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As crypto evolves, how should Banks approach CBDCs & stablecoins?

Banks must prepare for crypto or risk falling behind the competition 

The acceptance network for web3 and cryptocurrency is widening, with a growing number of financial institutions handling such payments. Crypto transaction volumes are growing faster than ever before, increasing 567% from 2020 to 2021, demonstrating the increasing opportunity open to banks that play a role in the crypto revolution. Central Banks around the world are developing digital versions of their national currencies, backed by government commitment, promising to bring many of the advantages of crypto but with the reassurance of low volatility.

While it may still seem like early days for crypto, research conducted by Banking Circle shows it is growing rapidly in popularity and the industry has been working hard to reduce risk by improving fraud and money laundering defences. Now is the perfect time for banks to get ready to engage with web3 and crypto, or they risk having to catch up later. Working with third parties as part of their ongoing digitalisation strategy will help banks prepare for the coming age of digital currencies.

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