Banks and cryptocurrency

Some people expect banks to derive much business value in the future from the use of blockchain-based cryptocurrencies. If so, it would mean tacit approval of cryptocurrencies as a legitimate option of the banks. What is your opinion about this?

‘Cryptocurrencies, if anything, are highly interesting and revolutionary, but they also suffer significant problems. In terms of technical problems, cryptocurrencies lack scalability, for example. In addition, the cryptocurrency space has a long way to go in terms of regulation. As a bank, we cannot take the risks accompanied with conducting business in such a highly unregulated space. Lastly, there is a distinct difference between cryptocurrencies and blockchain technology. One does not need the former to make use of the advantages that the latter may bring, ING does not facilitate buying, selling or investing in cryptocurrencies. And for the sake of clarity: ING does not trade in cryptocurrencies for its customer, nor are we trading them ourselves. However, we do recognize the traction and interest in the marketplace, so we closely follow developments and reflect on a possible future role for us in this space, but ING is primarily active in further developing the technology behind cryptocurrency, blockchain, and to use it to give clients more transparency and control.’

Supervision is an important reason that currently cryptocurrencies are not legal digital means of payment. For banks I see an opportunity to play an important role in this. Do you see the idea of integrating a cryptocurrency wallet into online banking as a solution to prevent anonymous transactions? And will there still be room for private individuals to manage their own crypto wallet?

‘Even if banks were interested in doing such a thing, it would not necessarily prevent anonymous transactions. There are many cryptocurrencies out there that allow for fully anonymous transactions. Regulating these currencies is hard, if not impossible. And, as I’ve stated earlier, ING currently does not facilitate buying, selling or investing in cryptocurrencies.’

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