Challenge Description: 

UPDATE: (10/21/2014): This challenge is now near completed. 35 experts contributed and a team of 4 finalized the study. A summary of the results will be available shortly.The full report can be purchased by contacting Yegii. Additionally, a set of relevant knowledge assets are freely available to browse, see Bitcoin knowledge assets.

Analyze the impact of bitcoin and other cryptocurrencies on banks and devise a strategic course of action. Take other emerging payment systems into account.

The dream team would be multidisciplinary: a bitcoin expert, a management expert, a project manager, a data scientist/scientist/engineer, a banker, an academic, and a student with lots of energy, ideally from different continents, and to include both believers and skeptics. If you have any of these skills (or other skills we should have highlighted), respond to the challenge and compete to join the small team of collaborators.

To become involved, one must follow two simple steps. The first is to register as and identify your experience as an expert on the platform here: http://www.yegii.com/expert/register. The second step is to submit an initial response to how one would approach the impact of bitcoin on banks here: http://yegii.com/challenge/bitcoins-impact-banks-265

Client: 
Multi-client study
Budget: 
$5 000
Industry: 
IT
Stage One
Stage One Deadline: 
Tuesday, September 2, 2014
Stage One Question: 

How would you approach the question of the impact of bitcoin on banks?

Stage Two
Stage Two Deadline: 
Wednesday, September 17, 2014
Stage Two Question: 

Briefly outline the top 3 challenges cryptocurrencies bring to banks. If possible, reference your answers using existing Yegii knowledge assets (see Yegii Financial Index: http://yegii.com/financial-index or use free text search). Alternatively, please upload new Yegii knowledge assets to support your argument.

Stage Three
Stage Three Deadline: 
Friday, October 10, 2014
Stage Three Question: 

i) Explain how bitcoin and other cryptocurrencies work.
ii) Synthesize what benefits they bring and what challenges they impose.
iii) Analyze what is the impact for banks as we know them today: what are the threats and what are the opportunities, both for commercial banks and for investment banks / trading houses.
iv) Craft a practical recommended course of action short and mid term for banks based on the analysis above - both in terms of individual actions to compete for opportunities against other banks, and in terms of collective / sectorial actions to defend and compete against non-banking players, thus lying the foundations for "co-opetition" (i.e. collaboration to compete).