Corporate clients who embrace crypto may soon have a decision to make if they intend to keep their working relationship with Natwest. Morten Friis, the head of the bank’s risk committee, revealed in no uncertain terms that Natwest will be unable to do business with customers that accept cryptocurrency payments.
Is this a big blow for crypto? Well, not really as crypto and banks don’t really go together. It’s great news when a major company decides to hold Bitcoin on their balance sheet but at the same time it is important to remember the roots of crypto and essentially it is for the masses, not the already wealthy. Friis made the companies views known in a statement on Wednesday.
“We have no appetite for dealing with customers, whether taking them on as new clients or having an ongoing relationship with people, whose main business is backed by an exchange for cryptocurrencies, or otherwise transacting in cryptocurrencies as their main activity.”
These comments echo those made by HSBC. Another huge bank in the UK that barred customers from buying MicroStrategy stock. Friis says that this move shows a need to proceed with caution regarding crypto considering the ever-changing landscape. He did say that the bank will continue to monitor the revolution of cryptocurrencies.
This appears to be not an all-out condemnation of crypto but rather a need to protect themselves from an industry that has now reached over 2 trillion and has the potential to have one of the greatest collapses in financial history. Of course, crypto lovers like ourselves do not believe this will happen, we believe the opposite but what we want to really discover is if mass adoption really serves the purpose of crypto.
At first glance banks accepting crypto appears to be bullish news but we need this money to be decentralized and if a bank holds your crypto it is no longer that. Therefore in the meantime, we should embrace the companies who embrace crypto and embrace even more those who don’t as they are the reason this exists in the first place!