CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 82.67% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money

Survey finds FSI execs are bullish on crypto adoption

By Robert Davis

17:21, 26 August 2021

Cryptocurrencies
Cryptocurrencies. Photo: Shutterstock

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.

BTC/USD

97,425.50 Price
+3.040% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 22:00 (UTC)
Spread 106.00

ETH/USD

3,361.28 Price
+8.890% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 22:00 (UTC)
Spread 6.00

DOGE/USD

0.39 Price
+4.450% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 22:00 (UTC)
Spread 0.0012872

XRP/USD

1.14 Price
+2.840% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 22:00 (UTC)
Spread 0.01168

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.

What is your sentiment on BTC/USD?

97425.50
Bullish
or
Bearish
Vote to see Traders sentiment!

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.”

Trade Bitcoin Cash to Bitcoin - BCH/BTC CFD

1m
5m
15m
30m
1H
4H
1D
1W

Trade Ethereum to Euro - ETH/EUR CFD

1m
5m
15m
30m
1H
4H
1D
1W

Related topics

Rate this article

Capital Com is an execution-only service provider. The material provided in this article is for information purposes only and should not be understood as investment advice. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents and has not been prepared in accordance with the legal requirements designed to promote investment research independence. While the information in this communication, or on which this communication is based, has been obtained from sources that Capital.com believes to be reliable and accurate, it has not undergone independent verification. No representation or warranty, whether expressed or implied, is made as to the accuracy or completeness of any information obtained from third parties. If you rely on the information on this page, then you do so entirely at your own risk.

Still looking for a broker you can trust?

Join the 660,000+ traders worldwide that chose to trade with Capital.com

1. Create & verify your account 2. Make your first deposit 3. You’re all set. Start trading