The Advent of Crypto Banking

Contents
INTRODUCTION ...................................................................................................................................................... 1
1 MONEY’S EVOLUTION .................................................................................................................................... 2
1.1 CRYPTO INSTRUMENTS – THE NEW MONETARY INSTRUMENT ................................................... 2
1.2 CRYPTO CURRENCIES – THE MOST FRICTIONLESS FORM OF MONEY ...................................... 4
2 CENTRAL BANKING REIMAGINED ................................................................................................................ 6
2.1 CENTRAL BANK ISSUED CRYPTO CURRENCY – THE THIRD FORM OF MONEY ......................... 6
2.2 BENEFITS FOR CENTRAL BANKS AND REGULATORS .................................................................... 6
2.3 SOVEREIGN BLOCKCHAINS – THE IMPENDING CENTRAL BANK PLATFORM ............................. 7
2.4 THE TRANSITION TO CRYPTO BANKING .......................................................................................... 9
2.5 A WORD OF CAUTION ........................................................................................................................ 12
2.6 THE IMPORTANCE OF REGULATORS .............................................................................................. 14
3 COMMERCIAL BANKS IN A NEW WORLD .................................................................................................. 15
3.1 THE BANKING DILEMMA .................................................................................................................... 15
3.2 VALUE STORAGE ............................................................................................................................... 16
3.3 VALUE TRANSFER .............................................................................................................................. 16
3.4 VALUE PROVISION AND PROTECTION ............................................................................................ 17
3.5 TRUST IS HERE TO STAY .................................................................................................................. 18
CONCLUSION ........................................................................................................................................................ 19
APPENDIX: CENTRAL BANK MANDATES AND TOOLS .................................................................................... 21
DISCLAIMER .......................................................................................................................................................... 22
The Advent of Crypto Banking