How banks are joining the crypto bandwagon, albeit reluctantly

cnbctv18.com:

Cryptocurrencies may have become commonplace in investment-related discussions, but the digital currencies have been struggling to gain acceptance from central banks and financial regulators in many countries.In India, for instance, the use of cryptos has been stiffly opposed by the Reserve Bank. In fact, in 2018, the RBI disallowed banks from dealing with crypto exchanges.

This meant that crypto investors faced hurdles in funding their crypto wallets via bank accounts or transferring crypto-related funds to their bank accounts. The ban was set aside in 2020 by the Supreme Court.However, recent global developments in the banking industry suggest the tide may be turning.

The crypto market has exploded with both the number of users and cryptos growing exponentially. Over 22 crore people used cryptocurrencies globally, per a July report by Crypto.com.

As these digital assets rapidly gain popularity, some banks that earlier warned customers against investing in cryptos are now looking for ways to help educate them and even provide crypto-related services.Also read: Russia proposes ban on use and mining of cryptocurrenciesJamie Dimon, head of the largest US bank JP Morgan Chase, has been among the most vocal critic of bitcoin, even calling it ‘worthless’ in October last year. This was despite reports suggesting the bank had, just months before, started giving its wealth management clients access to six crypto funds.

Earlier in May, when his bank was in negotiations with crypto firms to offer such funds, Dimon had said he still didn’t support bitcoin. But he conceded that “clients are interested, and I don’t tell clients what to do,” per a CNBC report.The growing demand from clients is one of the major reasons why banks are