[2021-11-08] Vikram Pandit Says All Big Banks Will Think About Crypto Trading

[NeuroticFish]

First they ignore you,
then they laugh at you,
then they fight you,
then you win.

Vikram Pandit Says All Big Banks Will Think About Crypto Trading
The original source, Bloomberg, is asking for money, so I won't back link them.

Soo... this guy is

chairman of The Orogen Group and former chief executive officer of Citigroup Inc

and what he's telling is that

one to three years, every large bank and, or securities firm is going to actively think about ‘shouldn’t I also be trading and selling cryptocurrency assets?’

Of course, this is not coming as a shock for us , we were expecting that at some point they will stop fighting and come where the money is.
Still, it's nice to hear it on the big media channels and said by somebody from basically the banking system.
Also "every large bank and, or securities firm" is big deal. It means that there won't be just a very few.

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[DaveF]

From what I said last week about American Express and BTC:

So, I can see why they are going to be a bit slower to bring BTC / crypto onboard. He didn't say no, he just said not soon. As in let everyone else figure it out 1st.

Everybody wants to do it. Nobody really wants to be 1st and fall on their face. Once someone takes the lead all will follow. But getting that 1st major institution out there is the issue.
Let the other guy make the mistakes with their time and money.

-Dave

[NeuroticFish]

From what I said last week about American Express and BTC

I've missed that topic, since it's created by a shill/spammer who just keeps posting back links to a certain website. But although I see it as spam, it's by the rules as I know them, so I don't have what to report...
You're right, they indeed were waiting for some bigger ones to test the waters. But aren't the waters already somewhat tested by PayPal or JP Morgan? Or we can only say that both just built fences around their part of the pond and started fishing without actually touching the waters (i.e. somebody has to actually start doing the real deal)?

[DaveF]

I would say that they are not fencing off a section of the pond, but dug a canal to a different pond.

I think this could go one of 2 ways. 1st is a 'medium' sized bank that wants to be a bit more aggressive in getting into the crypto market goes out and builds their own infrastructure and starts pushing it.
OR
One of the big players. BoA / Citi goes out to a company like Gemini and says "nice place, how much do you want for it" Here is your check, now replace all of your logos with ours.

If it all goes well they have bragging rights and the advantage of being the first to do it. If for whatever reason it does not, the medium sized bank licks their wounds and moves on. The big bank writes it off as a bad expense / investment and the company they bought just ceases to exist.

As Vikram Pandit said in the article you linked, it's going to happen. How will it happen is the question. I really only see those 2 options.

Well the distant 3rd is they partner with Gemini / Coinbase / etc. and just have portal, but banks for the most part REALLY don't want their (your) money flowing to other people, they want to keep it in house.

-Dave

[NeuroticFish]

and says "nice place, how much do you want for it" Here is your check, now replace all of your logos with ours.

This is what I was also expecting as a first move, hence Mastercard move took me by surprise. But it's my fault, I forgot that they've been preparing the grounds for this for some time.
And while they are not a bank (imho they're much more), they did partnerships.

So now I actually expect all 3 directions you presented have pretty much the same chance to happen - depending on the bank, all 3 strategies are good and to be considered.

Edit: I've just read today, although it's a bit older: The Largest Crypto Exchanger in Thailand has been acquired by Commercial Bank so indeed, the things are on the move. And pretty fast!

[bbc.reporter]

Similar to the hype during 2017’s traumatizing bubble pop, I think that this is a time to begin becoming more cautious and skeptical. We have also heard Gandhi’s quote being shared during the peak of the hype of 2017.

I speculate another big pump for bitcoin then big dump to start the beginning of the bear market.

[stomachgrowls]

Of course, this is not coming as a shock for us , we were expecting that at some point they will stop fighting and come where the money is.
Still, it's nice to hear it on the big media channels and said by somebody from basically the banking system.
Also "every large bank and, or securities firm" is big deal. It means that there won't be just a very few.

Not actually a shocking thing because they've been fighting off crypto for how many years now and didnt still end up on things that they were supposed to expect but instead recognition and adoption do increase further more.

Just like a certain bank on my country where they are the only ones who do accept crypto transactions in terms of fiat-crypto and it did really end up
their revenue had increased for hundred millions of dollars in a matter of year and which is way more higher than on last 2 years
which i could eventually say that there's indeed money and its really a wise move made by them.

[NeuroticFish]

Just like a certain bank on my country where they are the only ones who do accept crypto transactions in terms of fiat-crypto and it did really end up
their revenue had increased for hundred millions of dollars in a matter of year and which is way more higher than on last 2 years
which i could eventually say that there's indeed money and its really a wise move made by them.

Exactly. And I guess that you know that the other banks know - or can find out - these details, especially when they see that the revenues have increased greatly.
They are scared because the legislation is not clear and it's something new and maybe even too techy for them, but at the end greed will make them research deeper and make the move towards crypto.

[cr1776]

Just like a certain bank on my country where they are the only ones who do accept crypto transactions in terms of fiat-crypto and it did really end up
their revenue had increased for hundred millions of dollars in a matter of year and which is way more higher than on last 2 years
which i could eventually say that there's indeed money and its really a wise move made by them.

Exactly. And I guess that you know that the other banks know - or can find out - these details, especially when they see that the revenues have increased greatly.
They are scared because the legislation is not clear and it's something new and maybe even too techy for them, but at the end greed will make them research deeper and make the move towards crypto.

It is like the "who is going to get in the water first" and then all of a sudden once one person (or bank in this case) gets in and doesn't get eaten by piranhas, so a few more get in, and then when those couple aren't eaten by alligators, then 100s of people get in.  It is just a matter of time for more entities in more countries to get in.  Particularly if inflation continues like it was announced in the US yesterday.  People will come to the conclusion that they need to protect themselves and their companies and the banks will see that it is a market that is profitable.

[stomachgrowls]

Just like a certain bank on my country where they are the only ones who do accept crypto transactions in terms of fiat-crypto and it did really end up
their revenue had increased for hundred millions of dollars in a matter of year and which is way more higher than on last 2 years
which i could eventually say that there's indeed money and its really a wise move made by them.

Exactly. And I guess that you know that the other banks know - or can find out - these details, especially when they see that the revenues have increased greatly.
They are scared because the legislation is not clear and it's something new and maybe even too techy for them, but at the end greed will make them research deeper and make the move towards crypto.

It is like the "who is going to get in the water first" and then all of a sudden once one person (or bank in this case) gets in and doesn't get eaten by piranhas, so a few more get in, and then when those couple aren't eaten by alligators, then 100s of people get in.  It is just a matter of time for more entities in more countries to get in.  Particularly if inflation continues like it was announced in the US yesterday.  People will come to the conclusion that they need to protect themselves and their companies and the banks will see that it is a market that is profitable.

Wont believe that it would really be having that impression about being techy because they arent that dumb and it does only require very basic understanding on how crypto works.It is true that this is

really something in compared on whose gonna test out the water first and everybody would tend to jump in if they do saw that nothing happens or didnt really put any harm.This is actually
a matter of regulation restriction on each place or country and not all would really be having the same impression.

Some might accept it and some do still in hesitant because the legislation isnt clear yet just like on what Neuro said above.

[timerland]

I don't think that this was ever a question.

We knew from the beginning that institutions are going to jump on the bandwagon as soon as cryptos take off a bit, because they are in the business of making transactions. They couldn't care less what sort of transactions they are making the market for.

But what actually matters is whether they adopt it into their own proprietary assets. E.g. purchasing BTC, and holding it long term.