Bitcoin and cryptocurrency enthusiasts would like nothing more than to see the era of banking come to an end. Not in a negative way with fire and people jumping out of buildings, though, but rather by people waking up to the changes around them and seeing the banking system for what it is. But are banks dying, or will they just continue to exist as these new technologies help them survive?
Playing Devil’s Advocate: Banks Will Not Go Away
A lot of people, including myself, have no love lost for the banking system as it exists today. Having someone in control over your funds does not instill any confidence these days, especially when looking at the track record most banks around the world have created in recent years.
At the same time, there are negative interest rates forcing customers to either invest their money or take it out of the account entirely. That latter option is a lot easier said than done, though, as banks will decide if and when users can empty their accounts. Once again this is not a comfortable scenario for anyone who is paying attention to what is going on. That does not mean, however, that financial institutions will go away anytime soon. While fintech is often touted as the disruptor of banking, it is helping the sector to survive. Collaboration between fintech and banking is the most logical option right now, as one side has the technology and ideas, whereas the other has the global reach.
That does not mean that the banking sector can continue to exist in its current shape, though. There are plenty of things that will need to change and become cheaper. Moreover, banks relinquishing control over funds would be a great outcome for the average person on the street, as unlikely as this is.
Any bank that does not embrace new technologies or pay attention to Bitcoin will eventually face becoming obsolete, that much is certain. However, this applies to nearly every bank in the world, and no one has a competitive advantage right now.Although Bitcoin is a threat to banks, it won’t overtake the financial sector anytime soon. That does not mean that banks should ignore and oppose cryptocurrency either, but they are in the luxurious position of being able to stall for quite some time.
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