Decline in Correspondent Banking Services May Encourage Virtual Currency Use

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Apparently, correspondent banking arrangements are in sharp decline across the globe, with active relationships having decreased by 20% over the last 7 years since 2012.

A large portion of cross-border payment transfers have traditionally been handled through correspondent bank relationships, especially for families and small businesses in developing countries. However, increasing regulation and stricter enforcement of anti-money laundering legislation have caused worries for the banking sectors subsequent popularity.