Capacity of the global banking system for crypto-experts estimate to $1.2 trillion
Home News capacity of the global banking system for crypto-experts estimate to $1.2 trillion
Martin Hubmann –
About $1.2 trillion – that is, the potential growth capacity of crypto-Assets in the global banking system in the coming years. The experts of the ICOBox Blockchain Research Center (IBRC) based their estimate on the recommendations of international regulators of banks, which are interested in trading with crypto-currency Assets.
The Swiss financial market Supervisory authority (FINMA) recently, the maximum percentage of the crypto-Assets in the total capital of country banks: It should not exceed 4%. Switzerland is clearly to be one of the leading players in the crypto industry, which is seen by governments as a model in the management of banking systems. Because of this development, the approach of FINMA could also be the gold standard of other international financial institutions.
To be able to have the maximum volume of the global crypto-asset estimate was based, the experts of the IBRC on the annual Rating of the 100 largest world banks. They analyzed the Numbers of all credit institutions, which are in the crypto-currency market interesting Nations. The United States, Japan, South Korea, Switzerland and Australia. In this way, the experts came to $30,354 trillion. The estimated maximum volume of crypto-Assets, which is 4% of this sum does not exceed, accordingly, at $1,214 trillion. This calculation excludes China, although the banks of this Asian state will occupy the first four places in the Rating. The Chinese authorities have, in fact, in the last time very hostile to crypto-currencies and ICOs.
“This number, $1.2 trillion, it allows us, the potential volume of crypto-Assets in the global banking system over the next 2-5 years to assess. With a current market capitalization of $223 billion in the crypto market will need some years to have this amount of capital. And if it’s all the banks in the world suddenly would be possible to hold up to 4% in crypto-Assets on their accounts, this would lead perhaps to the “resurrection” of Bitcoin”,
Anar Babaev, a founder and managing partner of ICOBox says.
IBRC-experts are of the opinion that further factors are the development of crypto currencies and the Blockchain-industry could provide Momentum. One of these is the expected market entry of institutional investors and large companies. These have consummated their IPO, however, the step in the direction of the Blockchain and in the direction of the shift of the development of the digital currency market as a way of Utility Tokens and ICOs and security Tokens, Security Token Offerings (STOs) and Composite Token Offerings (CTOs) (i.e. sales of the “universal” Tokens, which combine the best features of Utility and Security Tokens) are not yet dared. The market will also increase in stability, and will be for the actors more attractive, as soon as highly developed, legal, regulated products will be presented. As soon as they occur to predict, we can expect a second boom in the crypto market, and this trend has the Potential to be global and of long duration. And at this time, it will be clear whether the market fits within the specified 4% or whether it exceeds this limit.