Many C.E.Os who are in the finance sector especially the banking sector, fear cryptocurrency and have all the right reasons to be worried. One of bitcoins most appealing features is its decentralization, the fact that you know nobody has your money and no matter how much you have you can still safely keep it in your wallet either on your phone, laptop or a hardware wallet. This then makes you question what do you need a bank for when you can have millions on your phone instead of in a Bank that charges you banking fees, transaction fees and other fees that you are yet to understand.
A recent research note by Citi notes that Kenya is among the few countries in the world with highest per capita holding of Bitcoin. Kenyans have accumulated holdings of bitcoin estimated at more than Sh163 billion. Ok picture this you are a major shareholder in one of the biggest banks in Kenya and you get news Sh163 billion is in a digital currency. If you dont do something about it, then any business person understands that it is a risk to the survival of their business. The statements put out by banks are a scare tactic, if Bitcoin dint exist the Sh163B would be in the banks instead.
Perfect example of what panic looks like is how Goldman Sachs, an American multinational investment bank and financial services company that has been operational for 149 years, was doing in early 2017. The C.E.O and other top executives made public statements saying Bitcoin is a bubble, Bitcoin is for criminals and that Bitcoin should be worth a penny. Only for news to breakout on December 21, 2017 that Goldman Sachs would start trading bitcoins.
Shortly after on February 26,2018 Circle a startup backed by Goldman Sachs bought a cryptocurrency exchange Poloniex in a deal worth $400 million, well that's an expensive price to pay for a bubble. A company of its status surely did extensive due diligence on the cryptocurrency market and its future, if theirs companies and institutions that know more about crypto than anyone else its the banks. Spending millions researching on Blockchain and cryptocurrency as to know how to position themselves in this market.
Cryptocurrency as of today 29 MARCH,2018, its total market capitalization stands at $427 billion. View here.
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