What will happen to the banks if people uses cryptocurrencies more than fiat?

[budz0425]

The banks could act as wallet services to hold people's crypto and then use the account value to print more fiat.

I think that when people has choose bitcoin over fiat, before that time could happen national banks and the government already adapt bitcoin as part of our society. Meaning to say, that's why people were already using cyrpto because government also allows it to happen unlike today that we most often bitcoin was use for investment.

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[darkangel11]

Cryptocurrencies still don't resolve the issue of taking loans.

It's not an issue at all. Taking out loans does stimulate the economy, but at the same time it's an aspect of this system and economy that's all based on debt. What happens if you take out a fiat loan and you default on that loan for whatever reason? Right, you'll get marked for life as someone not having fulfilled your duty, which as per this system, will only work against you. In severe cases you can't sign up for a bank account, can't gain access to certain beneficial support that others in problems can get access to, etc. Bitcoin is the exact opposite of that. Regardless of who you are, you'll always be able to make and take payments, and no one can stop you.

If you had collateral that covers the debt and you are free to take payments and do whatever you like. If you had no collateral, the greedy bank has to take consequences and possibly never be able to get their money back.
Bitcoin loans aren't much different from normal bank loans in the way that they work. What you've pointed out as the main difference doesn't actually change that much beside the fact that the lender will now require collateral from yo, or for the loan to be cosigned by someone who can provide it. It will make things more difficult for the lender and also make him more vulnerable and we can all agree that we won't be able to function without loans. Crowdfunding is great, but it will never be enough.

[kimochidesh]

First of all, Banks try to attract new customers towards them by offering them some amazing offers, but if it does not work then Banks will cut down their expenses by closing some branches and firing some employees, shut down some branches So that they could remain in profit.

[exstasie]

The banks could act as wallet services to hold people's crypto and then use the account value to print more fiat.

That's exactly what they'll do. I don't understand all these bitcoiners who think Bitcoin will crush commercial banking. I believe that the vast majority of people still won't understand Bitcoin in 10 or 20 years. Just like today, most newcomers (if not most people) will depend on centralized banking/wallet and exchange services. Commercial banks (like Bank of America or HSBC or JP Morgan) can paint themselves as the deposit banks you've always trusted. Meanwhile, they'll use your holdings to profit, as they've always done.

they will adopt crypto, become dealers, release shitty derivatives, and release fake coins, and claw back their business using the trust the 99% of people already have in banks and the media. If that doesnt work then they will get the politicians they control to ban crypto.

What I'm really interested in--What happens when we get to the "If that doesnt work" part? People aren't prepared for the hammer to come down on crypto, but IMO it's always a possibility.

[Fretcy]

There are more likely chances for the people to use crypto currencies than fiat currencies in the near future as more and more user's are entering the crypto market and they consider the crypto technology more useful than fiat currencies and more merchants and shops are accepting this technology in such a condition bank will be working only in exchange of local currency of the country and people will be depending on cryptos for all other financial dealings in such a situation the banks will have to stop lending as everything is available in the crypto market.

[matanglawin]

If cryptocurrencies will be the basic mode of exchange in the future, what will happen to the banks then?

Nothing that much. It is jist that there'll be only less users of banks. Banks will continue functioning as long as there are people who are using it so even if people will be more into cryptos they can't do anuthing about it. The problem will only reflect to the government since in crypto, they won't be able to tax the transactions for cryptos are decentralized.

[wuvdoll]

This question has been asked many times in the forum and my answer to it seems to be intact .
Bitcoin will not halt the banks of the world . Bitcoin is still a virtual object and  there is still need to convert it into our own fiat for its use for us . No country is ever going to dump their fiat and accept bitcoin in its place . Both the currencies will work simultaneously and so the banks will never be affected by it . There will be some level of updates in the functioning of banks due to introduction of bitcoin , but that would not totally change their systems .             

I do not even see how the dumping of fiat like you said for cryptocurrency would be something that we will ever see.

Yeah, cryptos will become widely used at a good point, but that would still be limited somehow as we know some people will not even have access to it and some would prefer to go the fiat way. However, no one knows the future as anything can happen, but I feel banks’ being totally discarded for crypto is something that would be very hard to see.

[CHENIEN]

It can cause lesser people made transactions in banks. Particularly, cryptocurrencies are more easier to access by using directly hand gadgets. If that will happen, some banks have a lesser transaction and income. In cryptocurrencies, we can made immediate transaction and payments, and it is opposite in banks transaction that before we make transactions we must travel and used enough time to reach locations. In cryptocurrencies, we can access just even at home.

[Blue2012]

Well if people uses cryptocurrencies, I think bank will make way how to adapt in the situation. But I also think that there are still people that will use fiat so banks will still exist and will continue to operate but not as many as what we have today.

[BrewMaster]

i do believe that fiat and the centralized form of currency will never go away. even if bitcoin (or any decentralized cryptocurrency not the centralized altcoins) become more popular and used more often there will still be fiat in some form be used and still be centralized.

that means banks will always be at work.
also don't forget that banks are basically a big business that works with money. they open accounts, give profit on the money you "invest" with them. they give loans and do a lot of things and offer lots of services like credit cards. these don't go anywhere.

[Fedrey]

i do believe that fiat and the centralized form of currency will never go away. even if bitcoin (or any decentralized cryptocurrency not the centralized altcoins) become more popular and used more often there will still be fiat in some form be used and still be centralized.

that means banks will always be at work.
also don't forget that banks are basically a big business that works with money. they open accounts, give profit on the money you "invest" with them. they give loans and do a lot of things and offer lots of services like credit cards. these don't go anywhere.

you pay attention. What difficulties do Bitcoin users face today? And you will understand that with such problems it is not so easy to correct. Today, the Bitcoin transaction has been going on for several days and it will create huge problems for a common person. But not only in this I see the immunity of the crypto currency in society. In other words, I want to say that the Crypto currency is a currency for a certain Circle of people, and not for the whole world.

[gentlemand]

Your average person doesn't have the gumption or skills to keep their crypto safe. It's still alarming to use even if you're well versed in it.

The only way crypto could ever start to reach fiat usage levels would be with bank involvement. For better or worse most want a third party to hold their hand.

[cybersofts]

If cryptocurrencies will be the basic mode of exchange in the future, what will happen to the banks then?

I think the banks must find the way to coupe with the latest blockchain technology to keep running their business because without implementing blockchain in to their monetary system and supply or they would be left behind. Surely, people will massively adopt the cryptocurrencies over time.

[Crypto Lion]

It's either sink or swim for them.

Banks that won't last will continue to make laws and regulations trying to stop cryptocurrencies from being used. But it's already too late for that. So the banks that are unable to adapt will potentially die out in 2020. The banks that adapt and change will become more decentralized and have less issues with transactions and could gain alot of money if they were to just ride the crypto wave.

[reymartH]

Banks will stop to operate. Also at the highest level, governments will be hit hard, as they will no longer exercise the same level of control over the country’s currency.

[Baoo]

Actually, If many people will use cryptocurrencies that would be a major loss for all banks and after that there will be a crisis in the global economy, also this affects negatively to many countries and there will be big problems in different domains.

Furthermore, If many countries cannot smashing all cryptocurrencies, in case that this crisis will achieved than many governments will recognize all cryptocurrencies and become legal, and for me there is a great possibility that this will be achieved in the future.

[TOTOARRO]

they would ether be able to adjust to it or close their bank on the grounds that for beyond any doubt it would influence them to endure a colossal misfortune. likewise they could exist together with cryptographic forms of money to make trade more less demanding. hopefully they will simply acknowledge bitcoin and different digital forms of money.

[Nissan-GTR]

If cryptocurrencies will be the basic mode of exchange in the future, what will happen to the banks then?

Well it depends, of course its good because they are in line with what is in nowadays, massive people were already know Bitcoin, just put their name after it will be a huge impact not loteral but adaptation kf the system may be helpful but in some things this will be prohibited by the government which is because of rapid dump of profit.

[Mister1k]

Your average person doesn't have the gumption or skills to keep their crypto safe. It's still alarming to use even if you're well versed in it.

The only way crypto could ever start to reach fiat usage levels would be with bank involvement. For better or worse most want a third party to hold their hand.

They already tried to initiated their ICO project around here. I do not think that project has been completed or not. You may hear about the Citi bank new york announced the information like they gonna create their own altcoin called citicoin in the mid year of 2017 and recently axis bank team also started their ICO project so wait for some time see according to your expectation. Banks are opponent to the cryptos is the actual truth.

[fulmetal08larz]

If ever the cryptocurrency has been adapted by the people in this digital age we are now, the banks will have no other choice but to accept and embrace it. Surely, the blockchain technology will serve its purpose and the world economy will boost.