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So let's go back in time to 2015, when Bitcoin enthusiasts gathered in modest venues, passionately discussing blockchain technology over a few drinks. Back then, traditional banks categorically rejected any association with cryptocurrencies, regarding them as a financial aberration to be avoided at all costs. In this hostile environment, crypto entrepreneurs struggled to obtain even a simple bank account, facing account closures and widespread distrust.
Yet, in the space of just a few years, the game has changed radically. Here we are in 2024, where renowned financial institutions like Société Générale are opening up to talent from the crypto ecosystem, recruiting experts from Coinbase and other renowned platforms. Major US banks, such as Merrill Lynch and Wells Fargo, are now offering Bitcoin-backed financial products, such as ETFs, to their clients. Even in Germany, a conservative financial bastion, banks such as Commerzbank have obtained licenses to operate in the cryptocurrency space. In France too, partnerships between traditional banks and crypto custodial services are being announced, signaling a thoroughly radical change of direction.
How can we fail to note the gradual normalization of the crypto sector, which is now considered a legitimate player on the global financial scene? Just take a look at the crypto mass events that are now taking place in prestigious venues, where Bitcoin is perceived as a financial asset in its own right. Yet behind this façade of success and integration lie deep-seated tensions and questions.
Indeed, this idyll between crypto and traditional finance is arousing its share of skepticism and criticism. Some denounce the greed behind this alliance, accusing crypto players of sacrificing their ideals on the altar of financial pragmatism. Others see it as a form of betrayal of the founding values of cryptocurrency, which originally advocated emancipation from traditional financial institutions. Is BNP Paribas joining forces with Metaco? Crédit Agricole with Taurus? Many see this as a betrayal of sorts. These tensions reflect the moral and philosophical dilemmas facing market players, torn between idealism and realism.
Beyond appearances, this convergence between crypto and traditional finance responds to fundamental economic imperatives. Strict regulations imposed by financial authorities have forced crypto players to align themselves with prevailing standards, in order to guarantee their survival and legitimacy. These regulations, while perceived as impediments by some, have also helped to professionalize and stabilize the sector, subjecting it to heightened standards of transparency and security.
However, the few voices that are being raised, such as that of the European Central Bank, predict that this standardization of the crypto sector will not be without consequences. By aligning themselves with the standards of traditional finance, could crypto players risk losing their disruptive character and ability to innovate? It goes without saying that regulatory constraints and compliance requirements may stifle creativity and limit the sector's expansion. What's more, this convergence also risks reinforcing the chokehold of the banking giants on the global economy, consolidating their dominant position and hindering the emergence of a genuine financial alternative.
In a previous article, we talked about the notorious instability of Bitcoin: what will happen to the balance of power in the global economy if crypto-currencies are fully integrated?
It remains to be seen how this complex union will evolve over the coming years, and what the long-term consequences will be for the financial system as a whole.
