Bitcoin and other cryptocurrencies have revolutionized the way people store and transact currency. Traditional currencies are controlled and transacted using a bank as a middleman. The main feature of cryptocurrencies is that they are decentralized, which means that they are not controlled by any central authority like a government or bank.
Many banks have issued official statements considering their fear of cryptocurrencies becoming mainstream and replacing traditional banking. Also, governments are considering imposing regulations on cryptocurrency transactions, which can be seen as a sign that they feel threatened.
The solution can be not avoiding cryptocurrencies or banning their use but instead trying to learn from them. Banks should think about the features of cryptocurrencies that make people attracted to them, so they can also improve their user’s experience. They should digitalize their way of running the banking business or they risk being left behind. Actually, many banks are very interested in blockchain technologies. It allows Bitcoin and other cryptocurrencies to be traded and it can be the answer to many issues banks traditionally have, such as security, transparency and cost issues.
Banks do have some flaws that could be solved by learning from cryptocurrencies, but cryptocurrencies are also not perfect. Cryptocurrency transactions can take more time than bank transactions. This means that banks are definitely doing something right and that the best recipe for success is considering the best features from each option.
In conclusion, something that we can hope to see in the future is something in between traditional banking and cryptocurrencies. Secure, transparent and cheap transactions that don’t take too long. This means banks should stay open to adopting some of the many good qualities cryptocurrencies have but also means that cryptocurrencies have a lot to learn.