From the onset of the crypto industry, traditional financial institutions treated cryptocurrencies and blockchain technology with skepticism. However, the industry’s technology has evolved in just under 10 years, bringing disruptive products to the finance industry. Now, these centralized institutions can’t keep their eyeballs off the crypto industry as they scramble to learn how best they can leverage the technology for their operations. It is proving too costly to overlook the crypto industry.
Reluctant Institutions Waking Up
Most governments displayed arrogance regarding cryptocurrencies, some even banning them in their countries. However, some central banks have retracted and are exploring options for the technology. Some governments are keen on developing policies to create regulatory frameworks around the industry.
Top financial institutions including banks and other financial corporations often viewed the industry as volatile and one with too many risks not worth taking. Currently, corporations are speedily adopting blockchain technology. Some firms are setting up their systems to start accepting cryptocurrencies as payment. Others are investing in digital currencies as alternative sources of revenue.
Lately, publicly traded firms, like Tesla and MicroStrategy have invested in Bitcoin. Major banks like Deutsche Bank and BNY Mellon are adding cryptocurrency services to their operations. Payment processing firms, PayPal and Square recently added support for cryptocurrency services on users’ wallets.
Counting the Cost
Many institutions getting started on blockchain products may have reacted fairly late to the opportunities they would have had. Despite counting the cost of these missed opportunities, it’s better late than never for them.
Some institutions (and individuals too!) remain suspicious of cryptocurrencies, and they could miss out on even more opportunities that blockchain presents.
The crypto market has grown too big. Shrugging it off means several missed opportunities to decentralize your finance operations, expand your payment options, create decentralized applications among many other possibilities.
Cryptocurrencies are going mainstream and the time to embrace is now if you haven’t.