2021 has been quite the year for cryptocurrencies. We have seen Bitcoin and altcoins like Dogecoin reach heights never before seen or anticipated. The rise in the value of cryptocurrencies has also been on the back of the once niche alternative currency being legitimised by payments networks and providers like PayPal and Mastercard. Now, cryptocurrencies have received recognition from one of the world’s leading core banking software providers Temenos.
The name Temenos is one that should be familiar to avid Techzim readers. Late last month Steward Bank announced a massive upgrade that would see it move to Temenos’ Transact T24 R19 core banking system. The very same company has announced that it will be supporting cryptocurrencies and digital assets in its next generation of the Temenos Transact software.
Temenos will be able to do this through integration with Taurus, a Swiss digital asset and blockchain infrastructure fintech outfit
“We believe that digital assets represent new opportunities for banks and wealth managers. Investors are increasingly aware of the performance of cryptocurrencies, which can effectively participate in the diversification of a portfolio. But other applications of blockchain technology, such as tokenized securities have the potential to transform the value chain with simpler issuance procedures, greater liquidity and real-time settlement. Taurus is leading the field in cryptography and blockchain technology. By joining forces, we can help banks to bridge the gap between traditional investments and digital assets.”Alexandre Duret, Product Director at Temenos
Taurus is able to do this because it recently acquired a Swiss Financial Market Supervisory Authority (FINMA) licence which will allow the fintech company to operate the first independent regulated marketplace for digital assets in the world.
“Digital assets represent a major shift in the industry and we see an acceleration in demand since 2020. We are pleased to collaborate with Temenos, the world-leading banking software, and be able to make available our technology to Temenos’ client base of more than 3,000 banks and financial institutions worldwide. Taurus end-to-end platform will allow Temenos clients to manage any digital asset and create products in a couple of clicks.”Sébastien Dessimoz, Managing Partner at Taurus
This announcement is definitely a sign of a shift, even before this announcement banks like Goldman Sachs, BBVA and DBS Bank had already started dabbling in cryptocurrency-based investments. With Tenemos now offering digital assets as part of its core banking software this will mean more banks around the world will at least consider cryptocurrencies and digital assets as part of their services.
However, in Zimbabwe, we seem far from that as the government and the Reserve Bank have been unwilling to introduce cryptocurrencies into the economy. That being said, it doesn’t mean that advocates and fans of digital assets are not going to try and convince the govt to begin taking steps into the future.
One such advocate is Prosper Mwedzi a financial services lawyer who is championing a Private Digital Assets and Cryptocurrency Bill. We got a chance to talk to Prosper earlier this year and you can listen or download that podcast with the link below.