On February 17, the SRM (Strategic Resource Management) company today released its latest report, “Cryptocurrency 2022: Turning Threats into Opportunities.” The report states that with the growing popularity of cryptocurrencies, financial institutions need to pay attention and be prepared, which will have an impact on their current and future core businesses.
While most focus on the value of cryptocurrencies as an investment vehicle, the opportunity to use cryptocurrencies as a means of exchange is rapidly expanding, and it is already used to settle transactions. Multiple credit card issuers have launched crypto-based rewards programs, and leading processors have partnered with crypto infrastructure providers to enable crypto transactions.
Regulators have sought input from the market to help them assess the best way to build safeguards for such activity.
The Federal Reserve is even working with the Massachusetts Institute of Technology to explore the potential of central bank digital currencies (CBDCs). Banks and credit unions must understand the evolution of cryptocurrencies and develop strategies to act whenever the regulatory environment and market conditions demand.