The emergence of derivative contracts cryptocurrencies : a growth driver for banks ?

Abstract

Money is probably the most impactful innovation through years, it can make us or it can break us. For thousands of years, it has been constantly evolving: barter, metal coins, gold, fiat money, scriptural money, etc. In 1999, a first concept of cryptocurrency is imagined. This new phenomenon intrigues and makes front pages of the biggest newspapers in the world.

This research is built and written step by step starting first with an understanding of the assets for which it is question of investing in as well as the computer network, the blockchain, behind it. Various examples of use of the blockchain in the banking sector will also be taken up because the assumption that the blockchain could also be a growth driver for banks will be studied.

Then, after having understood these concepts, we will look into the emergence of derivative contracts on cryptocurrencies. What is the feeling of stock exchanges? Banks? Regulators? By which ways can we invest in derivative contracts on cryptocurrencies?

Finally, after having studied the banks' feelings and after having calculated a price on a Bitcoin call and put options that a bank could offer, I will conclude by answering to the main and intriguing question of this thesis : « the emergence of derivative contracts on cryptocurrencies : a growth driver for banks? »

By reading this research, you will understand new and innovative concepts and how to explore the possibility for banks to adapt themselves once again in an ever-changing world.