According to research, more than $40 billion of the last round of COVID stimulus checks was spent on the purchase of Bitcoin and stocks. Furthermore, it looks like up to 10% of the current round of stimulus money will be spent on the same two assets. A decade ago most people were assuming cryptocurrencies would be a flash in the pan, and today banks and other financial institutions are still keeping their distance. But the consumer is telling a different story and the financial institutions that learn how to use this new currency to their advantage stand to benefit in the long run.
Not all banks are anti-crypto, but most of the biggest names are. Banks like JP Morgan Chase, Bank of America, Wells Fargo, and many more have yet to dabble in the crypto business. That said, a few big banks have opened their minds to this new currency, Goldman Sachs, Ally Bank, USAA among them.
In a world where most of the biggest banks are still shunning crypto, yet billions of dollars are invested in the currencies, small community banks have a huge opportunity. Cryptocurrency isn’t going anywhere, in fact, to date, there are over 4,000 cryptocurrencies on the market. Certainly, there is no reason to engage with that many cryptocurrencies, but the largest coins like Bitcoin and Ethereum aren’t going anywhere.
Small banks are the heart of their community. They are trusted, local resources in times of need and where people go for consistent, individualized service. It’s hard to compete with the huge bank down the road until you realize that those banks have unintentionally left space for small banks to flourish. When it comes to cryptocurrency, it makes sense for customers to turn to community banks. When we provide these extra business opportunities we become essential elements of our communities.
Ultimately, our ability to grow and thrive in any environment is the marker of small businesses. Whether you’re running a community bank or a community theater, it pays to have the intuition and willingness to take calculated risks on behalf of your clientele.
When I first brought cryptocurrency to my team at the Surety Bank it was not universally or immediately accepted. It was a risk, but one that has paid off. The world is changing quickly and significantly, and the institutions (financial and otherwise) that are agile enough to pivot with those changes.
If you are thinking about utilizing cryptocurrency for your business transactions or other applications, I encourage you to explore working with a community bank that has the experience. You are not treated like a number as with large institutions. You are treated with the utmost service and support.
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