ABA urged US banks to cooperate with the cryptocurrency industry

The American Bankers Association (ABA) has encouraged banks in the US to partner with cryptocurrency companies. The association recommends that banks include BTC transactions in their financial plans.

According to
ABA experts, banks’ need for partnerships is associated with an increase in the profitability of the sector and an increase in customer interest.

“The cryptocurrency industry is developing rapidly. There is a diverse and complex ecosystem of companies offering access to digital asset products, ”the ABA report says. “The digital and programmable nature of these products means they can be used to facilitate many types of financial activities that increasingly reflect the products and services offered by traditional financial institutions.”

An alliance between a bank and a cryptocurrency firm will be beneficial to both parties. Through the use of blockchain technology, a transparent and decentralized tool for recording transactions, both financial and non-financial, will become available to banks. Blockchain-based payment networks will enable faster and more efficient international transactions. In addition, it will be possible to use blockchain to provide cheap and secure lending processes.

From the side of the cryptocurrency company, the benefits are also obvious – banks will provide a client base, as well as legal access to the international payment system for depositing and withdrawing fiat money.

Investment bank JPMorgan was the first to provide retail clients with access to Grayscale Investments crypto funds based on BTC, BCH, ETH and ETC, as well as the Osprey Funds Bitcoin Trust.