With the rise of digital assets and decentralised finance, the financial sector is rapidly changing. To remain competitive, traditional banks must adjust to emerging technologies and financial structures. In this discussion, I explored how banks have become more operationally flexible, the shift towards digital assets, and how blockchain technology might have enhanced security and helped combat money laundering
Key Points Discussed:
- 24/7 banking and crypto integration: Banks are evolving to operate around the clock and are incorporating crypto technology to remain competitive.
- Shift to digital assets: The financialisation of assets and their trade in digital formats is transforming traditional banking practices.
- Challenges in business loans: Securing loans from traditional banks is becoming more difficult, driving the need for data digitisation, as seen in China’s use of digitised supply chain data for credit.
- Blockchain for security: Blockchain technology offers solutions for improving security and combating money laundering, contrasting with the slower adoption in traditional US banks.
- Impact of global trends: The push for digital payments, China’s evolving stance on crypto, and geopolitical tensions are shaping global currency flows and the future of digital assets.
In conclusion, if traditional banks do not adopt digital and cryptocurrency developments, they risk becoming outdated. As I discussed, adapting to these changes in a rapidly evolving financial landscape is not just a necessity but also a competitive advantage.
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