Since cryptocurrency’s inception, many traditional banks have felt threatened by its presence. This is because banks largely control and centralise money flow, and cryptocurrencies offer a decentralised, and less controllable, method of monetary exchange.
But what if traditional banks and crypto didn’t have to be enemies?
A new solution
There’s another option: traditional and cryptocurrency could work together to create a more harmonious financial system.
The traditional banking system has its issues. It inherently favours those in developed countries. According to the World Bank, around 1.7 billion adults globally remain unbanked.
This is a problem that cryptocurrency has the potential to remediate.
Often, when we discuss cryptocurrency, we talk about the way it will replace traditional banking. Certainly, cryptocurrency may transform the current banking system. This does not mean that traditional banks will become obsolete altogether.
Banking in the era of technology
Banking will change from its current state. This much is unquestionable.
The irreconcilable differences between the traditional bank and the customer have become normalised. Traditional, slow and potentially non-secure banking methods are no longer acceptable for the common consumer.
Here’s where blockchain comes in.
Blockchain technology is secure, fast and immutable. This is what the average money spender needs in their modern bank.
Yet banks can work hand-in-hand with cryptocurrencies by accepting them in the same way as traditional currency and collaborating with crypto projects to create a more inclusive and decentralised banking system.
Consumers ultimately want to have more control over their own money.
People currently give their trust to the banks. In a decentralised system, trust is unnecessary.
But will governments and major banks ever trust crypto enough to adopt and include it?
The cryptocurrency of the future
It’s hard to guess what, exactly, will happen to cryptocurrency. Its success seems to hinge on a multitude of factors, which could result in its decline at any time. Yet could any of these factors actually impact it permanently?
The only thing to do is to wait and see.
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