AskLeo - Bank Offered Crypto Exchange Services
Banks and governments all over the world have had a hard time to accept cryptocurrencies as potentially rival bank issued currencies, as trading assets and even as a store of value. Fiat money and gold were the standards until a few years ago. When the fight against crypto became similar to trying to stop a windmill, the banks stepped back and changed their tactics.
But have they really stepped back for good, or are they just emulating themselves on the new trend. I'd say that the CBDCs are a clear proof that banks are instead embracing the concept of digital currency and might even create their own blockchains in the future. If they couldn't stop crypto they can at least resemble, to some extent, what crypto does and survive as profitable financial institutions in the future.
There are already talks of a digital yuan, a digital ruble and an euro as well, and who knows what other central bank issued currencies will follow. I see those similar to the stable coins from crypto, the USDT, USDC, BUSD and so on... A digital currency pegged to some sort of a native currency. For now the direction of central banks towards having their own sort of cryptocurrencies seems to be clear.
I was thinking though, how long will it take them to have their own exchanging services such as centralized cypto exchanges have? Taking into consideration that they will have their own currency, call them national digital currencies, but it's still bank owned as long as they print them, pretty much the same as with the current fiat money, exchanging between CBDCs and crypto and even the opportunity to store crypto on one's bank account might be possible in a few years.
If those will even charge smaller fees than the usual centralized exchanges and allow such services to their already existent customers what will stop them from competing aggressively with our existent CEXs. If PayPal is already allowing similar crypto exchange services to its customers, why won't banks do the same...
Bankers are smart fellas and it's clear that they won't allow the crypto movement slip through their fingers, and the adjacent profits. Hence, I got a strong feeling that in a quite close future we will see major banks offering similar exchanging and storing services to our current crypto centralized exchanges.
The AskLeo question for today is: Do you think that those will ever pose a threat to the well established CEXs that we currently have or create their own niche and customers?
Thanks for attention, Adrian
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