Wessels was responsible for leading HSBC’s corporate and investment banking business in the country, including the payments and cash management business.ITWeb asked Wessels, as someone coming from the traditional banking environment into the new world of crypto, about the differences between the two financial services platforms. He says running a bank and a crypto exchange are “fundamentally different” especially in regards to their risk appetites.
“That’s the main difference but in both cases, settlement and custody are very important factors. It’s important that when you work for a bank, the money is curated or debited from your account promptly, and the same thing happens on a crypto exchange.”“That’s part of the attraction of the technology; and the custody part is the most important bit. You can’t run an exchange without having custody.
South African banks have over the years been hesitant to work with crypto-currency exchanges, citing the risks they present. While crypto-currency exchanges are thriving, he does not believe the new financial players will eventually replace banks in future. “I don’t think there will be a day where we will have fiat money and the next day we don’t. I think there will be a transition period.”CBDCs are the digital form of a government-issued currency that is not pegged to a physical commodity.