Bitcoin Forum

I think this is the first time a PM makes such a statement.

https://cointelegraph.com/news/israeli-pm-bitcoin-could-replace-banks

In a video published on Tuesday, Israeli Prime Minister (PM) Benjamin Netanyahu claimed that the operation of traditional banks will eventually become obsolete and could be replaced by Bitcoin. He based his claim on the trustless nature of Blockchain technology and on Bitcoin’s continuous, notable growth this year.

In the video, Netanyahu stated confidently that banks will eventually become outmoded and be replaced, though when and by what exactly remains to be seen:

“Is the fate of banks that they will eventually disappear? Yes. The answer is yes. Does it need to happen tomorrow? And do we need to do it through Bitcoin? That’s a question mark.”

...
“The truth behind what I just said is what’s propelling Bitcoin upwards.”

However, the prime minister also expressed doubt in the ability of Bitcoin to continue growing at such an astonishing rate, stating:

“There’s nothing like this, that will continue rising at this rate, it can’t happen.”

I’ve tried to watch the video to see if the article is interpreting well Netanyahu’s statements, but it seems it is in Hebrew and I can’t understand anything.

We have seen people of this forum saying that thanks to bitcoin, banks won’t be needed any more, but I don’t remember an important politician making statements like that.

What do you think about?

Well if he issues this statement really, then this is a bold move coming from a leader who's nation is very controversial. But I have to disagree with him. Crypto will not make banks obsolete. It can't. What I'm seeing is that banks will not to appreciate bitcoin, but will be very interested behind the technology, - Blockchain.

And I think he also see's bitcoin as bubble. Everyone is really thinking the same. Bubble or not. Bitcoin is really here to stay for good. Specially that lots of institutional firms are getting into the act of accepting and offering bitcoin future contracts that solidifies bitcoin or crypto staying power in the public.

The concept of distributed ledger could replace current banks for what payment processor goes. Banks do other things than that, so they would still stick around.

They will stick around too I believe but I think their role in the future will be more limited and not involve our everyday lives as much as they do now. You see people pay bills at the bank, have mortgages through the bank, and all other type of investments. I think they will purely become an investment tool in the future and nobody will really have much funds there other than to invest because I think that is all they will be good for.

Netanyahu's comments could reflect politics more than economics. There's a question of how anti israel campaigns are funded. Worldwide there are many professors teaching at universities and others in positions of authority who push anti israel propaganda. There's a massive campaign against israel and some say this campaign is funded by bankers. Netanyahu must recognize this on some level and so his comments on banks needing to be removed might better be put into perspective.

Netanyahu being a politician(and a former special forces commando), I doubt he knows much about bitcoin in terms of exposition or details. Most politicians trend towards being computer illiterates. They know absolutely nothing about computers or digital currencies, which can make things hard when it comes time to pass laws regarding those things.

He is not an expert on the subject, while my first reaction will be to be happy about this comment at the same time i cannot forget that every time I hear bad reviews of bitcoin by people that are not experts I tend to disregard them, if he really thinks that bitcoin is going to replace the banks then he could establish policies that help its country to reach that goal.

Banks have an immense regulatory in-road and public presence. If the normal user has no idea how to interact with cryptocurrency then there's a nil chance banks would become obsolete.

Well, that is the most friendly statement about Bitcoin and Crypto Currency I have heared until now from a head of state. Good that Netanyahu knows the future belongs to Crypto Currency and not banks anymore, at least the protagonism. The enemies of Israel dominate the currently financial system, so he has nothing to lose by endorsing Bitcoins. But it's a volatile camp, what is today couldn't be tomorrow... So nothing concrete was said yet, we can have only good expectations from his statement, nothing more.

Bitcoin is very popular and will be more popular in future. As we know we save, keep amd holding money as investment in bitcoin.
Inbthis case, i am not sure bitcoin can replace bank as place we can save money. Bank is still important company to secure our money.

For me this is just hype. Explain to your grand-mother how to put his saving on bitcoin and what is that. Or to 80-90% of people in general. We are far far away from this point.

There are some things that he forgot to consider (lack of knowledge?) but we do it as well. While it may be true that in near future banks become obsolete, they can adapt to the evolution and start to accepting to use bitcoin (why not?) Banks have been good enough to adopt technologies and started to offer debits cards, and before that, cheques bank.

As well, they can adapt the blockchain technology to the traditional system as we know it, it can help the banks to reduce some costs. And this is what we have more chances to see. Perhaps each banks having their own crypto

Really waiting for such news from a long time, but I think Israeli PM just got overexcited in stating the statement that bitcoin might replace banks. I know bitcoin is very powerful but not as powerful as banks, sometimes PM make such announcement to gain public faith nothing else. Integrating bitcoin completely into the system can lead to financial imbalance of the country. I think he just confused blockchain technology with bitcoin as blockchain holds the power to create revolution in banks but for bitcoin, it is quite difficult.

It's good to know that the parties running the centralized body (by this I mean the President himself) are finally fearing a replacement to occur for traditional banking institutions. I for certain am not sure if Bitcoins will be the one to do it, but there's no saying what could happen.

Just a thing I had in my mind about “There’s nothing like this, that will continue rising at this rate, it can’t happen.". There need not be anything like Bitcoin, we're looking at exponential growth and adoption and people are eyeing on Bitcoins as a long term storage kind of like the digital gold for millennials. I believe Bitcoin was created with the purpose of having people control their own funds and not to rely on a centralized body. I'm sure the President of Israel here will not be the only one losing their sleep over Bitcoins.

from that news we can assume that the strong countries like Israel are also thinking about the legalization of the bitcoin, because for the replacement of the banks it is very needy that first the bitcoin become a legal in that country. And it will be a very good step toward the success of a country trade that make the bitcoin legal and after that bitcoin will replace the Banks.

This is huge. One of the many leaders of the world releasing a positive statement about bitcoin is absolutely empowering and somehow comforting to know. I agree that in some aspects bitcoin would replace the banks in the future, but completely replacing banks is an overstatement, thinking that there are no central entity controlling bitcoin that could handle loans and other banks stuffs aside from payment processing. The distributed ledger of bitcoin is a powerful tool that most corporations and financial entities are eyeing, and this could be overhauling the banks' system on handling things.


Why would I explain it to my grandmother who would certainly not be able to live long enough to witness these events unfolding in the near future? Also back then, there are no such thing as debit and credit cards: everything was manually deposited and withdrawn using a passbook and/or cheques. People will adapt and only time will tell.

Wow! he surely isn't one of the biggest leaders of the world but surely PM of Israel giving such statement could increase people's confidence upon it. Traditional banking system is obsolete and it needs some replacement for sure. Blockchain surely gives out the best answer as it favours none. What you will be shown in a block would be real nothing fictitious like the banks generally do.

He claims Bitcoin cannot be growing at current rates, I think it is nothing but necessary that Bitcoin keeps growing at current rates, if it's supposed to reach $1 million during the next decade. Exponential growth should put us at 6 figures at the early of the next decade, so we need to keep growing. Don't forget Bitcoin is incredibly tiny if you compare it to the vastness of wealth out there. When you take a step backwards and look at the big picture... why is it not possible that we continue hitting new all time highs every month and how is it not sustainable? as long as there are shakedowns to get rid of weak hands, growth can continue happening, and that is what we've been seeing.

Wow different countries different people and really really modern thinking in the first place. I like it when someone takes the things very positive way when the whole world is against it. I mean a PM addressing to his country about the modern stuff like bitcoin in positive way does look very good. In my country my PM is saying to restrict the crypto currency as whole and anyone using will be punished accordingly. To be honest this is just to hide the country's advances to accept the reality or more advance tech than what they can afford currently. Hope that thinking of every country will change like this and they will start using the crypto currency as straight forward currency and nothing else. :-)

Yeah banks will disappear and will be replaced by web wallets.
tomayto, tomahto

But I suspect he has some kind of plan regarding bitcoin, or at least an idea as I consider him a bit smarter than the average PM nowadays.
After all Israel had a plan to eliminate cash in a decade so a crypto would fit perfectly

If he really said that he probably is preparing something behind the curtains but I can't really even imagine what it is.

I think, Behind of all Cryptocurrency which is blockchain that will replace the banks in terms of transactions. and i really believe in any other currency that has a lot of transactions bitcoin has a big impact in the economy. so BItcoin will replace any other currency while blockchain will replace the banks

I will have to disagree with the Prime Minister on this that bitcoin would replace banks not now, not later rather they would coexist. Also, I see them adopting the blockchain technology in their operations rather than adopting bitcoin as a currency it won't happen because of even factors that are beyond the banks themselves that goes to the foundation of our very existence.

I read an article by Accenture(a reputable consulting firm in the world) on blockchain and how it can be implemented by organizations in their operations this is where I see the cooperation and collaboration happening and nothing else.

Well, an earlier Vice-President of the US is actually a big Bitcoin fan: Al Gore. One of his speeches (in March 2013) was one of the events that fueled the 2013 rally:

The best part of his statement (source (https://www.pymnts.com/uncategorized/2013/al-gore-speaks-on-mobile-money-and-the-global-mind/)):


So he goes even further than Netanyahu - an algorithm replaces "the government" ;D

But Al Gore wasn't in functions - he was already an activist, not really a politician anymore - in 2013 so Netanyahu may be another "first of his kind".

Such a great news for BTC users. Israeli PM 'Benjamin Netanyahu' showed real courage to give an unbiased and realistic statement. This statement will definitely boost the confidence of Bitcoin enthusiasts.
But I think it will take some to stand BTC as a replacement for traditional bank or Traditional stock trading. But surely this is going to happen.

Not only Israel but there is  many of the countries are afraid of its economy because bitcoin discourages banking system which also reduce the average tax collection from the people. Bitcoin improve the economy of a country but in its own way but the governments can't see it. A time will come when they will regret and will remove the ban from bitcoin because bitcoin and states both need each other.

Well, I don't think that is true. No, not because the PM of Israel isn't an expert on cryptocurrency. But because nothing is ever going to replace the banking system. We will always need them. Bitcoin is a complex phenomenal that is mostly understood by the upward mobile youth and tech guys. Banks are understood and used by both the old and the young.

However, what happens is this. Bitcoin will do to banks what e-mail did to the postal agency. Simple! It will diminish its strength.

For me, bitcoin cannot be use as replacement of banks. Bank is not a currency so therefore it cannot be replace by bitcoin. In many aspects or terms bitcoin is used as a currency and some banks are access bitcoin like real paper money. Many people change bitcoin into cash paper which the transaction widrawal is from the ATM bank. I don't believe that it would happen that bitcoin relace banks.

In spite of constant conflicts and a series of Israeli laws that I do not agree on, we have to take the hat off for some things that they take ahead of us, very different from some countries that simply choose the evolutionary setback (an example of this happened this week in Brazil, a deputy presented a proposal in the chamber that provides for a six months imprisonment for those who commercialize btc or altcoin).

And in the not too distant future, banking systems will become totally obsolete and will need to adjust to new types of technology in order to survive.

And i am glad to hear that it is now the time that we all are going to see this kind of newbies everyday, when is going to be the exact date in where bitcoin is going to be massive adopted? No one knows, but if the lightning network gets implemented, then there are huge chances to see banks accepting bitcoin or just talking about it.

Banks are financial backbones of an economy, how can bitcoin on its own over take banks which have been there since forever. Bitcoin is a currency, banks are institutions. There should be alternative for this and a backup sort of thing. You cannot let an entire economy's financial support rely on bitcoin, such volatility may somehow ruin the whole economy. I'm not being a pessimist here but the facts need to be laid out straight up. This idea seems to be absolutely ridiculous but it's not impossible that bitcoin cannot replace banks but the likelihood of such is too low.

It was appreciated by an influential leader to say such a word. Israel is an important part of the world, as everyone knows. Of course, there is a certain truth in such a word. Today's banks have too many functions, some functions are entirely for large financial conglomerates or government agencies. In the near future, I think banks should do more financial services and reduce financial functions.

That I think is something that has scared governments and banks alike when it comes to the proposition that cryyptocurrency is on the rise and a lot of people are investing on it and gaining a whole lot of returns and profits more than what thy have on banks

I don't think so. Banks don't just store cash, you know. They make their money by luring you in with interest and then loaning away your money for their profit. The first function can be replaced for sure, because you don't need third parties to secure your coins for you, but nothing's stopping them from still handing out loans. These guys will adapt, as they have during the internet revolution. I don't think there's any way of getting rid of them. But why would we have to? For as long as they're offering something of value, they're valuable to society.

I look forward to the day that the banking industry disappeared. But it feels a bit distant or impossible to go. Our country's banks always charge high loan interest rates to small businesses, while people go to deposits without interest rates. I have a bank credit card. The annual interest rate is up to 18%. It's awful. I'm going to cancel this credit card.

I also believe that banks will eventually survive because there are many business that a bank can go into. Here in my country, banks are accepting payments for anything aside from the usual deposit and loans. In fact, I would see banks to be adopting and innovating because of the threat coming from cryptocurrency so this can be good for all consumers at the end. The message for the banking industry is this: shape up or be shipped out. What is clear is that in its present form banks will become obsolete and so they should be listening to what the people really needs in order to survive and also be prosperous into the future. Coming from cryptocurrency, there will be some fierce competition and I can foresee banks cooperating with each other and also adopting the blockchain technology as a way to stay afloat and still grow into the future. In my own view, although the banking sector will really be disrupted, there is no need for a war between banks and cryptocurrency as both can be joining hands with the end-view of servicing better the people.

its a very big statement by the pm of isreal.

im not so sure banks will dissapear in the medium term but we shouldnt say never.

Blockchain technology is in its infancy now and is possible of replacing all that traditional banking does now.

I am shocked to see that some prime minister of a country is supporting bitcoins that too this nicely..
Statements made by a prime minister really means a lot, its possible offcourse because bitcoins are something that are going very strong right now.. but total replacement is impossible.. partial replacement can be taken into account but we cannot fully let the banks disappear since there are many things that bitcoins are unable to provide .
Also not everyone has access to the Bitcoins.

I think the prime minister is also investing in bitcoin and is seeing a huge opportunity that bitcoin can give not only for their state but for all. There is no doubt that bitcoin can replace banks, if you have been investing in bitcoin for a long, you are alrady acting like a bank, since you save your bitcoins in your wallet and can do transactions online, and what we save also increased s in value, just like gaining interests for banks,, even though we do not own a huge space and people do not come to us, technically we are our personal banks.

After this announcement by this Prime Minister there is a big possibility of a double numbers of investors of bitcoin in particular in that country.. This statement from a high ranking officials is the biggest news I’ve heard from a government officials.. I will not be surprised,, him being one who’s investing in cryptocurrency and that soon will be find out and I hope to have an update with that..

To be honest I think that bitcoin can actually replace banks, if it ever manages to evolve as a currency. Meaning that it would get mass adoption, low volatility and low fees. Banks only need to ensure that cash transactions are secure and valid, and that no one is cheating. Bitcoin achieves that, in a much trustable way, so it has potencial to replace banks. Not saying it will happen, because even if it did, we would still be miles away from that point, since people are still wondering if BTC is a bubble or not. But in years from now, money will probably be used inside a blockchain or something similar.

Such statements are no longer relevant. The price of bitcoin falls, most likely the era of expensive bitcoin is over. Now will be more popular, for example, the ether and bitcoin cache.

I don't think Bitcoin has the power to replace the banks. Banks will survive but because of influence of Bitcoin and other cryptocurrencies they will have to change and modernise their business.
Maybe some traditional bank branches will disappear and will be replaced by online or something but bank as institution will not disappear. At least not in our lifetime. Too much money, regulation and politics are standing behind them and watching their back.

It is nice that a world leader is aware of what's happening in today's currency now implemented by technology through blockchain. I doubt if he means to compliment bitcoin because people are upgrading now and they apply modernization in currencies, or worried for the banks that might get replaced by cryptocurrencies in the future. I agree to him that there's a chance that cryptocurrency will take over banks but I think it is in the far future. Many countries still don't regulate bitcoins in their central banks. So through Prime Minister's statements, governments will try to enter and talk about this issues.

This seriously looks too optimistic of a statement, but as the PM said, it's actually conquering over those traditional banking systems that have gone completely outdated and the Blockchain technology is taking over the world with Bitcoins as a mode of payment that challenged every other financing ways. It will take a bit longer, but if everything goes according to plans and no crashes take place to make it look like a pump-dump scheme, then I think that the stable Bitcoin will surely replace Banks one day soon.

Well it is not just about replacing banks and making new systems. Bitcoin is having high potential than banks because now if you will keep all your money in bank it will not give you very high profit and will not save amount of money for you but if you will put your money in bitcoin you will see how fast your money will grow and you will get benefit. Now bitcoin is being trust by people more than bitcoin and it is because of safe and long time investment.

Bitcoin won't die that is for sure now. But I think in the next following years it will coexist with banks and that banks might become something else. Perhaps they will be the mining cooperation's of the future. Bitcoin will not replace banks  and I to think Israel is already invest in crypto currencies. Many countries will follow soon, 2018 is going to be an interesting year.

If the pm of a nation is giving a statement like this then you can understand that there is something fishy over there, Either his bold statement would point in the direction that they are serious about bitcoin. But i think they are expecting bitcoin and other cryptos as bubble just like other people, but they cannot close the banks but yes they can use bitcoin in align with them.

Nice to hear this wonderful truth coming out from the mouth of the master and leader of a country! I keep on saying that bitcoin is our reality and we have to stand with thus fact. Bank system of handling financial transactions is becoming obsolete and actually bitcoin is gaining the trust of the populace and many people from all over the world like this system. May God bless this Israeli pm to show us our reality!

Well, that is only a speculation and he did not state he is going to do something to make it happen today or in his time. He stated that it disappearance of banks could happen so he is just speculating but there is no real and tangible basis for this to happen at the moment. Everyone is free to speculate. Maybe Netanyahu is also a bitcoin holder so he is speculating on what would it be like in the future.

At some point it is impossible to avoid evolution, the same goes with banks, if they don't adapt then they will vanish like dinosaurs.

Atleast some one has admitted the truth in the international media.Whether the bankers accept or not,its the truth.But bitcoin will not totally replace banks,but would make their position less important in the society.That's why,we could see bankers treating bitcoin as their main rival and the rival has started its count down against traditional banks.Banks have lending services which bitcoin could not provide.Bitcoin could only act as a high return giving digital asset and provide a means to facilitate transactions at lower price.But lending service would only remain with banks.

Is just a way of developing or enhance the old practices into a new one which can give us a better one. Maybe we should accept the reality that old practices will come to end. Considering that digital currencies will soon to be globally accepted and it could be used either local or online transaction. It's time to put our self in welcoming a new concept of currencies.

Crypto currencies opens up a lot of opportunities in our economic status one of this is the idea that bitcoin can possibly eliminates the need of banks since it is not control or regulated by any government agencies and it is only found in the system there's no need to have a bank holding them, the online wallets are consider to be a bank own and control by the people this idea is really a threaten to banking institution that's why at some point they are not in favor of legalization of bitcoin and its full adaptation in the market.

balon haber. yani sadece bitcoin hakkında söylemiş olmak için yapılan bir açıklama. israil başkanı zaten amerikan güdümlü siyaset izliyor. finansal politikaları da o yönde. o yüzden samimi ve gerçek bulmuyorum. bu açıklama ciddiye alınacak türde değil.

I have not thought of that in that way, but it makes sense. Bitcoin would not totally eradicate banks, but would just limit what it does. Or maybe, it would persist, so both bitcoin and banks would coexist giving diversity and more options to people.

If bitcoin keeps working by the same way as it is now.. i can not be replacing banks, not in the actual conditions.
$40 for sending a simple transaction? Hmmm, i dont think that it is going to work.
12 hours for receiving just the money in the blockchain? I dont think that it will work in a near future.

Crytpo currency is a niche that  has come to be be in the world.I  see it
that decentralized digital money will do to banks what email systems
as yahoo, gmail and all did to the postal offices in different countries.
Banks may soon become obsolete in the scheme of world financial system
considering that bitcoin and other crypto currencies are doing impacting
transaction in the global space.More to this, the California stock market has
enlisted bitcoin in its stock charter.

Bitcoin might replace the payment processing part of banks. But I doubt it will replace the lending side. And lets face it, most of what banks do is lend money (business loans, mortgages, car loans etc). The economy would collapse if lending disappeared.

Im not entirely sure if it's possible to completely replace banks. Banks are responsible for inflation -- that's bad but it's also necessary in our capitalist world. There's a reason why we abandoned the gold standard-- it's just not compatible with capitalism. But in the long run, capitalism isnt sustainable. It assumes we could just continue to grow and grow. We only have limited resources so there will come a time when it's just impossible to grow. Maybe im just using the wrong paradigm because i cant imagine an alternative to capitalism but maybe crypto is part of the solution!

Bitcoin can replace banks but there is no way governments are going to let that happen. Governments would never let something on which they have no control to replace banks.

I trust the opinion of the Jews in the financial sector. The world banking system is their work. They always have an inner flair. Cryptocurrencies can really bury the existing banking system. She dies because of that became very heavily regulated. People don't want to worry about their savings all the time. I am very afraid that the community will accept the legalization of bitcoin. We may end up with the same result.

Israelis know how to make money. I'm glad to hear this positive news. Bank will still be with us and I think that they won't disappear entirely.
Banks are needed because people always will need them. Ethland has a good concept that could be a bank killer.

in the future we don't need card to withdraw money anymore