By Laura K. Inamedinova
October 22nd, 2018

Crypto people and large corporations: a perfect match or a perfect disaster?

Crypto people and large corporations: a perfect match or a perfect disaster?

By Laura K. Inamedinova
October 22nd, 2018

The relationship between crypto figures and traditional corporations of banking and finance reminds me a proper rollercoaster: the sceptical opinions expressed publicly and negatively affecting the market of digital currencies last year could be seen as an expected beginning signalizing bumpy and complicated continuation.

On the other hand, this year brought quite important changes in the interaction between these two rivalling industries: more and more prestigious and influential institutions are adapting blockchain and crypto to some extent. It is only the beginning of the whole promising process – naturally, not everyone is accepting and perceiving this collaboration purely positively. There is still a potential of clash and mistakes of both sides; nevertheless, there are some communication tips and tricks which may help in avoiding additional struggles.

Positive experience can flow from both sides

It would be hard to deny that the rise of crypto has created a perfect environment for young and determined entrepreneurs. The growing popularity of disruptive technologies is definitely an advantage for millennials: they are both digitally savvy and quickly learning when it comes to unknown things, including tech. As a result, new entrepreneurs have managed to realize that with the sole help of digital innovations they would be able to challenge the system full of experienced people of finance and banking who had seemed to be unbeatable just a while ago.

However, the reality is slightly different: despite a more complicated process of self-adaptation in this relatively mysterious digital world, the current pioneers of business are far more experienced. This means that they are better prepared for critical situations and their potential solutions. In addition, most of them have overcome at least a few periods of financial hardship. Even though there is no universal way to fight with newly coming issues, the emergence of new technologies may not be likely to collapse old system. A more realistic outcome is the adoption of certain details in traditional industries. Blockchain is a good example of it, as a number of the most prominent investment banks, including Goldman Sachs, Bank of America or JP Morgan (which CEO was particularly negative about Bitcoin) have already started to use this technology.

What is the moral of this point? The cooperation between crypto entrepreneurs and large corporations should be massively encouraged. Even though some purposes of these groups are different, they are fully able to share their positive experiences: with the help of youngsters, traditional industries could become more digitalized, whereas new businesses might become less vulnerable with the advice of experienced business people.

A constructive dialogue would pay off

Crypto ideas were met with a bunch of scepticism. There were enough arguments for it: the legal framework of many projects was not fully clear at first; also, a number of scams took place, disappointing both investors and enthusiasts. Naturally, the primary impression of newborn startups was quite negative.

Many crypto people have experienced a long struggle while trying to prove that the ideas of disruptive form of payments and the development of blockchain regarding other industries would be worth attention. Eventually, the situation has really improved, but it is still far from perfect at the moment. Many governments are still unsure regarding the wider appliance of crypto, including the countries where similar activities are forbidden or strictly limited, as, for example, China and South Korea. Also, ordinary people who can become potential investors are unsure about the future of digital assets – it is not surprising that the bumpy start has contributed to that.

The cooperation with large companies could help crypto businesses not only to become more reputable in terms of project management, but also to develop the brand. What is more, having good terms with prestigious firms is beneficial considering the additional credits from governing institutions. Basically, lobbying and setting the agenda with larger private firms could help crypto projects to become more visible and considerable as appropriate forms of business.

All these things would be quite difficult to achieve without the encouragement of dialogue with large businesses. Crypto projects should demonstrate their own initiative to provide fair services and ensure a fully developed legal background. After this, the inter-communication with more sceptical large players should become easier.

To sum up, the interaction between crypto people and representatives of large corporations might not seem promising at first. There are many reasons for it – starting with the reputation of ICOs overall and finishing with the unhealthy competition between some people on both sides. On the other hand, there are a lot of prospects to ensure smooth and fruitful cooperation. The change of crypto environment itself mixed with the interest in more innovative technological approach expressed by traditional industries could create an excellent partnership, based on trust and sharing. All what is necessary there is mutual attempts to understand and learn.