoke further discussion and investigation among banks all across the world.”