Bitcoin Forum

Within a few years, a younger generation of financial services customers is going to be able to walk into a bank and gain access to credit products, savings accounts, and investments that can host both cryptocurrency and fiat purchases. The inroads that will permit all of this to happen are already smashing the ground.
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Clients will soon clarify a “full assistance” bank as one that proposes economic services in both crypto and fiat. The period to start cultivating the essential devices for the crypto banking trade is right now. Banks need to start adapting or get left behind. Make no mistake about it."

Article: Crypto banks are going to swallow fiat banks in 3 years — or even less

What do you think about this topic, whether cryptocurrency banks can face off and soon replace traditional banks in the fate? I think this is tricky to occur because the current number of crypto banks is very tolerable described to the number of traditional banks. Even in the most optimistic scenario possible, if banks around the globe implement an efficient method of transaction (maybe Ripple), they will only accept stable coin rotation or CBDC to be able to Compliance with the monetary regulations of governments.

Banks can't compete small companies taking off and fintech, because banks are giant, immovable, slow institutions. Most are tied with bureaucrats, and can't just risk alike.

"Crypto banks", in the manner I understand it, is regular banks with cryptocurrencies along with fiat. So it's expected that people will use them as intermediaries. Yeah, that sort of nullifies the whole concept of cryptocurrency.

It defeats the purpose of decentralization when you store your crypto assets in a bank.  We are reminded all the time of the "not your keys, not your coins"  so if you still keep your coins in a bank, that's a classic example of you not learning.

Bitcoin was supposed to be stored safely where you own it. Be your own bank.

Banks that utilize a business plan that successfully incorporates smart-contracts for a decentralized experience are definitely possible and are probably the way of a viable crypto banking future. We are on the way there already with DeFi but definitely no where near the finish line. I think you are thinking crypto banking in the traditional sense. I think that that crypto will have to innovate banking in many ways to succeed, and will.

It should be already a reality, the issue is that such institutions offering crypto and fiat mixed services lack credibility. The company Celsius was supposed to work as a bank, but it scammed customers, so people just don't trust it anymore.

There is still Nexo, Crypto.com and few other alternatives, however investors don't see it in the same manner anymore. People want guarantees they will deposit their money on those companies and will be able to retrieve it anytime. Unfortunatelly those guarantees don't exist.

On the other hand, the government of my country guarantees banks have to retrieve funds back to customers up to 48,000$ per ID. So, as long as you have that sum in your account, you will be safe. However, these traditional institutions aren't going to adopt decentralized cryptocurrencies, just CBDC.

How is something that doesn't exist today is going to replace the backbone of global economy in just 3 years? If you listen to bitcoiners, Bitcoin should have replaced fiat many years ago. Yet we all still go to supermarkets and pay with fiat for groceries.

Regular people have no incentive to switch to crypto banks and crypto in general. They don't care about fiat's inflation that much. And they don't care about privacy. And control over own funds. And let's not forget that even if crypto banks started getting traction, governments and traditional banks would either resist this trend or hijack it.

Cryptocurrency continues to play a role in the global economy, but this does not imply that Bitcoin or cryptocurrency will replace traditional fiat banks. The government begins mobile banking and digital banking to change how people manage their assets without going to the bank. Although they do not use cryptocurrency, they do provide a digital experience. Fiat currency will exist and cannot be replaced by cryptocurrency.

As the Bitcoin industry keep growing and expanding, I am sure it would give birth to many financial services that might be similar to conventional banking. But the beauty of these services would only be if it supports the decentralization goal of Bitcoin.

Bitcoin is currently popular among youths but a larger number of the global population are not yet aware of this unique cryptocurrency. Most of them are only conversant with fiat and are very comfortable using it. There are other issues such as lack of infrastructure, illiteracy and unfavorable government policies that would continue to hinder the progress of Bitcoin in some countries. The bottom line is that fiat and cryptocurrency would keep existing side by side until majority of the world's population understands the importance of Bitcoin. 

Crypto banks aren't entirely a new kind of banks, they are traditional banks that accept crypto in the same way they accept fiat and traditional assets, so you can't talk of them replacing traditional banks, i believe the correct thing should be that most traditional banks in the future may start accepting crypto in addition to fiat and traditional assets.

Crypto exchanges are already a problem to crypto people as they have failed to learn how to hold their crypto in their self custody wallets, i don't feel crypto banks is a good thing for the network, it takes everything back to a centralized model. Crypto exchanges are enough for the network, people should use them to trade their crypto, and they should use self custody wallets to hold their funds, engaging more services in the network would only confuse people the more and make them make mistakes as to how crypto should be used.

Well it is possible that crypto banks could replace traditional banks in the future, but for now, there is uncertainty. The use and acceptance of cryptocurrencies is still relatively new and the government have not yet made clear any regulatory policies concerning crypto adoption, perhaps one of the reasons why the adoption process is slow.

Traditional banks on the other hand,  have a significant advantage in terms of infrastructure and long-term relationship built for years.  
It is possible that crypto banks could serve as complementary to traditional banks, offering unique services such as low transaction fees, cross-border transactions and a higher level of security and privacy to its users.
And this is more likely to happen since it will be extremely difficult for traditional banks to be replaced.

We can talk about the bitcoin market confidently without compromise but not  with the entire crypto market since bitcoin is believed to be the only most recognized currency that is being acceptable as a media for exchange and asset, now that we are already in thw digital era with bitcoin adoption, this have been changing for good as the financial economy is going as expected through bitcoin adoption with maximum profitability of investment, currently now bitcoin weekly confirmed transactions has surpassed that if fiat without a course or barrier.

I think that you forgot to include the link and here it is: https://cointelegraph.com/news/crypto-banks-are-going-to-swallow-fiat-banks-in-3-years-or-even-less

I think that crypto bank is a clickbait in the article. The main idea of the article is that young generation will probably not be interested to deal with the banks that don't offer crypto services too. It is logical because young generation is more techy and more friendly towards it compared to the older generation that most likely prefers to stick with the old methods. I agree with this statement but there is no way that Kraken and similar "banks" will ever be able to swallow traditional giant fiat banks. When the time comes and the major banks sense that there is a time to implement crypto, they'll just do it and Voilà, everything will be alright.

Crypto may be globally adopted in the future, but that won’t mean that it will replace fiat and traditional banks. Crypto will only serve as an option to fiat, fiat will always be the main currency. So it’s hard to expect that crypto banks will replace traditional banks because majority will still use traditional banks over crypto banks.

That's true, as long as those regular people are doing fine, living in their bubble.

Canadians who went on to protest against lockdowns and covid restrictions also thought about themselves as regular people and then they started to get scammed from all sides. Even gofundme stole their money which shows that centralized companies are corrupt and the government can do what it wants with them.

I agree that people don't need crypto banks. They need crypto-friendly banks. bitcoin isn't here to replace fiat but to replace custodial services and introduce some transparency.

Cryptocurrency usage around the world keeps increasing with time. This is happening our of the people's interest upon technology and getting connected to it. Banks were the backing system of a country's economy. Such an out right replacing of traditional banks won't happen. Existence of cryptocurrency banks too is a limited trail in specific locations as it requires time as well as make people understand well about it.

I doubt maybe there will even be any crypto banks, possibly we could see traditional banks incorporating cryptocurrency transactions in their system, that is what might have even incited the CDBC idea. This now could lead us to the question wouldn’t this actually defies the sole purpose of cryptocurrency or rather bitcoin which is decentralization. The centralized exchanges today look more or less like our assumed crypto banks and I doubt investors will fall for it and store their funds there.


This is one area even the government is not well informed about, they feel bitcoin or crypto is here to replace the entire Fiat system, why wouldn’t they when they have their way with irregularities in traditional banks. Crypto is or should be use as an alternative to fiat

I can say crypto banks can be an alternative but I do not think that it will replace the traditional banks.  One of the major reason is the government and the financial institution.  They will never let crypto banks to dominate the market, these two entities will always try thier best to put everything under their control.  With that in the financial system, financial institution will make sure that their traditional banks will not cease to exist.

Crypto banks? What would that even mean?

The best we see today is crypto companies acquiring controlling stakes in banks -- and these existing licences are on products they're not going to let go of anytime soon for want of keeping customers.

When banks accept other assets, they don't become different types of banks. They are still banks, whether it was gold, dollars, shares, bonds, stocks, all kinds of investments and assets. That didn't make them gold banks, bond banks, stock banks.

Get used to the idea that traditional banking doesn't evolve just because it accepts crypto deposits. Let's wait for when they let customers actually withdraw coins first before we discuss crypto banking.

Fiat will stay for good even if crypto usage will become rampant. And besides, crypto is designed to be an alternative payment over fiat so it will never replace the position of fiat, instead they should work hand in hand to create prosperity in the global economy. That way, people will also have more freedom to choose which mode of payment that they feel most convenient for them.

This was discussed here repeatedly or perhaps in a different way but it has the same question, ^{[can crypto replace fiat?]}
But in the first place, what are crypto banks? I don't see there is a potential bank in crypto but if you mean your wallet, that should not be on centralized wallets, like the bank --it should be on the non-custodial wallet. This will not happen and the creator of bitcoin this did not have a purpose, the main purpose is to alternative the fiat transaction anonymously and never rely on a third party. Bitcoin is a financial freedom while fiat it si not, but bitcoin is not going to be the main currency world wide, it should have a different value.

You can't use cryptocurrency without fiat currency, they both go hand in hand. Fiat has come to stay because this is the only way we can make everyday transactions easy. Fiat banks will always be there because they are own or run by the government of a country through their policies and regulation. Bitcoin is a digital currency and assets for people who understands its value and so can't replace fiat bank because I will say that the fiat banks still have more trust than cryptocurrency banks. Fiat is used globally but bitcoin is a private use.

Already more banks have begun to work with cryptocurrency. This means the traditional banking system with the cryptocurrency banking will coexist. This is actually good, because people who doesn't have much interest can make use of the cryptocurrency related services through the traditional system followed all around.

Fiat currency will stay along with the fiat banks because they are already a big institutions and even the government will not allow this. Probably those banks will adopt cryptocurrency in the future but that doesn’t mean they are going to be replaced.

Cryptocurrency seems to have a good competition with the fiat currency, it gives freedom and that’s why many still want to invest in crypto. Its good to have fiat and crypto currency option, banks should start updating their platform if they don’t want to be left behind. Crypto will continue to serve its purpose.

One of those things I least expected to see in the Bitcoin/cryptocurrency industry is crypto banks, mehn that sound weird since a bank is a centralized institution with the government at the helm of its affairs, cryptocurrency, on the other hand, is attributed highly to decentralization.

So expecting i cryptocurrency bank is as good as giving up our decentralization freedom because if crypto ever gets involved in cryptocurrency it should be at the level of an intermediary.

It is people that does not know what is traditional bank please say that bitcoin or cryptocurrency will replace a traditional bank there is no way a Fiat currency will not be in existence because not all the country that accept Bitcoin so Fiat currency will still be in control of any other coins or any other money so talking of banking system banking system cannot be replaced with online banking system so when was a traditional banking system will mean a bank so it is the main factor or the main base of online banking system because all the money in most to convert it to Fiat currency which is traditional money before making use of it after oil online banking

Fiat banks can never fade away since Fiat still exist. Banks deal on Fiat which are the locally acceptable in various places. Banks do rely on government to deal on Fiat compared to Crypto which is decentralized and does not need anybody to approve of it's operation but looking at your topic, Crypto banks are likely already existing. If I may ask you, where do you store or save your Coin and token? I know you would say wallet and exchange and I ask, where do you trade your coin and token which I also believe you would say DEX and CEX. Now I ask again, these Dex and cex you have been dealing with, what are their roles compared to the banks we do store values and money? Is it not the same thing? But only difference is that banks are licensed by the government but Crypto is never  and I think  with time,  there would be a good integration of system which would mean that you can be able and free to deal on either fiat or Crypto in the same bank.

Definitely impossible. Cryptocurrencies are not even accepted by majority of countries so what more with crypto banks. It is more likely to happen in the future that both crypto and fiat would co-exist with one another as alternative modes of payment and there's no chance that there'd be only one to be used given that both has advantages and everyone has their own preference; not all people are into investments.Indeed many people are interested with INVESTING to this industry but not for transactional use or as to with what fiat is being used for. There is a huge difference. More people are still seeing this industry as a profitable asset and not as a handy mode of payment.

It would exist no matter what and as long government does exist then these centralized institutions wont really be ceasing to exist but rather still be remaining as the mainstream considering on how people do trust up
soo much the banking system that we do have.Even we do hate up too much centralization but we cant really deny nor ignore that it is somewhat secure and something more better if we do talk about insurances
and security which most of us would really be storing up your fiats.Now that we do have crypto then i dont see the relevance of that crypto banks since we are considered to be banks
of our own.We dont need one imho.

New to crypto fantasize things which is totally impossible since if we look at the economic structure anywhere in world fiat is dominating so I guess crypto with that is just another alternative currency. We like this to happen but government will always have final say regarding what they want to implement and for sure fiat will always be covered by them or protected by the law.

in my opinion, crypto will not replace traditional bank crypto and traditional bank keep involving I know there are some things that are better decentralized but there is also a bunch of benefit in centralization, according https://cointelegraph.com/news/world-population-reaches-8-billion-but-how-many-are-in-crypto that crypto user is only 4,2% worldwide which mean is pretty small to replace any traditional financial system.

I just hope traditional financial system work alongside with crypto

Even 10 years from now, bitcoin or cryptocurrency will never replace traditional banking, I agree with what @hatshepsut93 said. Banks are the backbone of the world economy, playing the most important role, so the replacement or not is decided by the government, no other force can replace it. The bitcoin revolution is booming but for it to have an impact on the global economy, I think we have a long way to go, maybe decades, not just a few short years.

Today, actually since genesis, you're able to generate your own bank, for free, anywhere in the world, without asking anyone any permission. It's a Bitcoin private key. You generate it, and you have full control of your money.

Why would anyone want to go to a bank, giving them access to your money?, makes no sense.

That's one of the key principles in Bitcoin, that you don't need another person managing your money. All that crypto stuff is just jargon for banks to continue doing what they have always done.

With Bitcoin you don't need banks.

3 years or less? let's see does your speculation will come true because I believe it wouldn't happen at least 5 years later.

Only 2 countries accept Bitcoin as legal tender while 99% of the other countries doesn't accept Bitcoin, although majority accept Bitcoin as an investment, some of them either in grey area or ban Bitcoin.

If Bitcoin isn't accepted as legal tender, it's impossible for crypto banks to replace traditional banks. I expect there's will be few centralized company or exchange created in some country, just like stock securities company.

I agree. Not much success with the OP's idea in view of the responses. As of today Bitcoin is more of a store of value than a currency, it's as if he was talking about banks for gold, digital in this case. And we see that gold banks do not exist. There are safe deposit boxes, yes, but for whatever you want to put in, not just gold. In the same way there will be and there are "banks" for Bitcoin, but let's remember that FTX was a kind of bank too, and the conclusion we can draw from the end of that story, and others that there were in 2022 is that the best thing you can do is to hold your own coins, or better said, your private keys.


Yes, well, those who invest in shitcoins as they play roulette will not care, but hardcore bitcoiners doubt very much that we will make use of the services offered by banks related to cryptocurrencies.

For whatever reason, I really don't believe bitcoin was created to compete with fiat and kill banks globally. For me bitcoin is a payment option that may also be often referred to as an alternative, and bitcoin is not a substitute for fiat. Even if the crypto bank was created, I think it is only because some users think that the bank can offer good security for its users' funds. Meanwhile it is another third party created, and what are you trusting it for when you have your own bank in hands with bitcoin.

Have custody of your funds in cryptocurrencies, and so far I think hardware wallets can help you secure your funds there. Think about the security options and recommended security measures, they will help you avoid most of the problems from the risks involved.

I think you may be perhaps misunderstanding the entire point of Bitcoin as well as other cryptocurrencies. It is to BE YOUR OWN BANK. It really is self explainatory. There is absolutely no more need in our modern times for some third party member to hold your money for you until you decide to send it to someone. And not only do they hold your money for you, they also demand payment for this "service". Although its not a service, really.

And if something should happen, be sure that nobody in that bank will care about your loss of money. The bank will whisk away responsibility and carry on as usual.

Rise above and be your own bank.

The correct topic subject for this topic should be "will crypto replace traditional banks" and the answer is yes, yes they will and already have done so.

Currency control is the authority of the central bank as a monetary authority, while crypto is anonymous which can one day disappear, each country also experiences different economic developments every year, if crypto becomes a world currency it means that each country does not have the authority to manage monetary policy, meaning only there is one central bank in the world, this is contrary to the theory of optimum corrency area (oca), so in my personal opinion crypto banks cannot replace central banks, because the average government and central bank in every country are still against crypto, especially anonymous crypto like bitcoin .

If this occurs, does the primary purpose of cryptocurrency continue to exist to some extent? No, I don't believe so.
The primary goal of cryptocurrency creation is to be used as a means of savings and trading, similar to other fiat banks. This is not a rivalry between the two. The difference is clear to comprehend; one is centralized, while the other is decentralized.

Bitcoin is an entire financial system, why do you need some additional bank to use bitcoin? Crypto was made to have an alternative to a classical fiat system with banks, you just can use it directly. If you want to have a third party to trust then fiat system is your choice. If you are choosing bitcoin you need no banks for it. Of course banks want to keep control and they will provide service for crypto as well, but we should not be confused by their intentions.