Survey finds FSI execs are bullish on crypto adoption
By Robert Davis
17:21, 26 August 2021
A survey by Deloitte found that most global leaders in the financial services industry (FSI) are future-proofing their organizations by acquiring digital assets like cryptocurrency and understanding their underlying technologies.
According to the survey, more than three-quarters of FSI executives believe their organizations will lose an opportunity for competitive advantage if they fail to adopt digital assets or blockchain.
Another 80% of respondents said their digital assets will be “very” or “somewhat” important to their organization within the next two years.
Why digital?
While it may seem like FSI companies are passively collecting digital assets, the survey found the opposite is true. In fact, the survey found FSI companies that are adopting digital currency strategies are also taking “a more active role in their own future.”
“To ensure strong operational protections and customers’ unique operational preferences, the custody of digital assets – unlike other assets, such as publicly traded securities – require a new kind of technical infrastructure as well as new processes and procedures,” the survey concludes.
One reason the survey says FSI leaders are keen on adopting a digital currency strategy is because the technology could completely disrupt the industry as we know it.
For example, digital currencies could inspire companies to adopt self-banking models, which the survey says is “a major existential threat” to banking in general.
Instead, the survey suggests that banks should work with companies to develop “elevated strategies” to contend with other immediate pitfalls such as crypto exchanges, custodians, and crypto-based investments.
Another potential windfall from the adoption of cryptocurrencies is the changing landscape of payment options. Over 43% of respondents said digital assets will play a “very important” role in future payment processing features.
Today, this process is controlled by banks. The survey estimates approximately $2trn in global processing revenue transfers through banks. These revenues will continually diminish unless banks and big corporations find a middle ground, the survey says.
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Crowded pool
Companies who decide to adopt a digital currency strategy will be entering a crowded pool. There are several companies that are already either accepting Bitcoin—or other cryptocurrencies—as payment. Others are finding ways to use the digital currency to diversify their books.
Recently, PayPal announced it launched a new service that allows UK customers to buy and hold cryptocurrency. This feature is also available for the company’s US customers.
Other companies such as AT&T, DoorDash, and Amazon allow their customers to pay for services in cryptocurrency.
In an interview with Bitcoin News, Bank of America’s Latin American strategist Claudio Irigoyen described cryptocurrency as a money-saving device for multi-national companies like Amazon.
“Bitcoin could be used as an intermediary for cross-border transfer,” Irigoyen told the news website. “Using bitcoin for remittances could potentially reduce transaction costs compared to traditional remittance channels.”
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