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Blockchains and banks still have to compromise with each other

The “Crypto Winter” should be taken as an opportunity to promote the dialogue on how banks and blockchain companies can work together, writes Michael Welti for finews.first.

We are at the very beginning of a very exciting development. Different states, central banks, NGOs and private organizations are working on solutions to make processes more efficient, cost-effective and secure. They bring both new business opportunities and support to regions where they are urgently needed.

Until just a few months ago it was still on everyone’s lips that only the Blockchain and its decentralized solutions were the only way to tackle any kind of solution in this world. In particular, the centrally managed banks worldwide and their role as “trusted party” should be replaced.

Now we know that not every solution needs the blockchain. And true to the motto “Where Blockchain is on it, is not always Blockchain in it” sets the crypto winter many companies. At the same time, the regulator’s competence has increased and support in politics has grown. Thus, there is a natural selection in which real solutions with good governance will prevail.

“Switzerland is once again perceived as the” Land of Milk and Honey “»

Regulation is picking up speed: the Blockchain community may well consider this a success. Because this is the unmistakable sign that this movement is now on the way to becoming a successful business model. The vision is slowly but surely becoming a reality.

In the midst of Crypto-Winter, many now realize that the targeted financial market revolution has temporarily faltered. The fintech entrepreneurs have recognized the potential of Blockchain at an early stage, positioned themselves and pushed forward active development. This often happened in Switzerland: The immigration of talents, mostly in Zurich and Zug, further promotes the multicultural approach of our great Swiss homeland.

As once in research and development, we are now able to attract the best talent in Switzerland. In terms of blockchain, Switzerland is one of the trendsetters, attaining global attention and positioning itself as an innovation promoter, for example for business hubs. Switzerland is once again perceived as “Land of Milk and Honey” – thanks to the unwavering faith and drive of blockchain innovators and entrepreneurs.

Often, however, one thing is completely ignored: it does not matter who wins the race for innovation. It is irrelevant whether it is the centrally organized financial institutions or the thousands of startups and established companies that are working hard on decentralized solutions. Above all, it has to be a solution that offers corresponding advantages for customers. The Crypto-Winter should be used as an opportunity to promote dialogue on how banks and blockchain companies can work together to provide the best solutions for their clients.

The neo-banks are already showing that break-through of traditional patterns is possible. This started with offers that were primarily aimed at millennials. Well established HNWI’s and UHNWI’s come to the taste. Starting with credit card solutions that were long overdue, this continues with efficient investment proposals, Robo-Advisor, trading capabilities, and more.

The innovators from the fintech sector keep the banks busy: The established banks must now drive their own innovations. But they are not under time pressure and therefore do not present the first ideas. Because with the established banks much is at stake: existing customers and their trust, bank licenses, proven processes, investors, reputation and jobs.

Startups can act more agile and take on greater risks. Therefore, the possible yields are often many times higher. The Risk Reward Ratio must determine and answer for each organization and its investors. Good thing, because competition stimulates the business and should bring the customer in the end an added value. Actually, it’s about offering better solutions for everyone. It will build a bridge between Banking and Blockchain. The two areas must come together and, as is often the case, combine the best of two worlds.

Published inCryptocurrenciesFintech

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