A bank is a financial institution that transacts business involving money. A bank plays an important role in the financial sector of the economy, the circulation of money and transacting businesses in all the financial sector of the economy. The dictionary says a bank is a business which holds money for its clients, which lends money at interest, and trades generally in money. There are different types of bank and they all have their functions, which is based what they do. An interesting detail about a bank is that they meet the needs of their customers. Few examples of banks are the central bank (apex bank), commercial banks (profit oriented banks), microfinance banks (banks for low income people), non-profit banks, mortgage banks (banks for housing & real estate) etc.
A bank is a financial institution that accepts deposits from the public and creates a demand deposit while simultaneously making loans. Lending activities can be directly performed by the bank or indirectly through capital markets.source
A bank is a financial institution that is licensed to accept checking and savings deposits and make loans. Banks also provide related services such as individual retirement accounts (IRAs), certificates of deposit (CDs), currency exchange, and safe deposit boxes.source
With the wide spread of digital currency worldwide, there have been questions about the place of banks in this new era of cryptocurrency. But the fact remains that the development in currencies worldwide does not in any way displace the functions of the bank, instead it complements the bank. Banks can work in line with traders to achieve a common ground in attracting more customers to both the traditional function and the modern function, including the virtual space. Or better still; the banks can be agents themselves for the crypto space. I will tell you how.
Banks can upgrade their activities into being agents of digital currency and tokens, hereby trading in the crypto space. It is really a beneficial enterprise for the banks to execute because they have the capital and man power to carry out this function. The banks can start trading with minimum fund to gain experience and then increase the stakes when they have gained more experience over time. They can train their staffs in the know-how of how the crypto space works. The banks can also educate its customers into making use of digital currency. Since the banks already have the trust of its customers, it will be easier for them to convince their customers into joining the crypto space.
So, I will categorically say that the crypto space is not a threat to the operations of banks; rather banks can be an agent to the development of the digital currencies in the economy, permitted the government is in agreement. Although, in some countries, this initiative has already began where banks also operates the digital money in their operations. They can trade, buy and sell with digital currency in some of these countries. The world is evolving, and our financial sector cannot afford to be left behind. Banks need to upgrade their activities all over the world, so people can have the best and effective financial experience there is. Not only is it a good idea to promote the workspace of the banks but it also attracts more customers to the lucrative opportunity, yet it is also a good investment for the banks to embark upon.
This article is a pointer to the need for banks to upgrade their services to accommodate trading in the crypto space; this will expand their borders beyond their domestic shores and create a financially well circulated venture, an opportunity for all.
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