Cryptocurrency is Starting to Creep in on Banking Sector

Reports According to the American Bankers Association (ABA)

The American Bankers Association (ABA) recently released a new report based on a survey of 400 bank executives. The report details how many bankers have an interest in moving to crypto. It turns out that approximately 40% of bankers surveyed said they would consider switching to a career in cryptocurrency. The executive summary: The financial services industry is losing senior bank executives at an alarming rate to cryptocurrency startups.

The American Bankers Association (ABA) estimates that 40 percent of banking jobs will be lost by 2022 due to blockchain technology advancements and other disruptive innovations. Translation: it’s going to get worse before it gets better. Once banks stop issuing fiat currency, no one will be running traditional banks. At least not anyone with any institutional knowledge or experience running their own business.

The American Bankers Association’s President, Rob Nichols, recently left Goldman Sachs to join Coinbase. In a recent LinkedIn post, he said it was time to embrace the crypto-economy and a unique opportunity to build the next stage of digital evolution. Several top bank executives have already switched to crypto. This is a good sign for the industry.

Understanding Why Banking Execs Are Moving to Crypto

Being an executive at one of the big banks in America has its perks. However, it also comes with a lot of pressure to succeed and keep growing its bottom line quarter after quarter. In fact, according to an article from The Economist published earlier this year, 86% of American bankers are confident in their ability to do so.

But it seems some banking executives aren’t as optimistic about their ability to continue to grow their banks. Instead, they are choosing to jump ship and join the cryptocurrency industry. Soon, “essentially all assets will be in a digital format,” Bain & Company partner Thomas Olsen, who counsels financial institutions on crypto and other digital asset matters, stated.

Some Bank Executives That Have Moved to Crypto

A few notable bank executives have joined the crypto bandwagon. Former chief executives from major institutions have joined the industry, such as PayPal. Other prominent financial and technology leaders are also hopping on the crypto bandwagon.

JP Morgan recently opened a lounge in Decentraland, a virtual world based on blockchain technology. The report also outlines the potential opportunities for businesses in the metaverse. As the largest bank in the United States, JP Morgan is the first to jump on board. It’s hard to imagine a bigger role for the U.S. bank in this space.

Another recent example was the CEO of Citi’s global consumer banking arm, Morgan McKenney. He recently left the company to join the Provenance Blockchain Foundation. McKenney, who spent over 18 years at Citi, recently took a sabbatical from the company after realizing that digital assets are the future of finance.