HomeCryptoBitcoinBanks will drive the adoption of Bitcoin

Banks will drive the adoption of Bitcoin

Institutional investors are choosing bitcoin and banks have no choice but to open up to BTC in order to offer an extra service alongside traditional ones.

This has happened to Morgan Stanley, which has decided to offer investment products that allow exposure to Bitcoin to its wealthier clients.

It is the first major bank in the US to offer BTC, and it is conceivable that Morgan Stanley has in fact opened the trail for other banks to make similar choices.

For Simon Peters of eToro, this turnaround may lead to greater adoption of Bitcoin. 

“With some of the largest banks in the world now moving to offer their clients bitcoin via a variety of products, we think this is lighting the touch paper for an explosion in interest in cryptoassets”.

According to Simon Peters, investors with high amounts of assets to invest as well as their financial advisors are the ones who have been least exposed to cryptocurrencies so far, perhaps because they feel the time is not ready. But now things are changing. Simon Peters says in this regard: 

“As banks increasingly consider allocations to cryptoassets on behalf of clients, we expect a fresh wave of interest for bitcoin and its peers which could have a significant impact on demand”.

Not all banks love bitcoin

There is still a long way to go for bitcoin to officially become a product that can also be offered in traditional banks. It is enough to think that in the same days of Morgan Stanley’s announcement, another important credit institution in the United States, Bank of America, issued a report in which it contested the energy consumption of Bitcoin. 

What is certain is that Bitcoin was not born to be a bank product, but to be an alternative to banks. However, over the years, partly due to the slowness of its network, it is increasingly becoming a safe haven asset rather than a payment tool.

The economic uncertainties exacerbated by the pandemic, combined with the soaring price, have resulted in institutional investors and large companies, starting with Microstrategy and Tesla, choosing to allocate some of their capital in bitcoin. They have done so through exchanges for now (both have chosen Coinbase), precisely because banks do not yet offer this kind of service.

Perhaps it is also in order not to leave the playing field open to exchanges that banks are obliged to open up to bitcoin.

 

Eleonora Spagnolo
Eleonora Spagnolo
Journalist passionate about the web and the digital world. She graduated with honours in Multimedia Publishing at the University La Sapienza in Rome and completed a master's degree in Web and Social Media Marketing.
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