BE Magazine - August 2026

Banking Scale Philippines are among the top adopters of crypto globally, driven by remittances and inflation hedging, but they do not formally use crypto for trade settlement. The United States classifies Bitcoin as a com- modity and property, allowing insti- tutional flows through ETFs but not recognizing it as legal tender for trade. Brazil has advanced regulatory frameworks and a digital real pilot, but crypto remains outside official trade settlement systems. Japan and Mexico permit crypto transactions under regulated exchanges, yet they restrict its role in cross-border trade. ROLE OF BANKS The role of banks in settling global trade with cryptocurrencies is evolv- ing but remains constrained by regu- latory, operational, and systemic considerations. Banks act as critical intermediaries in international com- merce, ensuring compliance with anti-money laundering standards, sanctions enforcement, and cross- border payment protocols. In the context of crypto, their role is twofold: first, as custodians and facil- itators of digital asset transactions, providing custody services, settle- ment infrastructure, and risk manage- ment tools; second, as gatekeepers that integrate crypto into existing fi- nancial systems through partnerships with exchanges and blockchain plat- forms. Some banks in sanction-af- fected economies have begun experimenting with crypto settle- ments to bypass restrictions, while global institutions are cautiously ex- ploring tokenization and stablecoin- based trade finance solutions. However, most banks remain reluc- tant to fully embrace crypto for trade settlement due to volatility, lack of harmonized regulation, and reputa- tional risks. Instead, they are chan- neling resources into central bank digital currency pilots and blockchain-based trade finance plat- forms, which promise efficiency and transparency without the systemic in- stability of unregulated crypto. Thus, banks currently play a limited but strategic role, enabling niche crypto settlements in specific contexts, while positioning themselves to adopt more regulated digital instru- ments such as CBDCs and tokenized assets for mainstream global trade. REGULATIONS NEEDED FOR GLOBAL TRADE IN CRYPTOCURRENCIES To settle global trade in cryptocurren- cies, comprehensive regulations are required that balance innovation with systemic stability. The most crit- ical needs are harmonized interna- tional standards, clear classification of digital assets, robust anti-money laundering and regulation compli- ance frameworks, and mechanisms ISSUE 212 AUGUST 2026 the BANKING EXECUTIVE 53