More Banks maybe Closed and cryptocurrency exchangers are new way of banking

[Dragonfund]

The government will not allow Banks to close, because the government gets many benefits from banks. While cryptocurrency is
very difficult to regulate, therefore it is not easy for crypto to be used as payment. As a crypto supporter from the start, I wanted
crypto to replace fiat, but it turned out that my wish was difficult to achieve. Knowing that the government disliked crypto from
the start, even some of the country's leaders considered crypto scams.

Cryptocurrency isn't difficult to regulate, there is something you need to understand. Before approval of an item that's widely used across the globe, government critically observed them before they approve or reject them. That was exactly what happened to bitcoin when it pick to $20k in  2017 and then dump back to $3k in 2018, it was then China started raiding cryptocurrency exchange in their country because they think its a pyramid scheme and used by fraudulent activities.
ICO also contributed to the development, so many millions of funds where cartaway by scammers, this is why they took the decision, enough is enough.

Governments doesn't dislike cryptocurrency, they dislike the way its created because they can't control it and because they are used to launder money through kidnappings and drug businesses with privacy coins such as monero. You wouldn't be happy when your family get abducted and a demand of $100k worth of monero 

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[Yatsan]

Although it is possible to happen, still it is far beyond to perceive and state that more banks will become potential for closing and exchanges will become the new way of banking system because not all are still adaptable on coping up upon using crypto for there are still certain individuals who are still reliant on the current banking system and many are still choosing that way how it is done and does not perceive of getting into crypto until it becomes the only option available to make them forcefully adapt into the new system which is being tackled in here. Banks and exchanges can co-exist without letting the other side die just for a new system to become dominant and be widely use by people. All of us have different perception and stand that must be respected upon choosing the system we wanted to be with.

[uneng]

Actually it's impossible. Many banks and the main ones are national public banks, what means their employees are public employees which have lifetime contracts with the government. These people can't be dismissed because the law protect them, so the existence of the banks are justified. Maybe for the next generations it can be possible, but it will take a long time yet...
Anyway it's a nice idea. Just imagine how much economy a country could save by replacing the traditional banking system by a virtual one.

[tbterryboy]

But facing the fact that traditional banks will never be replaced by cryptocurrency even though the technology is more revolutionary.  The regulations given by the government will not support cryptocurrency to move freely, because in some developing countries cryptocurrency is only allowed to trade commodities and cannot be used as a substitute for fiat.  It is difficult and will not be able to replace traditional banks, because government profits also come from banks, while cryptocurrency cannot be controlled by anyone.

The thing is that one can keep Bitcoins and no one will ever know even if crypto is banned in their countries. I mean this ain't paypal where you are being monitored so anyone can use the peer to peer currency. Now coming to the point that we cannot use crypto at local shops and merchants, so you can easily buy your local fiat when and whatever amount you need.

I mean you keep crypto balance and once you need money for fiat spending you can easily convert and get some. Then you also have sites like bitrefill and others who are making it easy to buy anything with crypto itself. You can recharge, do shopping and buy almost any kind of gift cards from them and I have used them frequently, they are quite good and delivery is instant.

[fullhdpixel]

I doubt it. Banks will be developed soon as we know that they're implementing online banking right now, creating an exchange will be easy for them and can easily be accepted by the government.

Banks will still exist in the future with different features that came from cryptocurrency. They will do everything so banks can't be left behind.
So I really don't think that it will be lost its existence in the future, people are good at innovating nowadays and I bet they can make a system that will be liked by their users.

I actually heard governments are making their own crypto based coins. You might want to search about them as "CDBC tokens" and that is aimed at working a little bit more controlled and centralized I believe but based on blockchain.

I am not sure how successful such ideas are going to be but it shows that even the legal departments are aware of the rise of cryptocurrencies and how they could replace and diminish the dominance of banking system as a whole.

Still think there is time for crypto to replace banking system but we are already towards a more digital age and decentralization has made it easy for everyone because there are no owners and controllers yet safe and secure.

[shata]

Why do you think that banks will close? What gives you a reason to say that? Do you know what is a bank? Let me remind you, after all, bank is a place that lets those who have a surplus of money to deposit and borrow it to those who have a deficit of it, i.e. it's a middleman that gives the lender a guarantee of profit despite the fact whether borrower pays money or not.

There are national banks (for example FED) behind the commercial banks, it's a huge system and cryptocurrencies and Binance can't abandon it and take place of it. First of all there is no way that can do it with their possibilities and resources and then - a small change in law and it's enough to stop the entire process + not many people will come to support it cause most of the population don't know about bitcoin or cryptocurrencies and if they know, a high percentage of them think negatively about it.

And stablecoins? They are pure shit, crypto version of USD.

On point!

This is why I think most people in cryptocurrency industry does not understand furtherly the system or the things they are talking about.

Cryptocurrency exchanges cannot become the replacement of banks nor a new way of banking. Specifically Binance, it is originally created as exchange, where people can buy and sell crypto assets, hold their assets there, overall trade there. Though Binance offers some kind of staking, apy defi things that offers more interest in banks, it does not mean it can replace bank. It depends on how you consider it. If you think Binance is a good place to out your money in, then so it. But remember, there are always a risks. Even Binance had a SAFU, it is an online website and it is vulnerable to hacks. What I want to say here is that do not put all eggs in one basket.

Banks on the other hand is not just a tool where you put money in there and done. No! If you don't know, bank also helps the economy in every countries.

Also to think of that Foreign Exchange is the largest marketcapitalization and volume traded everyday. And to think that Banks are the major players in the ForEx market.

Overall, there is still a lot to consider before you can conclude or in the near future, crypto exchanges will reolace banks. They will always be there, as a medium of trading but not as what the banks can do.

[Kasabus]

I doubt it. Banks will be developed soon as we know that they're implementing online banking right now, creating an exchange will be easy for them and can easily be accepted by the government.

Banks will still exist in the future with different features that came from cryptocurrency. They will do everything so banks can't be left behind.
So I really don't think that it will be lost its existence in the future, people are good at innovating nowadays and I bet they can make a system that will be liked by their users.

I actually heard governments are making their own crypto based coins. You might want to search about them as "CDBC tokens" and that is aimed at working a little bit more controlled and centralized I believe but based on blockchain.

I am not sure how successful such ideas are going to be but it shows that even the legal departments are aware of the rise of cryptocurrencies and how they could replace and diminish the dominance of banking system as a whole.

Still think there is time for crypto to replace banking system but we are already towards a more digital age and decentralization has made it easy for everyone because there are no owners and controllers yet safe and secure.

Even if i'm a believer of crypto, but i still don't see crypto exchangers replace the banking system. Not now or even in the future. If we think that crypto developers are looking forward for its progress, how much more with those banks that have been operating for many years already? I'm sure they are also thinking on how to improve their services and might be possible that crypto will be integrated into their own system in the near future. I'm just trying to be realistic though.

[atjiat]

In any case, the banking system is still very far from cooperating with cryptocurrencies. At the same time, it is necessary to take into account the real relations of the state and the government to cryptocurrencies, although in recent years there have been more and more statements by officials that banking structures will monitor all funds that bind the cryptocurrency of their particular bank user, thereby gaining the opportunity to verify the legality of the income received a specific person.

[Firefox07]

I still believe that the banking industry can still recover. And crypto currency exchangers will take a long time before it can change the banks.

[bryant.coleman]

I still believe that the banking industry can still recover. And crypto currency exchangers will take a long time before it can change the banks.

Although I would not compare the banks with cryptocurrency exchanges, the truth is that the banks are not in good shape. Many of them are surviving, just because of the bailouts from the government. Loan defaults have increased to such an extent that the banks are no longer able to keep a balance between deposits and loans. On top of that, the margins have decreased due to the decline in interest rates.

[sapnu]

I still believe that the banking industry can still recover. And crypto currency exchangers will take a long time before it can change the banks.

Although I would not compare the banks with cryptocurrency exchanges, the truth is that the banks are not in good shape. Many of them are surviving, just because of the bailouts from the government. Loan defaults have increased to such an extent that the banks are no longer able to keep a balance between deposits and loans. On top of that, the margins have decreased due to the decline in interest rates.

Banks are still important in the world, we cannot just say that it is better to close because there are some cryptocurrency exchanges. Banks are used for traditional transactions and we all know that cryptocurrency is not that ready to use instead of using banks because cryptocurrency still needs to be innovated and become recognized by all countries as well. We can say that there are still countries that are prohibiting the usage of cryptocurrency and that is not good for everyone if they try to close the banks. Also, the knowledge about cryptocurrency is not known by all people, so it is hard to do a quick change.

[Psynthax]

If only exchange is truly viable option to save money which I don't think it is. Way too much hacking occurs within few years and bank usually don't tolerate hacking like that. Also, the regulation is too lose meanwhile these exchanges are mostly private owned. I don't really think thats a good idea to begin with. Exchange is "exchange" and bank is "bank", two different things.

[Vishnu.Reang]

Banks are still important in the world, we cannot just say that it is better to close because there are some cryptocurrency exchanges. Banks are used for traditional transactions and we all know that cryptocurrency is not that ready to use instead of using banks because cryptocurrency still needs to be innovated and become recognized by all countries as well. We can say that there are still countries that are prohibiting the usage of cryptocurrency and that is not good for everyone if they try to close the banks. Also, the knowledge about cryptocurrency is not known by all people, so it is hard to do a quick change.

It is retarded to say that cryptocurrency exchanges will replace banks. We need banks to deal with currency. Bitcoin on the other hand, is an investment asset and not a currency. You can compare cryptocurrency exchanges with stock markets, but not with banks. Banks are an integral part of the modern economic and financial system, and they will survive as long as humanity exists on this planet. 

[kawetsriyanto]

Are you sure about it? Some banks may be closed, but this is not the central bank or the state bank by the government, or even the big banks. I don't think that exchanges will replace the existence of the banks of course. But it may really influence the condition of the financial system that will also influence the bank. In this case, we can at least take the positive sides of this, decreasing the power of the bank, isn't it? 

[Sithara007]

Are you sure about it? Some banks may be closed, but this is not the central bank or the state bank by the government, or even the big banks. I don't think that exchanges will replace the existence of the banks of course. But it may really influence the condition of the financial system that will also influence the bank. In this case, we can at least take the positive sides of this, decreasing the power of the bank, isn't it? 

The "central bank" (also known as reserve bank in countries such as India) is not a bank as such. It is more like a treasury, which decides the supply of banknotes and the interest rates. Ordinary banks (both public-owned and privately owned) are vulnerable to economic meltdowns (as we saw during the crisis in Cyprus). But although some of the banks may be forced to close down, they are an essential part of the current financial system and they will continue to play a major role at least for the next few decades.

[mersal]

Cryptocurrency exchanges are good platform but they are not really good enough to replace the traditional banking system because banking system mainly operates based on the profits making from the interest rates for the loan money which they are given to the customer earlier and the important factor is people are in need of loan for any kind of start ups which includes the big companies.

Well I feel that both system will be helpful when they co exist here and people can choose what they really want.

[Psynthax]

This is not gonna happen.

Just think about it, an exchange that could go run off with your money anytime becoming the new bank handling trillion of dollars. if not disaster then i wonder what expect from it.

Even right now we don't recommend saving up money in exchange for too long, let alone making it as our place to save money

[jaberwock]

Are you aware that there are a lot of central banks that said that they are working on stablecoins?
So, what are you going to say about the central banks’ stablecoins? Cryptocurrency exchanges are not banks, they are just exchanges and they are even relying on banks to do their Businesses, they are just businesses and can’t be doing the work of banks, they won’t be the one holding their business money and holding your money as well, nah all those money goes to the bank.

So, why are you saying that banks will be no more? If it’s going to be a death battle you already know that crypto exchanges especially the centralized ones are more likely to lose the battle.

[Taskford]

I don't know how did you relate the traditional banks and the cryptocurrency exchanges and I wonder how it will replace the banking system while the real fact here is we cannot totally trust exchangers due to some hacks and any possible attacks. I also wond if there's a person can risk to put all their wealth on a platform where the security is so questionable that's why it's really hard to think about the replacement of the bank since most people prefer to put their money in traditional way because it was more secured.

[Mauser]

I don't know how did you relate the traditional banks and the cryptocurrency exchanges and I wonder how it will replace the banking system while the real fact here is we cannot totally trust exchangers due to some hacks and any possible attacks. I also wond if there's a person can risk to put all their wealth on a platform where the security is so questionable that's why it's really hard to think about the replacement of the bank since most people prefer to put their money in traditional way because it was more secured.

The problem banks face in my country is that there is no more money being made with the savings business. Interest rates are so low that banks are paying any money on deposit anymore. Charging fees became more and more important in the last 12 months because issuing loans is also not in such a high demand. Due to the corona pandemic people cut back their spending drastically and don't really want to take out new loans.