It’s no stretch of the imagination to expect that you will soon be able to buy and sell bitcoin through your local bank. Bitcoin, ethereum and other cryptocurrencies are usually traded in SA through exchanges such as Luno and Ice3x, but their spectacular rise through 2017 means they have become too mainstream for banks to ignore. Offering virtual-currency broking services would be one way for financial institutions to ensure they are not usurped by the burgeoning shadow banking system. Innovative banks in other parts of the world are already testing the waters. Last year, Switzerland’s Falcon Private Bank said it would provide "blockchain asset management solutions" for its clients, allowing them to exchange and hold cryptocurrencies. Local financial institutions — which punch above their weight when it comes to innovation — are no doubt considering their options. "Banks getting involved is inevitable, and good for the crypto space — it should raise the bar on KYC [know your custome...
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