American Banks Encouraged To Partner with Cryptocurrency Firms

A recent report from the ABA (American Bankers Association) suggests that banks partner with cryptocurrency firms due to the growing client interest and profit in the sector. This 20-pages report provides a detailed analysis of the crypto, including a glossary. It also maps cryptocurrency activities to the bank services and products. The Banker’s association also suggests crypto use cases for the banking sector with regulatory issues and revenue models to the use case. Related Reading | Vitalik Buterin Urges Ethereum To Grow Beyond DApps The report has four distinct categories of crypto-assets: CBDC (Central Bank Digital Currency), Cryptocurrencies, Non-Fungible Tokens, and Stablecoins. There was also a mention of Defi (Decentralized Finance). Cryptocurrency Use Cases and Regulations According to the report, some of the use cases of crypto in the banking sector include; Store of value- Banks can earn revenue by facilitating crypto buying & selling on their platforms. Custody/Wallet Providers- Banks can offer digital wallets and charge service fees for them. Interest Bearing Accounts –Banks can earn a fee on interest through facilitating lending operations to investors. Lending –Banks can offer cryptocurrency loans to clients and charge a fee for it Payments- Banks can charge fees like what happens to credit or debit cards Broker-dealer-Banks can collect spread from crypto assets transaction and earn revenue Exch...