United Nation Expert admit Digital Currencies Could Replace Bank Accounts

[thesmallgod]

This is the opinion of Massimo Buonomo, a UN global blockchain expert who added that the need for a bank account may soon be "fully removed by digital currencies and especially the central bank's digital currencies (CBDCs). Buonomo said that banks and credit card companies have had a duopolistic approach to digital payments for many years, but the advent of digital currencies can mean that users can circumvent them completely, he said in an online board on Thursday about the future global post-coronavirus economic structure.

He said that low-interest rates, which central banks are needed to facilitate increased borrowing, will speed up the cycle because they enable account holders to chase other countries for returns. For one, the Bank of England discusses the idea that interest rates are paying in negative territories, which suggests savers can compensate the banks to keep funds in their bank accounts. American President Donald Trump recently called them a "gift" for negative rates.

Interest rates are the one remaining killer feature of bank accounts, according to Buonomo. Yet in the context of digital currencies that can accept online purchases as quickly, they are in danger of being redundant.

Source: https://finance.yahoo.com/news/blockchain-bites-why-un-federal-163430366.html

It is becoming evident that things will begin sour for Banks. The sooner they realize this the better for them

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[buwaytress]

Yes, the world certainly has done its fair share of listening to UN experts, World Bank experts, etc.

I'm not sure about interest rates being the killer feature though. For me, and anyone I know using bank accounts, it really is the security and government insurance on the deposits that keeps us savings.

If we wanted higher interest, we'd put it in state trust funds or bonds.

[Jating]

And the sooner they realised, the sooner Central Banks are going to imposed crypto regulations to somewhat put a dent on crypto imminent rising. It can slow them, but I doubt that the can really stop this crypto revolution.

Cashless society, CBDC's will be the future. However, don't think that banks will go obsolete though, they will stay for sure, but their influence on people will somewhat reduce as we shift to crypto in the next 5-10 years.

[20kevin20]

Except these digital currencies won't be Bitcoin, Monero or any other pseudo/anonymous coin. It'll be centralized currencies, which will be worse than fiat but might help Bitcoin a bit on the other hand as we all move fully digital.

I hate to know there's a private ledger somewhere, a list of all the things I have bought using my debit/credit card hence why I prefer cash for payments. Full digital means lots of advantages and lots of disadvantages at the same time, but to be honest I really believe the disadvantages are way too many to be ignored.

But I wonder, what does this mean for Bitcoin and other cryptocurrencies? Yes, we might be able to do transactions face-to-face (barter, for example) with others at any given time without having to obey to any abusive rule but a digital currency means worldwide regulations, which means cryptocurrencies will probably be included in them too..

[Lance203sin]

Banks will never allow it. Maybe they will evolve into crypto banks, but they will exists for sure

[roberthays]

I think this was rather expected however I don't believe banks will entirely disappear. They'll most likely adopt digital currency in some form that will keep them relevant and required.

[Sebas.tian]

Banks will never allow it. Maybe they will evolve into crypto banks, but they will exists for sure

It doesn't matter if they will allow the existence of cryptocurrency or not but they can't do anything to harm it. They have done their worst and have seen that its impossible to ban it. For the Banks to join the race into digital currency will make the journey of Bitcoin move even faster than we think. Let them join the movement before its too  late for them, for them creating their own coins will further create more eye openings to customers of their dubious act during the era of fiats.

[Sanitough]

Yes, the world certainly has done its fair share of listening to UN experts, World Bank experts, etc.

I'm not sure about interest rates being the killer feature though. For me, and anyone I know using bank accounts, it really is the security and government insurance on the deposits that keeps us savings.

If we wanted higher interest, we'd put it in state trust funds or bonds.

I agree with you, interest that our deposits will earn is nothing compared to what the bank can earn from using our funds in their lending business.
Personally I have a bank deposits but I am not counting on its interest earn in a quarterly basis, I'm only using bank to secure my money and nothing more, if I like to grow my funds, I would invest it in a business or in crypto since putting your money in the bank is not investing, it's just a savings.

In addition, when you put your money in bank and you are living in a country with bad economy, the interest rate would not be enough to save you from inflation, and that's the reality in our country.

[thesmallgod]

And the sooner they realised, the sooner Central Banks are going to imposed crypto regulations to somewhat put a dent on crypto imminent rising. It can slow them, but I doubt that the can really stop this crypto revolution.

Cashless society, CBDC's will be the future. However, don't think that banks will go obsolete though, they will stay for sure, but their influence on people will somewhat reduce as we shift to crypto in the next 5-10 years.

They are already trying to restrict the use of crypto but things seems not to be working in their own favour but rather crypto is booming day and night. For instance in my country, local exchangers will always give to traders not to include any word indicating a possible crypto transaction on bank teller when they want to purchase crypto in order not to get the local exchangers account frozen but upon this crypto business is still booming. We all Know bank won't because of crypto go extinct but at least they should be more friendly to crypto

[BrewMaster]

the need for a bank account may soon be "fully removed by digital currencies and especially the central bank's digital currencies (CBDCs).

i don't see anything changing here! not to mention that we are already using "digital" currencies. in our day to day purchases we barely ever use physical cash anymore. it is all a "digital currency" created and controlled by "banks". changing the current digital form from one centralized database version to another centralized database (blockchain) will NOT change a damn thing. and it still is going to be another form of a bank account.

[20kevin20]

It doesn't matter if they will allow the existence of cryptocurrency or not but they can't do anything to harm it. They have done their worst and have seen that its impossible to ban it. For the Banks to join the race into digital currency will make the journey of Bitcoin move even faster than we think. Let them join the movement before its too  late for them, for them creating their own coins will further create more eye openings to customers of their dubious act during the era of fiats.

They've already harmed it through regulations and by letting some abusive stuff happen "thanks to" them. It's never late for them, they already have a strategy put in place and it already works by slowly pushing laws that go in contradiction with Satoshi's ideas and vision.

They'll "join the movement" by falsely advertising digital currencies on Blockchain as if they're like (and better than) Bitcoin, fooling most people into believing they're entering a new, "better", revolutionary financial change on a decentralized network when instead they'll only join a more privacy-stripping currency than what we currently have today.

In my opinion, it's pretty much check-mate for us.

[buwaytress]

I agree with you, interest that our deposits will earn is nothing compared to what the bank can earn from using our funds in their lending business.
Personally I have a bank deposits but I am not counting on its interest earn in a quarterly basis, I'm only using bank to secure my money and nothing more, if I like to grow my funds, I would invest it in a business or in crypto since putting your money in the bank is not investing, it's just a savings.

In addition, when you put your money in bank and you are living in a country with bad economy, the interest rate would not be enough to save you from inflation, and that's the reality in our country.

Exactly! We who have good interest rates in our banks know it's because our money's basically devaluing over time. My country used to publish an annual rate of about 1% inflation over my working lifetime, so to get 3% or so annual interest seems as if we're making money, right? But the true cost of inflation? A cup of coffee, a bag of rice, kilo of meat, all them just keep getting pricier and pricier. Interest was never about making more money for us, but to help keep inflation at bay.

[Sanugarid]

And the sooner they realised, the sooner Central Banks are going to imposed crypto regulations to somewhat put a dent on crypto imminent rising. It can slow them, but I doubt that the can really stop this crypto revolution.

The revolution that's been in cryptocurrency potentially has enlightened these experts, imagine they were the ones who's calling it a bubble, ineffective due to somewhat, competes with the bank or more.  There is a possibility of CBDCs getting into our way, coz I've seen a lot of trials made lately. However things might change if other countries go against with it, like India who is trying to reconsider the banning on crypto again.

Cashless society, CBDC's will be the future. However, don't think that banks will go obsolete though, they will stay for sure, but their influence on people will somewhat reduce as we shift to crypto in the next 5-10 years.

Cashless society is our only dream, perhaps for now, but eliminating the banking system is not ideal for me since it is working with a lot of complexion for the society.

How about changing the banking system to include crypto?

[DoubleEdgeEX]

Actually, if you look at China, the system they have with WeChat and AliPay is already very close to a CBDC. YOu can easily send Yuans from one wallet to the other, the only difference is that´s not on a blockchain and it could last a little. They even got their Hong Bao, means red envelops, they send money with digitalized. And today , this come out:; https://cointelegraph.com/news/china-could-roll-out-its-cbdc-without-anyone-realizing 

[Reid]

Interest rates of .01 or .1?
For small savings, it would not matter.
Their customers don't even care about it anymore. They just want their money to be kept safe somewhere and banks had been the number 1 choice with traditional thinking.

They all know what the future is, they just don't want to admit it or apply it yet.
If people start realizing other options, the bank will feel it so bad they would be rushing for a change.

[Ozero]

Our world is now moving towards the increasing use of digital technology and digital methods of financial payments. However, this does not mean at all that bank accounts can completely disappear. Stable state coins should show themselves well as a means of payment, but in many cases the need for bank accounts will still remain. First of all, this applies to legal entities, that is, enterprises and organizations of all forms of ownership that will be forced to continue to have bank accounts and use banking services for financial reporting to tax authorities and audits.
Also, the use of stable coins by individuals does not exclude the simultaneous use of bank accounts. And state bodies will not be able to do without banks and bank accounts at all, since accounting and control will exist in any state.

[DoubleEdgeEX]

The term "Expert" slowly becomes an insult...

As for central banks, they will follow the Chinese way of simply digitalize their transactions. South Korea already launched their digital currency comittee to work on it and the EU and USA will follow.

As for "interest rates are paying in negative territories", that´s already a reality in some European countries, e. g. Germany. The perceived safety and government insurance on the deposits on savings is just half-true since it´s usually capped, Austrian banks just secure up to 100K Euros.

I think it will now replace old fashioned bank accounts but simply change them into digitalized bank accounts. The way of doing business won´t change much, just the underlying technology will.

[jossiel]

The term "Expert" slowly becomes an insult...

Yeah when someone is telling some of his predictions related to bitcoin and blockchain technology. Well, about this thing, aren't we telling this for years?

Until, there are circumstances that our belief starts to change. But due to this pandemic, it's safe to say that the digital currencies shall emerge worldwide.

One choice is going to crypto and the government shall adopt it or create their own crypto which is happening already for China and EU through CBDC.

[Mpamaegbu]

One step at a time. Before long, the crypto industry will be back to its golden era of 2017 as positive reviews get higher by the day. I ain't talking about mass adoption for Bitcoin alone, it should be encompassing before we can shout Uhuru. However, I don't want people believing that cryptocurrency can override Fiat and bank transactions completely. It can dominate fiat but not annihilate it (because it truly can't). Both should exist side by side. Interest rate isn't a deciding factor to want to eliminate banks. After all, miners also charge a certain amount like banks do too.

[MCobian]

I also agree with Massimo Buonomo who said there is a possibility that the digital currency will replace the bank. But not because of
interest rates, rather banks restrict their customers financial transactions. Whereas today people want something that is effective and
efficient, transactions with digital currency are very practical. Imagine we only need mobile phones and an internet connection can send
money abroad is only minutes away, at a lower cost. But I believe digital currency is not bitcoin, because bitcoin decentralization that
cannot be controlled by the government. I believe that the replacement bank is a centralized digital currency.