Top financial institutions have changed their tune on crypto.
Although you might not know it from looking at the markets, crypto had a watershed month in February. A sequence of events accelerated the adoption of crypto far beyond the hopes of the most ardent supporters. When we look back at the story of crypto, February 2022 will stand out as a decisive turning point. Although they were hidden between headlines of global conflict and record inflation, the signs were clear for those watching closely.
It started in Canada, with Prime Minister Justin Trudeau cutting protesters off from their bank accounts – a historic act of currency weaponisation. The Russian invasion of Ukraine was next, with Putin effectively destroying the Russian economy and its sovereign currency. The United Nations’ response was to cut Russian banks off from the SWIFT global banking network in the second act of currency weaponisation. The result has been nations and institutions taking pause to question whether they own the digital money in their bank accounts. With state control of both currency printing and regulated banking, no one’s wealth is truly safe.
You need look no further than three of the world’s largest financial institutions to see the dramatic shift taking place – JP Morgan, BlackRock, and Goldman Sachs. With combined assets under management over $15Tr, their approval of the crypto asset class matters.
In 2017, JP Morgan’s CEO, Jamie Dimon, called Bitcoin a “fraud”. Even as late as 2021, he stated Bitcoin was worthless. Yet, in his shareholder letter at the end of 2021, Dimon said, “We believe there are many uses where a blockchain can replace or improve contracts, data ownership and other enhancements.” JP Morgan was ironically the first major bank to provide their wealth-management clients exposure to Bitcoin and crypto funds.
BlackRock is the largest investment fund manager globally, with around $10Tr in assets under management. Like Dimon, CEO Larry Fink dismissed Bitcoin as an “index of money laundering” in 2017. In stark contrast to his shareholder letter from February this year, Fink stated, “As we see increasing interest from our clients, BlackRock is studying digital currencies, stablecoins and the underlying technologies to understand how they can help us serve our clients”.
“The war will prompt countries to re-evaluate their currency dependencies”, he says, “even before the war, several governments were looking to play a more active role in digital currencies and define the regulatory frameworks under which they operate.” Dramatic words from the very top.
In 2020, Goldman Sachs declared, “Cryptocurrencies including bitcoin are not an asset class”. In March this year, Goldman Sachs executed a first, historical, over the counter options trade of Bitcoin. Following the purchase, Max Minton, Asia Pacific head of digital assets for Goldman Sachs, said, “We are pleased to have executed our first cash-settled cryptocurrency options trade with Galaxy. This is an important development in our digital assets capabilities and for the broader evolution of the asset class.”
The rapid shift in tone and attitude from the world’s financial elite tells an important story about how much faster crypto adoption might happen than we think. The world is changing, and it needs currencies that aren’t dependent on the decisions of politicians. Make no mistake, this is a financial revolution, albeit a peaceful one. Driven by innovation, technology, and social need, decentralised currencies are here to stay.
How do I get started?
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Revix brings simplicity, trust and excellent customer service to investing in cryptocurrencies. Its easy-to-use online platform enables you to securely own the world’s top cryptocurrencies in just a few clicks. Revix guides new clients through the sign-up process to their first deposit and first investment. Once set up, most customers manage their own portfolio but can access support from the Revix team at any time.
Remember, cryptocurrencies are high-risk investments. You should not invest more than you can afford to lose, and before investing, please take into consideration your level of experience, investment objectives and seek independent financial advice if necessary.
This article is intended for informational purposes only. The views expressed are opinions, not facts, and should not be construed as investment advice or recommendations. This article is not an offer, nor the solicitation of an offer, to buy or sell any cryptocurrency.
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