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Cryptocurrency sits in the future of finance as far as Generation Z is concerned.
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GOBankingRates’ Best Banks 2023 survey reveals that more than a quarter of Gen Z respondents think it’s important for their bank to partner with a cryptocurrency exchange or platform. rice field.
Cryptocurrencies experienced a major setback in 2022, but the outlook looks bright. Bitcoin briefly broke above $23,100 and is now up about 37% since the beginning of January. If more than a quarter of Generation Z see the potential of cryptocurrencies in the banking sector, what does this mean for the future of finance?
Opportunity to recognize digital currency
The global study Banking in 2035, sponsored by SAS, surveyed 500 banking executives from around the world on the trends that will shape the industry over the next decade.
Digitalization of financial services and adoption of emerging technologies topped the top industry opportunities cited by 55% of respondents. Closely following him in second place, at 49% of respondents, was the emergence of digital currencies.
Digital revolution is coming. Moreover, even if the sentiment among bank executives is one of cautious optimism, the disruption is being perceived as an opportunity.
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Next Crypto Iteration: A Hybrid of Web2 and Web3
What does this digital revolution look like within financial institutions? Marc Arbones, founder and editor of Altcoins Mastery, said the next crypto iterations will be Web2 (a.k.a. social media) and Web3 (blockchain, etc.). ) will be a hybrid. More institutions accept cryptocurrencies and offer them to their customers.
This is good news for millennials and Gen Z, as digital currencies are becoming more mainstream as an alternative investment. Arbones said traditional banking institutions and his Web2 are slowly accepting cryptocurrencies.
“I think we’re seeing the emergence of a combination of Web2 and Web3,” Arbones said. “It will take some time to move to a fully decentralized banking system.”
Banks should incorporate cryptocurrencies into their services
As Gen Z and millennials diversify their retirement portfolios with cryptocurrency investments, banks will need to pay more attention. CoinLedger co-founder and CEO David Kemmerer said it will be important for banks to integrate cryptocurrencies into their services.
“Gen Z is looking to integrate crypto as part of their investment and retirement plans,” he said. “Millennials and Generation Z have started investing in cryptocurrencies outside of traditional asset classes. The bank supports cryptocurrencies as a strategy to reach his millions of Gen Z customers. I have to find a way to do it.”
Most banks don’t sell cryptocurrencies directly, but some have already started supporting customers who want access to digital currencies. Ally, USAA and Chime are among him in the banks acting as intermediaries for cryptocurrency exchanges.
Will Banks Succeed By Offering Digital Currencies?
In a nutshell, yes. As banks partner with cryptocurrency exchanges, more funds will be held in crypto instead of cash, according to Kemmerer, a partnership of this type that he GOBankingRates has researched on Generation. It’s something Z would love to see as part of the banking experience.
Kemmerer said banks need to focus carefully on their ability to strike a balance between protecting customer privacy and combating financial fraud. The growth of cryptocurrencies in the banking industry may also be limited by regulatory concerns.
If banks can strike this balance and jump over the hurdles, they are more likely to succeed, said Kemmerer. Banks will be able to offer digital currency to their customers. This is an important service for more and more of his Gen Z who see cryptocurrencies as an investment vehicle.
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