Young talents are quitting their jobs to get rich in Bitcoin, something which is causing a talent drought in major banks. Many young bankers are now preferring to invest in cryptocurrencies rather than spending their times in offices in the name of employment. According to Ahmed, a young banker who quit his job, “The one-day volatility of my portfolio is higher than my salary, so if I get a few investments right then I’ll have made the same as my yearly wage.”
Many large banks like Goldman Sachs have lost promising talents to digital currencies. Most of this youth are using their savings to start their own crypto companies to earn profits. A good example is Ahmed launching his own crypto fund to help with environmental and social issues. Another example is Adrian Xinli Zhang. He was working at Deutsche Bank and was about to become a director. Zhang quit to build a crypto trading platform.
Dealing With Crypto Volatility
Digital currencies. like Bitcoin. are very volatile. This is causing sleepless nights to banks despite the fact that they do not often comment on the issue. The problem with banks is their very slowly reaction to the emergence of digital currencies. This means they are building their teams to tackle cryptocurrency late, and thus missing out on the new generation of workers.
Banks find it very hard to plan well in such a volatile field since the crypto sector is highly unregulated. Additionally, it’s not easy to know the identity of most crypto traders, and therefore fraudsters can use it easily. This scares banks away.
There is a divide between financial institutions on the issue of digital currencies. Most of them are deciding to go study and use the underlying blockchain technology. In the meantime, as they work their heads around on how to deal with digital currency, they continue to lose their future managers and the best talents they currently have in the emerging markets. Cryptocurrency now remains the biggest challenge to banks.