How banks compete in the digital world has changed forever. Paritosh Gambhir elaborates on the growing market acceptance of cryptoassets, the rapid advancement of cryptocurrency technology, and the burgeoning participation of financial institutions in the this market.
Is it time for banks to get ready for virtual assets? Recently, His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of UAE and Ruler of Dubai, approved a first-of-its-kind law to regulate virtual assets in Dubai. An independent authority has also been established to oversee the regulation, licensing and governance of virtual assets, nonfungible tokens (NFTs), and cryptocurrency. The authority’s main responsibilities include regulating the issuance and release of virtual assets and NFTs, licensing, and protecting personal data, among others. Banks must ask themselves whether they are well prepared for this innovative regulatory release.
Institutional cryptoasset adoption is driving innovation in core banking products and services across custody, brokerage, trade clearing, settlement, payments, lending, and more. At the same time, a new operational infrastructure for banking is emerging, which has set the foundation for resilience and growth in a fast-changing industry.