Can Bitcoins kill Central Banks?

[Swopon]

No, it can't occur. Bitcoin is in its position and the bank is in its position. Paper currency in banks and virtual currency in bitcoin. I don’t believe Bitcoin has appeared to kill the central bank. The setting of the central bank will not be competent to take it. The government is deeply engaged with the central bank, and the government is not legalizing bitcoin. So there is no explanation for this impression or term.

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[Gyfts]

The answer is simple - no, bitcoin will not kill banks!
Why? Because governments will never allow an uncontrolled entity to replace a government-controlled, formal payment mechanism. The only thing that bitcoin, as a technology, can influence, is to push banks to use part of blockchain technologies in banking technologies.

Governments can try to curb BTC p2p transactions but they won't fully limit it.

The best they can hope for is overload BTC with regulations (limiting trade directly, no anonymous trade, taxing BTC at a high rate). Even then, people would still trade.

https://www.reuters.com/technology/turkey-bans-use-cryptocurrencies-payments-sends-bitcoin-down-2021-04-16/

You see this a lot with authoritarian like governments. They view BTC as a threat and attempt to kill it. But does anyone really believe they succeeded?

[DrBeer]

The answer is simple - no, bitcoin will not kill banks!
Why? Because governments will never allow an uncontrolled entity to replace a government-controlled, formal payment mechanism. The only thing that bitcoin, as a technology, can influence, is to push banks to use part of blockchain technologies in banking technologies.

Governments can try to curb BTC p2p transactions but they won't fully limit it.

The best they can hope for is overload BTC with regulations (limiting trade directly, no anonymous trade, taxing BTC at a high rate). Even then, people would still trade.

https://www.reuters.com/technology/turkey-bans-use-cryptocurrencies-payments-sends-bitcoin-down-2021-04-16/

You see this a lot with authoritarian like governments. They view BTC as a threat and attempt to kill it. But does anyone really believe they succeeded?

The state will not play high-tech "races" to restrict the bitcoin protocol. Everything is simpler - withdrawal to cards - only at certified exchanges, certified exchanges have many regulations - from monitoring transactions to preventive tax withholding when withdrawing to a card, plus - creeps will not give the status of a means of payment. And that's it! You can't buy for the cue ball, if you want to buy, withdraw it through the exchange, pay taxes, no question.
Yes, there will be some "manual" deals or "black" schemes, but it will not be a mass product, well, at least because it will be illegal and it will be a criminal article. Neither the state nor the banks are interested in losing control over finances! And what is important - they have methods of influencing or regulating this issue.

[Princejebs]

Bitcoin is a digital asset controlled by a decentralized economy. On the contrary fiats controlled by the central banks are centralized. Both are running two parallel economy with different mode of operation so in that vibe I don't believe bitcoin can kill central banks block chain gets its value from fiat currency whioe fiat doesn't need crypto to maintain its value although its price can be slightly affected by cryptocurrency.

It depends in some regions. I know of a region where dollar isn't sustainable for the economy. The importers need $$ to bring in goods from foreign countries but the central bank could not cater for its people, now its people need to sort for alternative and that's why they are all going to search for $$ in black market.

The above action has now led their fiat become useless and many has swap their assets into crypto as hedge against inflation. Now, you can see where Fiat depends on crypto.

[MFahad]

Central banks will remain for financial regulations, but the commercial banks that fail to adopt cryptocurrency in the future will be bought over by FINTECH firms that deals on cryptocurrencies. We need to understand that money is an evolution and that fiat has failed the world hence a clamor for a better money.

At the initial stage both the central banks and Bitcoin will co-exists. This means that fiat and bitcoin will be used side by side. When people began to use more bitcoin and crypto, then the fiat transaction will become less and the role of banks at that time will become limited. Slowly the banks will began to shutdown and eventually there will be no banks and no fiat currencies.

[AicecreaME]

The answer is definitely and absolutely, no. Bitcoin can never kill the banks because first of all, banks play a unique role that bitcoin can't offer. Banks existed long ago until today for a reason. It isn't something that you can just abolish because there's something that you see that has a potential to do almost same functions.

Secondly, banks are centralized. They are controlled and handled by the government. And knowing how the government works, it won't allow any other organization or institution to take over and ruin what they have already established.

Let's stop insisting war and competition between the two aforementioned organizations. They have their specific purposes. Both serve as an alternative option one way or another to the majority. Without the banks, economy will most likely suffer. Without the bitcoin community, people would lose platform/medium to generate income and/or to invest with.

[thesmallgod]

Apart from being operated base on different framework. CBN is tasked with providing policies and regulations of financial operation in a country so I do not think CBN can be killed by crypto but rather the CBN will continue to make policies that guide and protect financial establishment and always fight to come combat the dominance of crypto. This is what is happening in many countries today e.g. Nigeria

[CryptoYar]

I don't think Bitcoin will kill the banking system. Rather, Bitcoin helps you manage your wealth and allows you to transfer money without having a third party.

As every bitcoiner needs a bank account so that he can get his local currency by selling bitcoins.

But yes, here we should also remember that if bitcoin is accepted everywhere in the world, then it will be the end of the banking system.

[arwin100]

The answer is definitely and absolutely, no. Bitcoin can
Let's stop insisting war and competition between the two aforementioned organizations. They have their specific purposes. Both serve as an alternative option one way or another to the majority. Without the banks, economy will most likely suffer. Without the bitcoin community, people would lose platform/medium to generate income and/or to invest with.

To many people thinking that it can overcome something giant while we all know how strong the fiat system is for sure there will be no ending discussion about this but its easy to think why this overcoming a certain institution will never happen to bitcoins, maybe the global adoption and usage will spread but we will see only bitcoin as alternative since law makers will surely supports fiat(Central Banks) at any cost.

[DrBeer]

Perhaps the simplest and most not problematic way is to recognize the cryptocurrency as an asset, much like the stocks of companies, which are simply more accessible to the mass consumer and more convenient in transactions than classic stocks. But at the same time, the assets have a floating market value and can be sold for fiat money. The fight for the right to become a currency, or a means of payment, can, on the contrary, bring the time of the cryptoindustry if a tough confrontation arises between regulators, banks, financial institutions and the crypto market

[fauzan Ichsan]

The answer is definitely and absolutely, no. Bitcoin can
Let's stop insisting war and competition between the two aforementioned organizations. They have their specific purposes. Both serve as an alternative option one way or another to the majority. Without the banks, economy will most likely suffer. Without the bitcoin community, people would lose platform/medium to generate income and/or to invest with.

To many people thinking that it can overcome something giant while we all know how strong the fiat system is for sure there will be no ending discussion about this but its easy to think why this overcoming a certain institution will never happen to bitcoins, maybe the global adoption and usage will spread but we will see only bitcoin as alternative since law makers will surely supports fiat(Central Banks) at any cost.

I agree. It is very difficult to replace fiat money which seems to be fully supported by the government. Global adoption will really help bitcoin to gain strength and in the end the government can consider it as an alternative means of payment, I guess that's my highest hope.

[tanjiran]

I don't think Bitcoin will kill the banking system. Rather, Bitcoin helps you manage your wealth and allows you to transfer money without having a third party.

As every bitcoiner needs a bank account so that he can get his local currency by selling bitcoins.

But yes, here we should also remember that if bitcoin is accepted everywhere in the world, then it will be the end of the banking system.

however, the central bank has the full support of the central government, while bitcoin is the opposite.  bitcoin is indeed beneficial for those who like freedom, and it cannot be denied that bitcoin provides solutions to several problems that cannot be handled by the current financial system, it's just that bitcoin is controversial regarding the "freedom" it carries.  While the government is trying to anticipate bad things to put limits, so far I think it will be difficult for BTC to kill the bank, what for anyway?  so far btc still exist in its way

[Karartma1]

A bitcoin standard where individuals would reclaim their financial freedom can still be created. It takes a few small economies to start basing their new currency on it for a decentralized network of economies based on that to start popping up. That'd be my dream come true, where central banks cease to exist because they'd have nothing to do.

[Argoo]

Of course, neither Bitcoin nor any other cryptocurrency can lead to the destruction of central banks. The banking system is part of the state, takes part in the maintenance and regulation of economic processes in the country and is actually under the protection of the state. States will destroy anyone who encroaches on their banking system. Therefore, cryptocurrency has absolutely no chance of crowding out banks. Cryptocurrency can exist only along with the banking system and together with the national currencies of states.

[DarkIT]

This was an interesting topic and roam in the forum often.It may happen in two decades.Because the central bank had his strong base among the people.Even they are getting more interest for the loans,we still approach the bank for it.Once bitcoin made it strong base among the people and it may happen.But the process already started.

[bittick]

At the initial stage both the central banks and Bitcoin will co-exists. This means that fiat and bitcoin will be used side by side. When people began to use more bitcoin and crypto, then the fiat transaction will become less and the role of banks at that time will become limited. Slowly the banks will began to shutdown and eventually there will be no banks and no fiat currencies.

central bank not gonna shut down, that's why they also trying to create CBDC that is to compete with cryptocurrency that are decentralized, then maybe in the future cryptocurrency will act like more of digital store of value and stock while the money still controlled by bank through CBDC and I think thats the most realistic future I can see. Of course implementation of CBDC will take a long time as always with the bureaucracy of the government and maybe in the future traditional stocks will get tokenized as well allowing it for trading 24/7

[ven7net]

The fact is that while the existing financial system operates, no one and nothing threatens banks, not even Bitcoin. In order for banks to disappear, a new global financial system is needed, but since it does not exist yet, the banks will continue to work. However, the emergence of Bitcoin and other cryptocurrencies gave rise to thinking, are they not one of the elements of the future new global financial system? I believe that this is probably the case, and when the time comes for a new financial system, then Bitcoin will probably be able to occupy a niche of banks and become something more than just a top cryptocurrency.

[MCobian]

At the initial stage both the central banks and Bitcoin will co-exists. This means that fiat and bitcoin will be used side by side. When people began to use more bitcoin and crypto, then the fiat transaction will become less and the role of banks at that time will become limited. Slowly the banks will began to shutdown and eventually there will be no banks and no fiat currencies.

central bank not gonna shut down, that's why they also trying to create CBDC that is to compete with cryptocurrency that are decentralized, then maybe in the future cryptocurrency will act like more of digital store of value and stock while the money still controlled by bank through CBDC and I think thats the most realistic future I can see. Of course implementation of CBDC will take a long time as always with the bureaucracy of the government and maybe in the future traditional stocks will get tokenized as well allowing it for trading 24/7

The plan to create a CBDC is indeed clear evidence that the government is adapting to technology. where now many people do financial transactions
done digitally. I believe central banks will never die, because that is the only way the government can control the finances of its citizens. Because if
the government agrees to switch to using Bitcoin, it will be difficult for the government to control the finances of its residents. It is most likely that
Bitcoin will only be a payment alternative to fiat, so Bitcoin and fiat will co-exist.

[Kong Hey Pakboy]

Banks are too deep rooted in our society and government that if we try to remove it totally, the countries won't survive for long and any replacement is always going to be too late. Banks are like the zombie ant spores, they are the reason why the ants still move and if we completely remove it, the ant will finally die. So to answer your question: No, banks can't be killed or not worth to kill.

[mamahdedeh]

Banks are too deep rooted in our society and government that if we try to remove it totally, the countries won't survive for long and any replacement is always going to be too late. Banks are like the zombie ant spores, they are the reason why the ants still move and if we completely remove it, the ant will finally die. So to answer your question: No, banks can't be killed or not worth to kill.

banks in government control, and sustaining a country's economy, can crypto easily overtake them? I don't think it's that easy, of course the government doesn't want to lose control, let alone let go of the central bank before finding something that can benefit the government