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Bitcoin may pose a threat to financial institutions

Monday 30 March 2015 10:55 CET | News

Cryptocurrencies continue to threaten revenue streams of the traditional banking system, a new report reveals.

According to a study from the British Banking Association (BBA), cryptocurrencies look like becoming ubiquitous challengers to more familiar, established currencies. And, as they grow in popularity, so too will the risks for banks.

The report goes on to emphasise issues presented and faced by Bitcoin, including its volatility, its perception as a haven for illegal payments activity and its relatively low market cap. However, the report concedes that the risks presented to the banking system by bitcoin should not be ignored.

The BBA believes it is important for banks to take action now, investing time and energy in understanding how best to use the technology behind Bitcoin.


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Keywords: Bitcoin, online payments, digital payments, cryptocurrencies, mining, financial institutions
Categories: DeFi & Crypto & Web3
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Countries: World
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DeFi & Crypto & Web3