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More banks admit cryptocurrency is a real threat to them
February 24, 2018 Helder Thijs 2 Comments
Cryptocurrency’s increasing popularity is now resulting in many governments showing interest in understanding them. Some governments no longer see banning cryptocurrencies as the way forward as its proving almost impossible to do so. This, therefore, means banks in these countries are on their own and now see cryptocurrency is a real threat. Such banks are now either declaring the gradual dominance of cryptocurrencies or are taking actions to combat its increasing popularity.
Many banks hope on the government crackdown on cryptocurrencies as a way they can stay relevant. However, things don’t seem to be going entirely in their favour as many governments around the world are increasingly showing interest in cryptocurrencies by either creating a national cryptocurrency, regulating cryptocurrencies, or giving a blind eye to cryptocurrencies.
Turkey and Iran are talking about creating a national cryptocurrency which they expect to see coexist with cryptocurrencies like Bitcoin. The Japanese government, for example, has put in place friendly regulations towards cryptocurrencies which have seen an increased use of digital currencies in payments of goods and services.
Also, South Korean exchanges are busy self-regulating their activities while the US is not willing to “kill” innovation by quickly regulating cryptocurrencies, an innovation which many officials have admitted they know very little about.
This crypto friendly attitude from some of the top crypto trading countries has resulted in many banks seeing cryptocurrencies as a real threat to their operation.
Recently, the State bank of India made a statement where they see the blockchain technology taking over the banking sector by 2030. In a statement made by the head of innovation, he said.
“By 2030, traditional banking services could cease to exist with Blockchain. All services of banks can be replaced byBlockchain”1
He also said they are teaming up with some banks around the country to brainstorm on ways they can combat this change and still stay in business.
Bank of America has also declared that cryptocurrencies pose a treat to its future and business.
“Clients may choose to conduct business with other market participants who engage in business or offer products in areas we deem speculative or risky, such as cryptocurrencies… such increased competition may negatively affect our earnings or affect the willingness of our clients to do business with us.”
Though the Bank of America has not directly admitted the rise in interest in cryptocurrencies, such a statement speaks for itself.
The Polish Central bank also recently funded an anti-cryptocurrency YouTube advertisement which has generated more than half a million views. The ad portrays fiat to be superior to cryptocurrencies. It also sent out a message that cryptocurrencies are scams which are not accepted as a means of daily payment.
These actions and statement tell the degree of threat cryptocurrencies to pose to banks. Given the high likely hood of most governments regulating and legalizing cryptocurrencies, banks are now taking actions to stay relevant.
What are your thoughts on the future of banks? Do you think cryptocurrency is a real threat to banks? Will they completely eradicate or coexist with banks?
Altcoins News Guide Top stories
More banks admit cryptocurrency is a real threat to them
February 24, 2018 Helder Thijs 2 Comments
Cryptocurrency’s increasing popularity is now resulting in many governments showing interest in understanding them. Some governments no longer see banning cryptocurrencies as the way forward as its proving almost impossible to do so. This, therefore, means banks in these countries are on their own and now see cryptocurrency is a real threat. Such banks are now either declaring the gradual dominance of cryptocurrencies or are taking actions to combat its increasing popularity.
Many banks hope on the government crackdown on cryptocurrencies as a way they can stay relevant. However, things don’t seem to be going entirely in their favour as many governments around the world are increasingly showing interest in cryptocurrencies by either creating a national cryptocurrency, regulating cryptocurrencies, or giving a blind eye to cryptocurrencies.
Turkey and Iran are talking about creating a national cryptocurrency which they expect to see coexist with cryptocurrencies like Bitcoin. The Japanese government, for example, has put in place friendly regulations towards cryptocurrencies which have seen an increased use of digital currencies in payments of goods and services.
Also, South Korean exchanges are busy self-regulating their activities while the US is not willing to “kill” innovation by quickly regulating cryptocurrencies, an innovation which many officials have admitted they know very little about.
This crypto friendly attitude from some of the top crypto trading countries has resulted in many banks seeing cryptocurrencies as a real threat to their operation.
Recently, the State bank of India made a statement where they see the blockchain technology taking over the banking sector by 2030. In a statement made by the head of innovation, he said.
“By 2030, traditional banking services could cease to exist with Blockchain. All services of banks can be replaced byBlockchain”1
He also said they are teaming up with some banks around the country to brainstorm on ways they can combat this change and still stay in business.
Bank of America has also declared that cryptocurrencies pose a treat to its future and business.
“Clients may choose to conduct business with other market participants who engage in business or offer products in areas we deem speculative or risky, such as cryptocurrencies… such increased competition may negatively affect our earnings or affect the willingness of our clients to do business with us.”
Though the Bank of America has not directly admitted the rise in interest in cryptocurrencies, such a statement speaks for itself.
The Polish Central bank also recently funded an anti-cryptocurrency YouTube advertisement which has generated more than half a million views. The ad portrays fiat to be superior to cryptocurrencies. It also sent out a message that cryptocurrencies are scams which are not accepted as a means of daily payment.
These actions and statement tell the degree of threat cryptocurrencies to pose to banks. Given the high likely hood of most governments regulating and legalizing cryptocurrencies, banks are now taking actions to stay relevant.
What are your thoughts on the future of banks? Do you think cryptocurrency is a real threat to banks? Will they completely eradicate or coexist with banks?
