Recently the news from the banks on the Bitcoin phenomena can be described as not as coherent as one should expect from the financial sector. Some banks are more open to the concept of Bitcoin and digital currency in general. For example look at Deutsche bank or the Bank of England that describe Bitcoin as “innovative”.
However there are also banks on the other side of the fence and claim that Bitcoin is “ disruptive, volatile and can’t be trusted”. We can point to the multiple reports, mostly with accompanied by statistical data charts that clearly shows how “bad Bitcoin really is”. Some even claim that “Bitcoin will undermine and in a couple of years will demolish the existing financial structures”.
According to an employee who wants to remain anonymous “ Digital currency, like Bitcoin, is very disruptive for many financial institutions and government as well”.
There is also a very small, but growing, group of banks that are proponents of Bitcoin and other digital currencies. Fidor bank is one and there are other banks in Europe that are trying to find a way to incorporate Bitcoin and digital currency in a service pack they can offer to their customers.
Nevertheless the group of banks that is actively searching for ways to stay legal and try to incorporate crypto currency into their business model is small at the moment. The main problem is the legal aspect and the lack thereof. Most policy makers and lawyers do not have a clue what they are doing. a great example is the Bitlicense which created a huge backlash from the crypto community.
Still there are a lot of lawyers that are actively thinking about creating a great legal system. They see that creating a good law will give the crypto eco system the necessary boost it needs to expand into the general world community.
If we look at digital currency some say it is “new” and as such it is disruptive. now let us look at how people receive their paycheck or get paid for an item they sold online. Everything is digital. The company, buyer, whoever sends money from their account to your account ( this is done all digitally). Everything is digital so we can speak of the digital evolution of money. Bitcoin and other crypto currencies are just another version. It is not something new like some people hint on ( like some of KPMG would like us to believe).
Both camps, the pro and contra bitcoin camps love to use statistical data and graphics to drive their point through. Whenever you encounter statistical data you have to be very wary. Statistical data can be used to misrepresent the truth. For example: we can make statistics and graphic charts that show that the current banking system is woefully inadequate, antiquated and untrustworthy.) So you have to ask what the parameters they used to collect the data that was used in their statistics, did they ignore data because their graphic wouldn’t look as good, etc.
Also the question on how much data they used into a survey, report or statistical representation of the “truth” is also important. If they used only 500 or less data in their statistics will be less accurate. To approach some reasonable “correct” and “realistic” statistics you need a 10 000 data inputs or sources to get a bit more exact estimate. Nevertheless on these statistics that used 10 000 data, the mistake margin is between 1-5%. So basing your whole discourse on the fact that “a statistical analysis or statistical graphic” shows that crypto might be bad for the financial sector is a bit rocky and will generate a lot of critics that will break down those reports.
Now if these statistical data is implemented to strengthen the findings it will be a bit harder to dismiss, provided the research is done adequately( which is the big problem most of the time).
So why are some of the banks so fearful about Bitcoin and other crypto while others are supportive or at least have a less adversarial stance toward everything digital currency? Most of the banks that are pro crypto are more forward thinking, innovative or have just a keen eye for business.
There is also another reason why some banks are shouting so loud that Bitcoin and other crypto are “disruptive” to the current financial system. If you have been active in the day trading branch you will undoubtedly see some correlations. The banks mean the opposite they are saying and advertising to the general public. Don’t buy means buy in their vocabulary and vise versa.
So to conclude you need to do your won research because 99,9% what the banks are yelling about is mostly rubbish and is put out there for a reason. Furthermore Bitcoin and digital currency isn’t something new but has been around a while, even the banks use it themselves.