Banks benefit from cryptocurrency:
- Banks can use public blockchains, including stablecoins, to speed up their payment operations, according to the OCC letter. When it comes to processing transactions, blockchain technology is a faster and less expensive alternative to clearing houses. If banks used blockchain technology, clearing and settlements could be completed much more quickly.
- Banks can assist bitcoin users with their security worries. Many users are concerned about personal wallets and exchanges being hacked. Well-known banks might help protect digital currency from theft or hacking, easing clients' concerns. Bringing cryptocurrency under bank oversight may reduce criminal activity and provide the impression that cryptocurrency transactions aren't safe to outsiders.
- Because the completion of the transaction is dependent on computer code rather than an individual's behaviour, there is a lower level of trust required between parties when entering into a smart contract arrangement. Banks could help to build trust by acting as a trusted third party for smart contracts such as mortgages, commercial loans, letters of credit, and other transactions.
