1、BANK ING ON CRYP TOCURRENCIESRiding the wave of uncertaintyI N PA R T N E R S H I P W I T H:2022CONTENTEXECUTIVE SUMMARY 31.IMPROVING FINANCIAL INCLUSION 42.CREATING A WILD WEST 63.CONTROL&MANAGEMENT 84.THE CULLING OF THE CRYPTO HERD 105.HOW SHOULD BANKS ADAPT?146.THE FUTURE OF CRYPTO 18CONCLUSION 2

2、2We would like to acknowledge Alina-Zoe Seitz for contributing to this Report.DR.GEORG VON PFOESTLPrincipal,Financial ServicesADR.FLORIAN FORSTPartner,Head of Financial ServicesCentral EGIRAY TURANDigital Assets&Blockchain Technology LeadGFT Technologies SEDOMINIK NITTNERPrincipal,Financial Services

3、Central ESASCHA BECKManaging Director,Financial ServicesGFT Technologies SEANDREAS EBNERPrincipal Consultant,Payments&Blockchain LeadGFT Technologies SE2Throughout their existence,currencies like the dollar,euro,and sterling have been issued and regulated by an overarching authority a privileged pos

4、ition of power held largely by governments,central banks,and even individual banks,at one time.Then,in 2009,a new form of money was born:the cryptocurrency.Unlike traditional fiat currencies,this was a digital asset without physical form no notes,no coins created by a technology called blockchain th

5、at has underpinned all the cryptocurrencies and non-fungible tokens(NFTs)that make up the world of digital collectibles ever since.The first of these cryptocurrencies was Bitcoin.Brought into being by the mysterious figure of Satoshi Nakamoto(probably not one but multiple developers),its aim was to

6、construct a“peer-to-peer version of electronic cash”that would“allow online payments to be sent directly from one party to another without going through a financial institution,”as Nakamotos original white paper described.1 Many believe that such peer-to-peer(P2P)payments have the potential to remov