On many occasions, for the members of the crypto community, it seems clear that crypto-money and traditional banks are enemies. After all, the main reason behind the creation of Bitcoin, 11 years ago, was to challenge Fiat money by creating a decentralized alternative. However, new data would indicate that banks are increasing their profits after adopting Bitcoin. It shows that there is ample ground for integration between the two markets.
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The adoption of crypto currencies in the world
From the beginning, the issue of adopting cryptomonies worldwide has been complicated. Especially because of the resistance of governments around the world to accept the existence of cryptoactives as a reality, and to provide them with the status of financial assets within their legislation. Often going to the extreme of prohibiting the use of Bitcoin and other virtual currencies within their territory.
Of course, over the years, countries have had to change their attitude towards the crypto world. For, as the importance of Blockchain technology increases in all sectors, so does that of virtual currencies. This leads to traditional companies, including banks, to start integrating crypto-currencies into their business model.
And among the countries of the world, Switzerland is one of the ones that has advanced more in this integration process between traditional banks and crypto-currencies like Bitcoin. It has advanced legislation that allows them to circulate within its territory. This has led to the Swiss country becoming a true world centre for the development of cryptoactives.
Switzerland maintains the same legislation in the Blockchain
Banks and Bitcoin in Switzerland
This has enabled major Swiss banks to take the step of adopting Bitcoin as part of their regular business portfolio. This is the case of one of the top five Swiss banks, Julius Baer Group, which recently incorporated a Bitcoin custody service as part of the products it offers its customers.
And thanks to this, in the first half of 2020 alone, the Swiss bank has seen a 34% increase in profits, which have grown by $524 million. This is due in part to the Coronavirus crisis and the massive influx of money into the financial system, thanks to government stimulus plans to weather the crisis. But also influencing the increase in the price of Bitcoin experienced during this period of time.
„Julius Baer has expanded its range of services and now includes digital assets offering solutions such as secure storage and transactions . The Bank can offer access to a select group of crypto-currencies, chosen for their marketability, security and technical reliability“. commented the bank earlier this year.
In this way, the levels of integration between Crypto Genius and traditional banks can be clearly seen. These not only aim to continue growing, but also provide great benefits to both users and institutions such as Julius Baer. That’s why this is our Tip of the Day here at CryptTrend.