How can traditional banking systems integrate cryptocurrencies?

The benefit of integration of cryptocurrency in the traditional banks will bring about building a model on blockchain which will facilitate more secured transaction, fast execution of operation, efficient user experience and low transaction cost across border. The traditional banks should not be seeing fintechs as competitors but rather innovative entities.

In my opinion, traditional banks offering cryptocurrency as an alternate asset just doesn’t make sense at all. Why? For starters, cryptocurrencies were to avoid middle men like banks from taking away a big cut of the margins restricting the returns people get on appreciating assets. So if I had to hodl cryptocurrencies why would I want my Bank as my custodian ? Also, do they even have the tech resources to store my crypto securely in a cold wallet ? And how are they safeguarding the keys ?

Exploring avenues for traditional banking systems to seamlessly integrate cryptocurrencies remains a dynamic challenge. Embracing blockchain technology and fostering collaborations with fintech innovators are pivotal steps. The careful calibration of regulatory compliance and technological agility will be instrumental in navigating this transformative landscape. It's a journey where adaptability meets regulatory rigor, and the convergence of traditional and digital finance paves the way for a future-proof banking ecosystem.

In my opinion, traditional banks offering cryptocurrency as an alternate asset just doesn’t make sense at all. Why? For starters, cryptocurrencies were to avoid middle men like banks from taking away a big cut of the margins restricting the returns people get on appreciating assets. So if I had to hodl cryptocurrencies why would I want my Bank as my custodian ? Also, do they even have the tech resources to store my crypto securely in a cold wallet ? And how are they safeguarding the keys ?

In my opinion, traditional banks offering cryptocurrency as an alternate asset just doesn’t make sense at all. Why? For starters, cryptocurrencies were to avoid middle men like banks from taking away a big cut of the margins restricting the returns people get on appreciating assets. So if I had to hodl cryptocurrencies why would I want my Bank as my custodian ? Also, do they even have the tech resources to store my crypto securely in a cold wallet ? And how are they safeguarding the keys ?

It is certainly an interesting topic. Two or three years ago many community bankers frantically trying to figure out a play in the space since their retail clients were interested in investing and significant deposits were leaving the banks to do so. Kamalika's point point is valid as this somewhat antithetical to the premise of crypto-currencies. Based on the significant losses of retail investors over that time, the interest has waned significantly in the community banking space. Some of the challenge for many community banks is that their core accounting system has no functionality to support foreign currency valuation fluctuations.

One important factor which revolves from the mass adoption friction points, is to provide secure custody solutions for crypto to ensure the safety of customers' digital assets. Emphasizing on education is crucial, so informing customers about using crypto and other financial digital assets and the associated risks and benefits, remain a valid point in the integration strategy.