Political Issue, Banking and International Payments

[Wintersoldier]

As our technology expands and innovated, the traditional banking industry is having a hard time keeping up with the changes, especially through the utilization of the blockchain technology in cryptocurrency. In addition, politicians have their different views and perceptions about crypto. Thus, inducing various effects on cryptocurrency adoption and banking industry that might lead banks to have various challenges and affects local payments as well as international transactions in many aspects.

According to this article, Donald Trump's view regarding Bitcoin and Crypto is not money,

"having a value that is highly volatile based on thin air"

This statement of Donald Trump regarding crypto might have a huge impact on the people who have insufficient ideas regarding crypto and might lead them to distrust the entire system at all.


On the other hand, here are lists of Politicians that are Pro Bitcoin and Blockchain Technology according to this article:

• Jared Polis
• Dan Elder
• George Galloway
• Andrew Hemingway
• Gulnar Hasnain
• Rand Paul
• Rick Perry

United with one view that is for the world to continue utilizing and develop Bitcoin and cryptocurrency, it can certainly affect the performance of the banking industry, especially when people will choose cryptocurrency over banks, Thus, creating friction between the two-party. There is an article though not directly related to cryptocurrency's effects on banks through it, we can foresee that technological innovation and development leads banks to suffer instead of it to further develop.

According to Digitalist Magazine in the Article: 4 Top Challenges Facing the Banking Industry

One of the challenges that the banking industry has is increasing competition from financial technology companies. I might be biased here, but the technology behind cryptocurrency is comparably more efficient in terms of sending and receiving money locally and internationally. In banks, they always need verification for security purposes, if one needs to send and receive money, they need to take a lot of process for it. In terms of withdrawal, though banks have their online systems, it takes days from PayPal to send money to bank accounts and lastly, the transaction speed of crypto is quite far beyond the transaction speed of bank, sometimes, they need to transfer fiats from bank to bank compared to cryptocurrency.

In addition, there is a regulatory pressure that banks are required to follow in order to keep up with the increasing requirements. Though the regulation is healthy for a system to run smoothly, it is ironic that this regulation is the reason why banks are slow in processing the transactions from people. On the other hand, through cryptocurrency, it's decentralized characteristics without heavy regulation and no regulation at all by any third party makes people feel the real smooth transaction and conveniency.

I will ask you this question. Would you rather transact locally and internationally through banks? or grab the opportunity to see the underlying benefits we have through crypto?

[franky1]

'banks' is subjective word.
money srvice businesses would just remove local branches/stores and just have people use a card to make payments and web access to manage the custodian funds.
and while MSB's have laws that people are paid wages in fiat and taxed in fiat, and X amount of custodian fiat is insured. people will always use these MSB services.

even if MSB's remove thir mysql databases and replaced it with blockchains ledgers, they stil would use multisigs so they can remain custodians and charge fee's for services and transaction fees for payments. so i dont see 'banks' vanishing

however people can have an alternative to custodian managed funds.

as for trump and his nonsense speaches.
bitcoins VALUE is not volatile. bitcoins PRICE is

its like gold. the underlying VALUE is stable and many traders get to trade cose to value and do it long term, but the public spot price that individuals pay (the speculation layer above value dos change at a whim

again same for gold, same for commodities same for forex
yep fiat is just as volatile. bread and milk change their prices all the time nothing stays the same forever
even though the underlying value (milk/wheat wholesale from farmer is more fixed)
farmers get a fixed price per period.

yet the public price can be a loaf of bread being $2 in one store $1.50 in another store in the same town and $2.25 in another store.

yet we have gotton use to variable exchange rates when forexing money for vacations. they 'buy back' rate after just a wek is never the same as before the vacation
we have gotton use to the variable prices of goods when going to the store.

people if they really thought about it. would actually see that there are things put in place to not make us realise that fiat is so volatile.. but it is

[clickerz]

Well, that's good that bitcoin is having some backing from US politicians. A leader should be forward-looking, visionary and keep on exploring ideas that be beneficial for the future and that is blockchain technology. China is embracing now, and others to follow. If you want to keep up with the competition, they must be proactive and keep on researching and innovative to be ahead of the game.

[Juggy777]

I will ask you this question. Would you rather transact locally and internationally through banks? or grab the opportunity to see the underlying benefits we have through crypto?

@Wintersoldier it’s very difficult to get everyone on board when it comes to bitcoins, while some politicians support it some will continue to object it. I’ll prefer to transfer via crypto’s because when I’m transferring via bank then I need to pay them hefty fees, but when I do the same transaction via crypto’s then I need to pay few cents or few dollars only in the form of fees. Also read this millionaire story who transferred bitcoins worth $468 million, and paid total fees of $400 only which says it all why crypto’s should be preferred.

https://thenextweb.com/hardfork/2019/07/29/bitcoin-whale-moves-468-million-crypto-fortune-for-less-than-400/

[Mometaskers]

I believe this is not the first time he mentioned it in a non-positive way. He might have to change his stance if he wants to check China (if he even wanted to).

At this point I think he's just saying these coz he don't like it. He's a businessman and knows that people's demands affect the prices of everything. As for whether I'd like to transact more in crypto, yes of course. Not saying I'll never use banks again but I like options.

[Artemis3]

I believe this is not the first time he mentioned it in a non-positive way. He might have to change his stance if he wants to check China (if he even wanted to).

At this point I think he's just saying these coz he don't like it. He's a businessman and knows that people's demands affect the prices of everything. As for whether I'd like to transact more in crypto, yes of course. Not saying I'll never use banks again but I like options.

The ridiculous thing is calling Bitcoin as "backed on thin air", while ignoring, or pretending to ignore the whole fiasco of the fractional reserve banking, where banks produce money "out of thin air"...

If the world starts learning about fractional reserve banking, and people start withdrawing, the system would collapse. Unless people withdraw slow enough to give time to the banks to shrink...

Think of that practice of withdrawing bitcoins each Jan 3rd, that would crash the world economy if it were done to fiat. Your money is NOT in the bank! Most of the money doesn't even exist!

[Mometaskers]

I believe this is not the first time he mentioned it in a non-positive way. He might have to change his stance if he wants to check China (if he even wanted to).

At this point I think he's just saying these coz he don't like it. He's a businessman and knows that people's demands affect the prices of everything. As for whether I'd like to transact more in crypto, yes of course. Not saying I'll never use banks again but I like options.

The ridiculous thing is calling Bitcoin as "backed on thin air", while ignoring, or pretending to ignore the whole fiasco of the fractional reserve banking, where banks produce money "out of thin air"...

If the world starts learning about fractional reserve banking, and people start withdrawing, the system would collapse. Unless people withdraw slow enough to give time to the banks to shrink...

Think of that practice of withdrawing bitcoins each Jan 3rd, that would crash the world economy if it were done to fiat. Your money is NOT in the bank! Most of the money doesn't even exist!

I still find it hard to wrap my head around it but yes, banks basically just conjure money out of air. Bitcoin, for all its volatility, we know it's basic supply and demand. What would be funny if all these attacks on bitcoin would cause "normies" to research it and then the current monetary system.

[bittraffic]

Rand Paul i think had been a bitcoin supporter since time. I remember reading articles in the past he was even against that SOPA bill as well.  Someone should really explain blockchain and bitcoin to these politicians its not that hard to hire speakers who can do that andreas antonopolous would be delighted to do so to erase what Trump had input to them.

Transferring to funds to local banks are much easy to do unless you have an astonishing amount that they couldn't believe you have. Least of all international banks.

[Spendulus]

This thread appears to link political ideas with crypto currency use.

There really is no such link. People use what they want to use, and banks and institutions adjust or change or die.

[audaciousbeing]

I would disagree that banking is having a difficult time catching up because that is not it at all. The bank occupies a sensitive role in the economy and that is why there is a stiff noose around its activities. If you would want to know, there is no promotion, initiative, service offering that the bank can offer without getting approval from the Central Banks even to the extent of hiring people into some top executive role. Which means if the bank is slowing down, its because the regulators are not giving them the green light and its as simple as that. A multi-trillion dollar industry with access to unlimited funds can hire the best brains to design and won't even mind hiring an entire graduating class to have an edge if allowed