People who believed in cryptocurrencies back then were rare since most of the people were skeptical. Now cryptocurrencies are getting widely more accepted.
There was a lot of skepticism around cryptocurrencies
The Billionaire and CEO of Berkshire Hathaway Warren Buffett slammed Bitcoin a couple of times. In 2018 he said that cryptocurrencies would come to a bad ending. Just recently in February of 2020 in an interview for CNBC Buffett continued criticizing cryptocurrencies stating that they have no value whatsoever. He further said that he does not own any of the cryptocurrencies and will never do so. Buffett was not a fan of Gold either, but recently he changed his mind on Gold investment, and many people think that he might do the same with Bitcoin.
JP Morgan goes from criticizing cryptocurrencies to launching their stablecoin
The CEO of JP Morgan Jamie Diamond called Bitcoin fraud, and he said that it would eventually blow up. He was quoted saying “It’s worse than tulip bulbs. It won’t end well. Someone is going to get killed”, back in 2017 during an interview for CNBC. But then just a year later speaking for Fox News Dimon said that he regrets calling Bitcoin a fraud. Suddenly in 2019, JP Morgan launched their stablecoin JPMCoin diving surprisingly in the crypto space as their CEO criticized cryptocurrencies before.
In May 2020, JP Morgan went further accepting Coinbase and Gemini as clients providing mainly cash-management services to the exchanges. And, “handling dollar-based transactions for their U.S.-based customers, including processing deposits and withdrawals, through the Automated Clearing House network, and wire transfers”.
Following this event, the cryptocurrency expert Ivan On Tech sarcastically tweeted: “2017: JPMorgan declares Bitcoin a scam. 2020: JPMorgan works with Coinbase. JPMorgan works with Gemini. JPMorgan invests in Consensys. A lot can happen in 3 short years”.
In 2019 Deutsche Bank predicted a future where cryptocurrencies replace fiat
In December 2019 Deutsche Bank did a report called “Konzept-Imagine 2030” where they suggested that digital currencies can eventually replace cash one day. The first chapter is called “The end of fiat money?” where it says that with the fiat currency it is politically tempting to print money to meet government needs in tough economic times, thereby increasing inflation and affecting the purchasing power of certain currencies. Cryptocurrencies are made to be deflationary, and this is impossible to happen.
Further on the second chapter of the report, it says that cryptocurrencies may gain traction in the next few years.
“As we look to the decade ahead, it would not be surprising if a new and mainstream cryptocurrency were to unexpectedly emerge”, says on the report. Furthermore, Deutsche Bank joined JP Morgan blockchain network.
Deutsche Bank is one of the biggest banks in Germany and the fact that they predict that cryptocurrencies could disrupt the financial world in the future shows which way the cryptocurrency industry is going.
Bitcoin has caught the attention of banks and financial institutions
It hasn’t been even a year since Deutsche Bank made its predictions and many banks around the world have started to jump into the cryptocurrency by launching their stable coins. Following the increased demand among younger people for cryptocurrency services, the swiss bank Basler Kantonalbank decided to launch its cryptocurrency services by offering its clients a solution for trading and depositing selected cryptocurrencies.
Also Russia’s biggest bank Sberbank launched its stablecoin just after the president of Russia Vladimir Putin signed the DFA bill into law, giving cryptocurrencies a legal status there.
Further, major South Korean Bank KB Kookmin Bank partnered with blockchain venture fund, Hashed, and crypto trading platform, Cumberland Korea, to build strategic technology partners as we go through the new era of digital transformation and a blockchain expansion.
These are just three examples among many other banks expanding their cryptocurrency services. Moreover, these events are not happening by chance. Banks know very well what they are doing, and the fact that they recognize cryptocurrencies more shows that the future of cryptocurrencies is bright.
There has been criticism about cryptocurrencies, but it is precisely those critics who are investing in crypto now. The forecast of Deutsche Bank can not be taken as incidental because a bank would never say something unaware of it. The fact that many banks have started to join the cryptocurrency world in various forms, it is an indicator that cryptocurrencies will have a much bigger impact on finances and money in the future.