Can Blockchain Replace Banks?

[Cleuza Flora]

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[trickyriky]

Blockchain technology can be integrated into the banking services easily. I guess you are rather asking if blockchain payments can replace fiat and banking transactions. If this is the case, then my answer is no. The usability of cryptocurrencies around the world is nowadays much lower than the usability of fiat currencies, and people are still depending on banking services for fiat transactions.

When the seller and the buyer plan to complete the transaction, they are looking for an intermediary who will monitor the honesty of the agreement. In financial transactions, the bank guarantees that the money will not go anywhere and will reach from the payer to the recipient. The bank also issues a confirmation of payment. To this end, financial institutions record transaction information in their databases.

Blockchain allows you to do without intermediaries so it can replace banks.

[freedomgo]

Bitcoin (and other cryptocurrencies) can replace some of the functions of banks, but not all. Bitcoin can't make loans, for example.

Ethereum can replace banks.

Nope it can't. The elite will not accept this, and they will take it down. I love Ethereum, but i think that the fiat money is still too strong. Just ask people in the street and you will know.

To make it easy, let's just compare the percentage of adoption in fiat versus bitcoin, I think of the total 100% of fiat users there's less than 5% only for crypto users all over the world, and that would clearly say that fiat is dominant over bitcoin and it's impossible bank will be replace.

The government supports bank, they make money from bank and in fact they have a public bank which is called a central bank to oversee all banks if they comply with the rules and regulation, same thing would happen with crypto business as we all convert with fiat and with that, we all need a 3rd party to facilitate it and that could be the bank or other financial institution.

[sinta23]

for some functions, I think blockchain is indeed superior to the current bank. in fact, that opinion I found in the cointelegraph article, which said that Toronto said that bitcoin is more efficient to pay taxes than bank cards. well, that might be a small example.

reference: https://cointelegraph.com/news/bitcoin-payments-6x-cheaper-for-municipalities-says-canadian-exchange

although it cannot be used as a strong grip, I think the potential does exist. it's just that, some people say that some of the bank's strengths that are hard to beat are trust, stability, service, loans, and many other things. however, in the case of transactions, blockchain might be better, it's just not enough to replace the bank.

Some points such as decentralization are indeed beneficial and this can be a transparency that can be checked by anyone who transacts the public. agree with your opinion, that in this case some points such as loan services and also change the system that has been formed is not an easy thing

[yoseph]

Blockchain technology can be used by banks, but it can't replace banks in my view. People around the world are still depending on fiat currencies and on banking services a lot more than involved with cryptocurrencies and blockchain transactions. So it will take a long time until the popularity of crypto becomes competitive to fiat and banks.

I agree, Banks are essential to the development of the economy of every country and cannot be just replaced. The blockchain OP is talking about is  technology which can be utilized by the banks so that their ledgers is transparent and can be seen by everyone.

[jeraldskie11]

The creation of blockchain came with possibilities and predictions of a future where intermediaries could be eliminated entirely. It is capable of executing millions of transactions within seconds at a lower transaction cost and requires no centralized authorization.

With the blockchain trend going on as strong as the moment, is it possible that blockchain will replace banks any time soon in the future?

More here: https://www.hb-wallet.com/post/2018/12/20/can-blockchain-replace-banks

I don't think so. Here in our country, blockchain is not yet legal nor illegal. They allow cryptocurrency but we can't use it directly for buying items. So I think they should accept first in our country that the blockchain is allow for buying anything and may people choose Blockchain rather than Banks.

[suzanne5223]

With the blockchain trend going on as strong as the moment, is it possible that blockchain will replace banks any time soon in the future?

Question sounds too dumb actually yet it has nothing to do or make such comparison because blockchain technology can be integrated to banking industry.
The question would like be, does banking industry will apply or integrate blockchain tech? This is the main question that should be answered.

The OP question does seems dumb cause Blockchain was not a treat or an opponent to the banks but it was a technology which will help banking services more effective.

We havent seen yet that a bank do apply it.

There are some banks which have already integrated the Blockchain systems to there platform. Banks like Deutsche Bank, BNP Paribas, Citibank and Barclays.

[imstillthebest]

With the blockchain trend going on as strong as the moment, is it possible that blockchain will replace banks any time soon in the future?

Question sounds too dumb actually yet it has nothing to do or make such comparison

The OP question does seems dumb cause Blockchain was not a treat or an opponent to the banks but it was a technology

thats right its a technology , this is what the guy above wants to explain  . blockchain is a technology and has nothing to do or related with banks because banks are a working busines/company/institutions or whatever names you call it  but your still right and i agree with you that this its not a dumb question , i think the op is just confuse or have done some errors about posting this topic  , i think what op really means is if there is a posibility that banks can integrate with blockchain or can blockchain integrate with banks ( vice versa )

[The Sceptical Chymist]

I’ve seen threads like this for at least a couple of years, and I suspect this question has been asked since the early days of bitcoin.  But here we are, 10 years after bitcoin’s creation, and banks still don’t seem to know what to do with bitcoin, blockchain technology, or any other crypto—and people are overwhelmingly still using banking services more so than cryptocurrency.  I don’t think the chronically unbanked population has even adopted bitcoin as an alternative.

Theoretically, bitcoin (or blockchain technology) should be able to substitute for banks but it’s never going to happen.  Why?  Governments would not allow people to abandon banks in favor of a currency neither of them control.  If there was even a hint of this happening, you can bet your bottom dollar that there would be new laws enacted to prohibit citizens from using crypto.  It’s true that bitcoin can’t be stopped, but it could be made illegal.  Easily. 

Both the banking system and all governments have a vested interest in keeping people using fiat money.  There’s no way in hell bitcoin is going to stand in their way.  And lastly, people just aren’t using bitcoin for anything besides an investment (which I support, BTW).  Banks, fiat currency, and the governments that keep both of them afloat are in zero danger.

[jakoylantern]

The creation of blockchain came with possibilities and predictions of a future where intermediaries could be eliminated entirely. It is capable of executing millions of transactions within seconds at a lower transaction cost and requires no centralized authorization.

With the blockchain trend going on as strong as the moment, is it possible that blockchain will replace banks any time soon in the future?

More here: https://www.hb-wallet.com/post/2018/12/20/can-blockchain-replace-banks

For me, blockchain can't replace banks because its a decentralized currency and no one can control it. That's the reason why banks transaction is legal because its centralized and controlled by central banks/ government. Blockchain is a technology that shows us the P2P list of records of blocks, but blockchain can't control the transactions unlike banks that they can control/ know it especially when it comes to the issue of scam and fraud.

[sana54210]

the point here is not about if blockchain is able to replace banks. It is about how efficient the system would be if blockchain is blended with banking sector. I believe that there would be a kind of revolution in the banking sector. Normally people prefer decentralization and cut in the cost of trust but I believe since governments would never want banks to disappear, there could be an intermediate scene.

The banking sector is very wide and filled with lots of intelligent people, people who are highly knowledgeable about the money system and who are high technology inclined, do you think that they will ever fold their hands too and watch blockchain replace their system and make them lose relevance and job?

It is exactly what you said that they will follow, they will only find a way to see how their system can blend with blockchain, and which is why we could see some banks in Switzerland and some other countries already implementing the cryptocurrency and even offering its service to their clients. It is not a bad idea anyway, but I just fear that they might turn the system to the system to operate in a centralized way. Well, we always have a way of adjusting.

[Jorge158]

Perhaps OP intended to ask if Cryptocurrency can replace Banks. Blockchain is a wide technology which can be adopted by apparently every sector of life which include the Banks. And with the increasing growth of the Blockchain and cryptocurrency, it wouldn't be a surprise to see Banks integrating cryptocurrency services into their operations some years to come.

[Janation]

Perhaps OP intended to ask if Cryptocurrency can replace Banks. Blockchain is a wide technology which can be adopted by apparently every sector of life which include the Banks. And with the increasing growth of the Blockchain and cryptocurrency, it wouldn't be a surprise to see Banks integrating cryptocurrency services into their operations some years to come.

Blockchain is a technology, and there is no way that it will be replacing banks instead banks can use blockchain to improve their services to people and its country.

Banks has a lot of things to do when it comes to a country and that is enough reason why Blockhain will never replace it. Another thing is that government will not be in the side of the Blockchain here, banks also helps the banks.

[Argoo]

Neither blockchain as a digital technology, nor cryptocurrency as one of the many products of this technology, can replace banks. Today's banks have a lot of different specific functions, and the blockchain or cryptocurrency has nothing to do with them. Even their usual activities such as legal support of the financial and economic activities of legal entities. Banks issue accounting documents to institutions and enterprises of various forms of ownership, which not only confirm the transfer of money, but also indicate to whom it was transferred, for which payment was made, the number and date of the contract and other information. The blockchain cannot contain this data. However, they are needed for tax authorities and audit.

[Kersh768]

The creation of blockchain came with possibilities and predictions of a future where intermediaries could be eliminated entirely. It is capable of executing millions of transactions within seconds at a lower transaction cost and requires no centralized authorization.

With the blockchain trend going on as strong as the moment, is it possible that blockchain will replace banks any time soon in the future?

More here: https://www.hb-wallet.com/post/2018/12/20/can-blockchain-replace-banks

The assumption with regards to total elimination of intermediaries is a bit blurry simply because we are talking about blockchain in this case. Blockchain is indeed showing advantages over banks with regards to transactions but we should always keep in mind that banks do not tolerate anonymity in which blockchain does. Transactions are well organized and monitored on intermediaries which is an important thing especially if we are referring to transactions, obviously, it secures everything on every transaction. Also, banks are under each countries' governments. They would obviously support it over such changes. In my opinion, despite of the huge potential cryptos and blockchain that we are seeing right now, total replacement won't still happen in the future, and rather coexistence.

[Ayiranorea]

Blockchain is just a pathway while Banks are framework done to fulfill all the financial needs with everything happening on a legally channeled process. Banks getting replaced by blockchain is simply hard to experience in the near future. Maybe this will change as people are losing interest using traditional banks. One of the major reason for the same is, we can use our funds only when they wish and not when we're in need.

[Yatsan]

Blockchain is just a pathway while Banks are framework done to fulfill all the financial needs with everything happening on a legally channeled process. Banks getting replaced by blockchain is simply hard to experience in the near future. Maybe this will change as people are losing interest using traditional banks. One of the major reason for the same is, we can use our funds only when they wish and not when we're in need.

Blockchain willl not replace banks because it will adopt the use of this blockchain technology. There will be changes in the future soon on financing but that does not mean that blockchain will completely replace banks. Blockchain and banking system will intercept to meet the people's need which is speed and efficiency to live life much easier. However, I am seeing a disaster between banks and cryptoccurency with the market's volatility making highly unstable ends.

[boltz]

Blockchain is not here to replace banks let that be clear. Banks will use blockchain for their own good and its nothing wrong with this. A lot of people are confusing bitcoin with blockchain thinking they are one and one but blockchain is the engine that keep bitcoin running and without it bitcoin has 0 value. There are a few chances that some banks will go bankrupt because they will stubborn so hard not to implement blockchain into their own system but again there are winners and losers in every game in every domain.

[HarmonyA]

This could be the main reason why Blockchain technology (crypto) is undergoing some serious setback. Because the funds that are generated by intermediaries (banks) for regulators would no longer be achieved.  Nations are working tirelessly to destabilize blockchain technology, especially crypto in order to maintain the traditional financial movement system. And with the seriousness of fraud attached to this stage of blockchain, it will be difficult to allow it take it full course.

[STT]

Blockchain is a technology, not a system of AI to determine business risk or other person to person required assessments.    I think its been universally accepted that blockchain is a genuine advancement in the secure capabilities of internet transactions.    Most times I hear or read blockchain discussed they also say they do not accept crypto as significant or Bitcoin currency as especially valid for advancement of economies and intend to use blockchain with their own ideas of unilateral and centralized control, which unfortunately loses alot of the benefits people and society could benefit from.
   Banks will always exist just as people who want to borrow and promise to repay in future will always ask for this service to be provided.    Some have tried to make blockchain allow to account for this with contracts or similar but I think the two are separated still and the judgement on credit worth will always be about humans or employees of a company judging whether to take that risk or not.   Obviously on this forum you can ask to borrow on a smaller scale from a person and its done fairly informally but I dont think Bitcoin or blockchain by itself is going to replace banks entirely or even greatly.