- Jefferson Bank says that it is going to look for ways to adopt cryptocurrency in the traditional banking system
- Conventional banks find cryptocurrency to be a threat to the current system of banking
- Increasing interest of investors towards crypto is driving banks towards it as well
A crypto bank is very different from a conventional bank. A basic difference being that usual banks operating in any country have legal permission to be called ‘a bank’. However, since most countries are receptive to cryptocurrency, not all regions in the world have been able to adopt it smoothly. With the interest of the investors increasing towards digital finance, banks are looking forward to incorporating the concept and technology so as to blend with the interests of the customers. Jefferson Bank is exploring the ecosystem and is planning to adopt it for its customers.
Jefferson Bank sees an opportunity in digital finance
Users of cryptocurrency are in a complete belief that the market will expand and dominate all other financial services that are existingly offered by banks. Looming as a threat to traditional banks, cryptocurrency is being accepted in the network by some of the banks that want to cater to the interest of the customers and are willing to change their methodology. Jefferson Bank is among those banks that are not seeing it as a threat, rather, are seeing it as an opportunity to expand their services.
Erik Ahlenius, who is the Executive Vice President at Jefferson Bank, mentions that bitcoin was first introduced to him in the year 2017 through a client. The client asked the bank if there existed a possibility of holding digital assets in the bank in her trust. Erik says that he is now looking for plans to adopt Bitcoin in the bank as the value for it continues to rise in the market. Jefferson Bank has been delving into options that transfers to custody services for customers. A possible involvement of Coinbase custody is also in the picture for Jefferson.
Conventional Banks fear the nature of crypto
The irreversibility of the crypto assets creates a distinct level of potential issues. Community banks are afraid to step into the new territory because of the unique and new aspect attached to cryptocurrency. Banks do not want to touch something that is not known to them. The Texas Department of Banking recently published a report to confirm that state-chartered banks can offer cryptocurrency custody services to customers from the month of June. Banks will be allowed to choose from offer services based on their business model, expertise and risk appetite. Jefferson Bank looks to be taking the leap of risk in order to satisfy the clients.
Currently, the bank is limited to bonds, and going out further on the risk curve, buying stocks and things like that in the equity market. However, the future plans of Jefferson are affiliated to offer their clients decentralized financial products. Jefferson Bank is on the stage of innovation and forward thinking.