Cryptocurrency, a regulation to attract banks

As Vishal Marria writes on Forbes, last month the UK’s Treasury Committee described the crypto-landscape as a ‘Wild West’ in desperate need of regulation, but also suggested that such regulations could position the UK as a hub for cryptocurrency trading and development. Regulation would remedy many of the issues that banks are currently facing, encouraging safe development of the crypto-space to the mutual benefit of consumers and institutions.
The blockchain is extremely valuable to banks. It is one of the most secure technologies that has ever been developed which means it can be profoundly useful in preventing money laundering and fraud. Every instance of transferred funds is recorded on the blockchain, meaning that, essentially, a flow of money can be tracked at any stage, making it extremely difficult for criminals to use cryptocurrencies as a means of laundering dirty money.
As a sector dominated by old and traditional institutions, the finance sector would be wrong to stifle innovation by rejecting cryptocurrencies, but it will need safeguards in place.