Are you prepared for the future? This is what banking with cryptocurrencies will look like in 2024
Generative artificial intelligence, the key to personalization and innovation
Generative artificial intelligence is a branch of AI that is based on creating new and original content from existing data. This technology has enormous potential for the financial sector, as it can offer more efficient, innovative and personalized solutions to clients. For example, chatbots with generative AI can communicate with users in natural language, answer their questions, offer them personalized financial advice, and recommend tailored products and services. Some of the banks and financial institutions that are already using or plan to use generative AI are Bank of America, Wells Fargo, BlackRock and Citigroup.
Generative AI can also help create new sustainable financial products, allowing customers to ensure that their money is not used to cause harm to the environment or society. These products can be based on ESG (environmental, social and governance) criteria, which measure the impact of investments in these aspects. Generative AI can analyze company and project data and generate reports and certificates attesting to their compliance with ESG standards. Thus, clients can choose to invest in ecological, social and ethical initiatives, and obtain both economic and social benefits.
Digital currencies and cryptocurrencies, the new paradigm of money
Digital currencies and cryptocurrencies are forms of electronic money that are based on blockchain, a technology that allows transactions to be created and recorded in a decentralized, transparent and secure way. These currencies have the advantage of eliminating intermediaries, reducing transaction costs and times, and offering greater privacy and freedom to users. However, they also have risks, such as volatility, lack of regulation, and exposure to cyber attacks.
In 2024, digital currencies and cryptocurrencies are expected to gain more prominence and acceptance in the financial world. On the one hand, more than 130 countries are investigating or adopting central bank digital currencies (CBDC), which are issued and supported by the monetary authorities of each country, and which seek to complement or replace fiat money. . Some of the countries that have already launched or are planning to launch their CBDCs are China, Russia, Sweden, France and the United States.
On the other hand, cryptocurrencies such as Bitcoin, Ethereum or Litecoin, which are created and managed by networks of independent users, are also attracting more interest and investment from individuals, companies and institutions. One of the milestones that will drive this phenomenon will be the approval of the Bitcoin Spot ETF (Exchange Traded Fund), which will allow investors to access the Bitcoin market through exchange-traded funds, without having to buy or store the cryptocurrency directly. . This will facilitate the entry of institutional investors, who will bring more liquidity, stability and confidence to the Bitcoin market.
Traditional banks, faced with the challenge of adaptation and competition
Traditional banks are aware that digital currencies and cryptocurrencies are a threat and an opportunity for their business. Therefore, they are trying to adapt and compete in this new scenario, offering their clients the possibility of accessing, managing and investing in these currencies from their platforms. Thus, banks hope to attract and retain customers who demand these services, and generate new sources of income from commissions and fees.
However, this process is neither easy nor quick, as it involves overcoming several obstacles and challenges. On the one hand, banks have to comply with the regulations and regulations of each country, which can be very different and changing, and which can limit or restrict their operations with digital currencies and cryptocurrencies. On the other hand, banks have to invest in technology, security and training, to be able to offer these services effectively, safely and professionally. In addition, banks have to face competition from other financial entities, such as cryptocurrency exchange platforms, fintech or bigtech, which also offer these services, and which may have competitive advantages in terms of innovation, agility and costs.
