Traditional financial institutions are increasingly embracing cryptoassets, and it is predicted that these digital currencies will become a common part of investors’ portfolios within five years. Safety and regulation must be key focuses for this transition to occur.
The remarks were not made by a cryptocurrency enthusiast, but rather by the CEOs of the top private banks in the country at the 26th Annual Conference Santander CIB on Wednesday.
CEOs are influenced by customer demand in their favorable stance towards the crypto market. The increasing interest from clients and investors has motivated executives to prioritize meeting their needs. However, there is still an opportunity for banks to join the digital asset space, offering a more secure and regulated environment.
The Drex, the digital currency of the Central Bank, is viewed as a significant advancement towards regulating cryptocurrencies in the nation and is supported by banking institutions.
The crypto industry’s banking timetable will be determined by stablecoins, cryptocurrencies, and regulations, focusing on Drex and other initiatives supported by the Bank.
Leo from Santander emphasizes the importance of increased proactivity and coordination within the industry to combat fraud and cybercrime, working alongside organizations like Febraban and the National Confederation of Financial Institutions. Leo believes that while innovation is crucial, it should be balanced with a focus on security and protection against operational and cyber risks, citing a recent hacker attack on reserve accounts by the Central Bank as a reminder.
Cryptocurrencies are expected to become more common in financial transactions and products, according to the CEO of Santander, who also envisions tokenized contracts being used in various processes like vehicle financing and real estate transactions within the next decade.
Sallouti from BTG stated that he always believed in blockchain technology and tokenization, but emphasized that their success hinges on regulatory considerations, which can sometimes be excessively strict and place banks at a competitive disadvantage.
Maluhy Filho, from Itaú, believes that the banking system’s “future” has already started. The CEO of the biggest Brazilian private bank highlighted that banks are increasingly confident in the growth potential of technologies such as asset tokenization.
