Bitcoin Forum

We are hearing buzzwords like, "real-time payment methods" and
"War on Cash" from people in the financial industry.

McKinsey research forecasted back in 2014 that more than 50% of
incremental revenue in almost all banking products in Western Europe
will be digital
by 2018. When we look at the trend, it looks like this is becoming a
reality.

Bitcoin might not replace these financial institutions, but they will
force them to change!

We are still far from the situation where more than 50 percent of the profits of banking institutions in Western Europe would be in digital money. The Crypto currency will greatly push the circulation of ordinary paper money, but not completely, and this process will be very lengthy. Especially for a long time this will happen in the banking sector of the economy, as banking structures are partially cautious, and in part even hostile to the introduction of crypto currency.

I think for sure it will make them change and im sure they are working
away diligently on their blockchain solutions right now!

Because they have to change being digital very nice very in today's generation and in the future generation we have to face even more problems and Bitcoin is already suffering from many of those. But still Bitcoin has managed to gain some price increase in these days but it is far away then being the number one currency in the world. Bitcoin can never reach where it belongs because it is incomplete and if you are a current Bitcoin user you already know the term segwit address which is going to improve even more up to the lightning network so that everyone can use Bitcoin At a physical currency level.

What you're saying is partially true. I don't necessarily believe that bitcoin or any other cryptocurrency will necessarily completely overtake banks, but they will certainly incorporate blockchain technology into their systems as it is simply more efficient and transparent. It is likely, however, that some banks will release their own crypto in future.

I agree, as we all know banks needs to control the flow of money, and the cryptocurrency at the moment, prepare the anonymous money transaction, but I really believed that Banks will really do adopt the Blockchain due to its security and fast transaction.

Most governments are currently trying to regulate cryptocurrencies and research them. People might force them to adapt cryptocurrencies but it will be possible to achieve only if we team up together and defend cryptocurrencies from being made illegal or heavily regulated by ridiculous taxes. Banks and governments will in fact lose if they decide to introduce cryptocurrencies. That's why they are trying to resist so much.

for me its just an option. fiat currencies will not perish but digital payment will become a good option. if we force to change, many aspects of the payment industry and even economics may be damaged. little by little, the world will adapt to digital money but as an option not as 100%

It will happen, I wouldn't like to predict exactly when, but there will be a point when digital currency is the only form of payment. There are already cities where it is difficult to pay in cash for public transport and other services. Many major transportation systems try to push everyone towards the cashless model offering steep discounts for doing so. Admittedly, this is still linked to fiat and more for efficiency than anything else, but it is the start of things to come. This model will gradually seep into other aspects of life, and it will be onward and upward from there.

https://www.telegraph.co.uk/money/future-of-money/10-cashless-countries-world-does-uk-rank/

http://theconversation.com/central-bank-digital-currencies-toward-a-cashless-society-93903

This is obviously no guarantee that any existing digital currency will succeed, in fact, the likely outcome is that in 50 years time, it will be a currency that hasn't even appeared on the radar yet. Anyway, I'd put money on the world being fully immersed in digital currency in my lifetime (and I'm not young anymore  :-\).

But financial institutions will never be decentralized no matter how much they change.

They will not have control they want to have with decentralized system, they will try to keep what they have now. People are sick from this, and in far future decentralized system will be more popular in my opinion.
I agree that blockchain changed the way people look at monetary system. We need this change and financial institutions are trying to fight with it but I think this is the battle they will lose in long run. There will be coins centralized coins like ripple, but I think people will have opportunity to choose what to use and we must choose decentralized system as primary one, other can be complementary to that primary.

Indeed. I agree with the fact that fiat will not disappear nor lose its value. It may just lose its appeal and the option of being use by people in terms of daily transactions such as payment, but still, it will not disappear. People are very resilient to changes, however, as much as that it is true, people are also afraid of changes. They fear something they cannot understand nor control that's why we have the current trends in the regulation of cryptocurrency. However, sooner or later, more people will learn to embrace cryptocurrency , but always with cautions and limitations.

We are not forcing financial institutions to change anything. They are the ones that built infrastructure for digital payments and "digital money", who gave us the opportunity to use card without the need for cash, the ones with which help we can pay for goods and services online and all other type of things. Because banks built this infrastructure we can now move our money digitally and thus it's even easier for them not to print any money but simply replace few digits along the way. But some banks are scared with crypto by disabling you to transfer between exchanges etc.

Blockchain technology has been learned by many giant industries including banks. this can mean that conservative monetary will adapt with digital currencies. in the future, we may look transactions in easy way with low fees.
yes, they will change for sure.

If you look at the transaction prices in December 2017, it seems to me that there is no hope for a low transaction price. Nothing changed during the crisis. This was the best time for modernization. If the hype starts now, I am sure that the situation will repeat itself. But now all not until this. Everyone will enjoy rising prices.

They can co-exist and it is true that the cryptocurrency revolution will force its way to some changes in these financial institutions policy we are moving in a new financial technology and blockchain is the frontrunner of this I'm glad to be part of this revolution.

In the future, that would be the changes we are going to experience. Since everything is evolving like the Monetary institution will do, because they don't want to be left behind by cryptocurrencies which is now skyrocketing in the market. Evolution is the reason for all the changes to be happening around us most especially in our monetary institutions.

Of course that governments will try to regulate crytpo. After all everything is regulated by some kind of law, why would it be any different with crypto. Also, governments will not ban crypto. They can benefit greatly from it, so why would they ban it. Also with regulations they gain much more.

I am not sure how would governments and banks lose if they introduce cryptocurrencies? I think they would benefit from it, not lose. Also they are not trying to resist, they are looking for a right way to adopt and regulate crypto. Its not easy task for governments and banks to adopt system like blockchain, which is made to be decentralized. But no one can stop the progress of digital age. And like OP said: crypto is changing financial institutions. Also, crypto is changing peoples view of currency.

Changes may happen, but we don't know when it will happen, because everything must go through of the standardization of the system in each country and it is all necessary to be reviewed especially in terms of security and its benefits.

I do not think that by the end of this year such a forecast that half of the profits in the banking system will be due to the crypto currency will come true. Until now, banks are very resistant to the introduction of crypto currency into our lives and do not abhor various provocations and the organization of counterfeit negative news about the crypto currency, so long as citizens do not take an interest in it and do not use it.
In order for banks to actively use the crypto currency, it is necessary that it be legalized in each country by state authorities and that banks receive the appropriate written instructions on the use of crypto currency.

when we have a look in the world we barely see people paying with cash and the majority are using the cards or things for payments already so btc will make this process of change faster in my opinion.

well, although this is visibly realistic has it is gradually coming into reality. technology is fast developing every day but there has to be inc-operation between bank and blockchain in other to control the flow of money and secure anonymous transaction which can be adopted from blockchain technology.

This is why this seed that we call BTC was thrown in the wind. To show people they have a choice.
If you come up to a merchant and tell him to implement a new payment option he'll be like "why should I? They are buying my stuff anyway" but if you show the clients that there are better, cheaper ways to pay, they will change the merchants because while the merchants may not care about new payment systems they care about their client's opinions.


Because cash is more difficult to handle. You can lose your card and still have the money, but when you lose a dollar bill, it's gone. Same with BTC, you can lose your wallet, but the finder won't know the passphrase and your money is safe. Cash is burnable, can be cut or ripped, is difficult to carry around in large quantities, no wonder it's a dying breed.

Yes, it's right. I agree with you.
Many thing has changed. Now there are many projects in cryptocurrencies. Projects are using cryptocurrencies to raise funds. Also, using blockchain technology in many industries will be a must in future. An example is Telegram app which will use blockchain technology.

By force?? or by demands?? from the people who are adapting the fast phase of technological advancement.. The reality will be in front of us if the government and mainstream media will do cooperate and be true to themselves of what blockchain can do in our society..

Bitcoin and crypto as the future has needed more time as expected,, mentality and adjustment is a long process that each nation must slowly going through..

Can you give any statement that's legit that came from them? If it's real then there's a hint that it can be cryptocurrencies.

They will also try to adopt, some other banks did it but majority of them will enforce regulations and will stay away from doing so.

It's going to happen with or without bitcoin anyway, given that the demand for speed and reliability in handling payments is growing. However in the advent of bitcoin, or rather ever since bitcoin has been sensationalized, the finance industry has learned a thing or two in it, and the most important thing is security.

Let's admit it, banks are more prone to hacking and getting their systems rigged than blockchain-related services do. Both are secure in some way, but the former can be easily exploited even though it costs a lot to maintain their systems.

Bitcoin is a revolution when it comes to economics and sure it will change how financial institutions function, we might see more transparency in the future on what they do with our money and technology is improving at a fast pace and there will be a time when there i will be less job and that is my only fear, i like to see good healthy competition rather than taking advantage of us.

You could say that we are almost on that era since most people on earth are now recognizing the existence of Bitcoin but mostly of them are not really aware of the use of it. They just know the name because someone introduces it to them and some of them are using the idea of ponzi/investment scam that's why the rest of them that didn't know exactly what is Bitcoin will follow on what the naive one that they will tell to them. This is most likely the rest of the ratio is going to be a problem for this new era of digital money.

It may only be relevant to the implementation especially in the financial industry and in terms of admission of the crypto to selected banks so much will be change especially in the banking sector. Those countries may have contributed significantly to crypto acceptance, but how about few that did not fully understand that it can be extremly efficient especially in production that can be large enought, it can be changen, but it will not happen to replace it.

There are countries in the EU still, where people prefer cash instead of debit cards and bank transfer, and not because that cash is easier to handle, but there are several type of jobs where you get some (a little) part of your salary legally and the major part is given in cash (because of the tax 'optimization'). These people will prefer to use that cash in shops and in other places, where they can spend it easily (and somehow anonymously). As soon as these people will realize that cryptos are easy to track they won't want to change the cash for crypto (until the government will force them to use digital money (crypto or not) instead of the banknotes and coins).

That is correct. Banking system like we know it, costs a lot more and its more prone to hacking.
With Blockchain technology that things are solved. Because of the way it was made and the way it works, manipulation of data is almost impossible. That is why there's so many people and companies that are interested in Blockchain. Because it provides more security than classic networks among other things. That is why many people believe that blockchain technology that is decentralized is the future.

First of all, it's not difficult to predict 4 years into the future when the path is so obviously laid out in front of us. Online bank accounts were becoming more common, digital payment systems like Paypal and Amazon Payments have become widespread with the explosion of online shopping, and the decline of physical cash has been apparent since the inception of credit cards.

I don't think that because he managed to predict a tiny fragment of the future that he is some sort of guru, as after all, only those who correctly predict things usually make the headlines, neglecting all the dozens of other people that likely said the complete opposite and got it wrong.

Let's see him accurately predict what the market will be like in 10 years, I bet he, and most other people will fail. As it is very difficult to predict exponential progress when we are used to thinking of linear relationships.

If you have access to the amount of information and tools that McKinsey team have access to, it's easy to predict what will likely happen in the future in terms of predicting human behaviour and the reason is simple when people form an habit, it takes a long time before they drop it and might likely not drop it by rubbing it of on the upcoming generation

Another is that, in the flow of development, we don't expect to go backward rather forward in making life easier and I would say we are tending to the point of a technology to affordable to everybody that when I need to comment on the forum, I just need to say the words and it's type going forward from there my favorite topics would be noted and comment will appear as if its me. On bitcoin forcing them to change, its explained in simple words everyone has it by default to get annoyed or happy or great what is needed is the push and that is what bitcoin has done.