The cryptocurrency industry has come a long way since its inception in 2008. Many areas have improved over the past 12 years, such as storage and sharing solutions. If you ask early adopters of cryptocurrency, they can tell you stories about how difficult it was to make a wallet or how difficult it was to go to a meeting and exchange bitcoins (BTC) without succumbing to deception.

Things have changed for the better since then when it comes to UX and UI. Today, creating a cryptocurrency wallet is as easy as setting up an email address. It’s the same with buying cryptocurrencies: in recent years, hundreds of reliable stock exchanges have emerged that make it easy and safe to buy and sell cryptocurrencies.

While I can cite many other examples in the crypto space that have improved over the past decade, there is still a major problem with most products and services in the crypto space: they are not in a fully integrated system. This is where cryptocurrency banks come to the rescue and change the rules of the game in the cryptocurrency field.

When I use the word “integral,” I mean two areas: the first is related to the cryptocurrency ecosystem, which offers a large number of interesting and promising applications and services spread across many platforms and service providers; The second area in the financial services sector is where crypto banks offer an integrated solution as they are the gateway between the crypto space and the traditional economic space. I want to cover both areas as they are equally important in understanding the revolutionary side of cryptocurrencies.

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Cryptobanks allow you to have cryptocurrency and traditional assets like fiat currencies, securities and more in one account. Most people who work with crypto have to deal with several third parties. You likely have cryptocurrencies on multiple exchanges, hardware wallets, and non-lender services, and you may have already interacted with popular decentralized financial applications. Of course, we shouldn’t forget about your paper bank account, from which you need to send money to the other party to buy cryptocurrency and send the proceeds back when selling cryptocurrency.

Finally, you have data and assets all over the place and therefore carry more counterparty risk.

Crypto banks inform you that you have all your crypto assets, currencies and services in a convenient bank account and that you have an agreement with a service provider. While distributed ledgers are good, distributed control leaves a lot to be desired. Crypto banks allow you to centrally control your decentralized assets. This removes the current risk that many crypto investors face when dealing with a large number of different service providers in different jurisdictions. With Crypto Bank, you have a single portal dedicated to multiple services and products.

Bridge to the ancient world
While the benefits of cryptocurrency are clear, the number of traditional players like pension funds, traditional hedge funds or family offices entering the cryptocurrency market is surprisingly small. While recent announcements such as PayPal’s new cryptocurrency offering also show a trend for organizations to emerge, the vast majority have not yet done so. The reason for this is the lack of regulations and reliable partners for work.

Cryptobanks are the ideal partner to help institutional players enter the crypto space, invest in the world of digital assets, and safely store assets by providing a full range of banking services.

Institutions often want to invest in cryptocurrencies, but investors or their board of directors are wary of the risk of dealing with cryptocurrencies. However, if the fund is able to partner with a regulated crypto bank, it could change the perspective of key stakeholders. This could dramatically increase cryptocurrency adoption as the mass market often follows major players. The presence of an increasing number of institutional players in cryptography will benefit the entire space.

Cryptobanks act as a bridge between the crypto world and traditional financial services. By obtaining a banking license, the cryptobank meets the requirements and standards of the world of traditional financial services, providing services and products in the field of cryptography. Establishing a seamless connection between these two worlds will be a game changer.

Organization is the key to the future
Previously, the crypto room was mostly disorganized. Like their custodial and exchange solutions, the situation has changed dramatically, which, in particular, has benefited investors. Most jurisdictions have created laws and regulations regarding crypto assets and are drafting new laws to incorporate them into the world of regulated financial services like Switzerland.

Source: CoinTelegraph

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