Can blockchain replace the traditional banking system?

[jinneas]

The emergence of blockchain technology has changed the development of global digital payment system business. With the impact of new cryptocurrency projects on banks and other financial institutions, many companies are forced to start making changes to their systems.
In the traditional financial system, the regulator will monitor your operations in order to maintain the integrity of the system, and the process will incur large costs and may be full of fraud. But the blockchain system gains integrity by incentivizing the best interests of the system and allowing anyone to verify it.
Blockchain and cryptocurrency are integrated into all walks of life to solve traditional solutions with safer and more efficient technologies. Although it is well known that it cannot replace cash, it may have the opportunity to replace or cooperate with traditional banking systems. Blockchain as an important innovation field of financial technology, can it replace the traditional banking system in the future?

https://www.ibtimes.com/can-these-blockchain-solutions-replace-traditional-banking-system-3259844

[valentine wheeler]

The emergence of blockchain technology has changed the development of global digital payment system business. With the impact of new cryptocurrency projects on banks and other financial institutions, many companies are forced to start making changes to their systems.
In the traditional financial system, the regulator will monitor your operations in order to maintain the integrity of the system, and the process will incur large costs and may be full of fraud. But the blockchain system gains integrity by incentivizing the best interests of the system and allowing anyone to verify it.
Blockchain and cryptocurrency are integrated into all walks of life to solve traditional solutions with safer and more efficient technologies. Although it is well known that it cannot replace cash, it may have the opportunity to replace or cooperate with traditional banking systems. Blockchain as an important innovation field of financial technology, can it replace the traditional banking system in the future?

The operating idea of ​​the blockchain system is to replace traditional solutions with payment infrastructure with a higher level of security and efficiency. At present, major mainstream practitioners seem to have to face "either adapt or die."

The overall development trend can be said from four aspects:

• Decentralized features, no need to rely on a third party, transaction Sudujia is fast
• As a representative of the blockchain, Bitcoin has a higher safety factor and more and more application scenarios.
• Cross-border transactions can effectively evade the SWIFT settlement system. As a sovereign country, it can avoid US economic sanctions and hegemony threats
• The key factor is lower transaction costs, and future transactions will be faster without waiting.

I am very confident that blockchain and Bitcoin will replace the existing banking system in the future. The unfriendly policies of many countries also fully demonstrate that their interests are threatened, but the development of the times is unstoppable.

[so98nn]

Blockchain as whole decade old technology and it's based on public ledger. If we forget few instances in the past then blockchain truly complies with the "Data Integrity" structure and thus making it reliable platform to run the operations of traditional banking system. Even giants like MasterCard is already into this and plotting big plans for the adoption of Blockchain into its network.
Article: MasterCard and it's blockchain project This one is really deep article and everyone must read if they are enthusiastic about the MasterCard.

However, then we have things like Government, Political power, Big Bankers and those 1% who will never wish to give away the power to control monetary system at all. Lets remember one thing, current monetary system is so deep rooted that it can never be replaced by such new tech like blockchain.

"They may adopt it for certain usage, but they won't let dilute their power over it!"

Central banks are currently the dominant structure nations use to manage their economies. They have monopoly power and are not going to give up that power without a fight. While Bitcoin and other digital currencies have generated significant interest, their adoption rates are minuscule and government support for them is virtually nonexistent.

Amazing article related to your question - Article: Can Bitcoin Kill Central Banks?

[Charles-Tim]

Decentralized features, no need to rely on a third party, transaction Sudujia is fast

Not only decentralized currencies are making use of blockchain technology again. Although, it started from Bitcoin, while altcoins also make use of blockchain, now CBDC are also now making use of blockchain, but CBDC are completely centralized currencies. If you are relating it to decentralized currencies, just know that both centralized and decentralized currencies are existing for good reasons, decentralized currencies like Bitcoin as an alternative is the best, not a replacement but as alternatives.

[capcaypro]

By design, blockchains are resistant to data modification. Blockchain is a distributed ledger, Blockchain was designed from the ground up to be secure and is an example of a distributed computing system with a high Byzantine Fault Tolerance (BFT). and if you look at it from here, actually the concept of blockchain is almost the same, just more modernization because you see civilizations that are getting more and more advanced.
Besides that, the feature that uses this intelligent centralized system I think is very beneficial for blogchem to continue to grow because I think this is very important apart from avoiding third parties with a decentralized system so transactions are faster.
but I prefer to use this as an alternative and not replace the existing system because now the system that implements this blockchain is not only Bitcoin and outline but there are others who use block chains as their means, for example, cdbc which is now already using blockchain whereas on the other hand cdbc is a currency with a fully centralized system.

[XUNing]

I don't think that blockchain technology will completely wipe out banks. Banks will find a way to adapt to it, or at least create other aspects to continue to exist. Blockchain and traditional banking will coexist, and everything will become a fact of survival of the fittest at some point.
Traditional banks have cash, and blockchain is cryptocurrency. If they want to replace these banks, then this also means always using cryptocurrency instead of cash, which is almost impossible.

[Kong Hey Pakboy]

I don't think that blockchain technology will completely wipe out banks. Banks will find a way to adapt to it, or at least create other aspects to continue to exist. Blockchain and traditional banking will coexist, and everything will become a fact of survival of the fittest at some point.
Traditional banks have cash, and blockchain is cryptocurrency. If they want to replace these banks, then this also means always using cryptocurrency instead of cash, which is almost impossible.

Not wipeout but replace although, I don't think that I am going to say that it can replace because it works in counter with banks, blockchain eliminates the middle man and banks in a sense are a middle man to any kind of transaction, so I don't think that they will probably allow blockchain to be the dominant one.

[Haunebu]

There are many threads available in this forum that discuss this particular topic op.

Example: https://bitcointalk.org/index.php?topic=5026105.0

Blockchain technology is being used for certain applications by various countries in different ways. Basically, expecting blockchain to replace the traditional banking system is silly. If it was actually possible, don't you think it would have happened already?

[decodx]

I don't think that blockchain technology will completely wipe out banks. Banks will find a way to adapt to it, or at least create other aspects to continue to exist. Blockchain and traditional banking will coexist, and everything will become a fact of survival of the fittest at some point.
Traditional banks have cash, and blockchain is cryptocurrency. If they want to replace these banks, then this also means always using cryptocurrency instead of cash, which is almost impossible.

Not wipeout but replace although, I don't think that I am going to say that it can replace because it works in counter with banks, blockchain eliminates the middle man and banks in a sense are a middle man to any kind of transaction, so I don't think that they will probably allow blockchain to be the dominant one.

Not quite yet, but it will eventually.
Whether blockchain technology will replace traditional financial services or not is a matter of political will and corporate interest. No one can guarantee that the blockchain economy will replace the existing banking system, but one thing is sure – blockchain technology will bring a new revolution to the way financial services are being used in the future.

[kryptqnick]

In Ukraine, there's a plan to move all sorts of governmental registers on blockchain, as well as adopt cryptos and introduce a centralized local fiat-based cryptos in 3 years. However, the intention is not to replace the banking system with it, but to supplement it with blockchain. As for replacement, I think it's possible only hypothetically, but is highly unlikely. Scalability is a huge issue, so we either need it solved or we need lots of cryptos functioning in harmony to get the load of transactions reasonably distributed. It's all hard to pull off, not to mention the backlash by the banking industry.

[Shenzou]

I feel that it is hard to see government actually replacing their finical system with blockchain, that is due to the fact that the blockchain network has to be decentralized and uncontrollable by any part, which banks and the current finical system is against it, because they need to be in control to mange the transaction that are happening, which means they need to be able to stop a transaction if they want to, that is why currently banks exist.

[Ucy]

In the traditional financial system, the regulator will monitor your operations in order to maintain the integrity of the system, and the process will incur large costs and may be full of fraud. But the blockchain system gains integrity by incentivizing the best interests of the system and allowing anyone to verify it.

And that will depend on how transparent, immutable, decentralized the Banks Blockchain would be. If you take away some of the most important features like transparency, immutablity, decentralization, you would be attracting stronger regulation from central authority/government. The best way to keep them far away is to have no reason to be regulated by them.

[Kittygalore]

In Ukraine, there's a plan to move all sorts of governmental registers on blockchain, as well as adopt cryptos and introduce a centralized local fiat-based cryptos in 3 years. However, the intention is not to replace the banking system with it, but to supplement it with blockchain. As for replacement, I think it's possible only hypothetically, but is highly unlikely. Scalability is a huge issue, so we either need it solved or we need lots of cryptos functioning in harmony to get the load of transactions reasonably distributed. It's all hard to pull off, not to mention the backlash by the banking industry.

That's actually pretty good because with blockchain having the ledger feature, transparency in the government dealings is going to be useful. I don't know much how Ukraine does but if they can probably stop the fight against Russia, they might have the money to expand and solve the scalability issue.

[dkbit98]

Current banking system is very slow, centralized, controlled by few elite members, and it spends a lot more energy than all Bitcoin mining, but I don't see anybody from climate change propaganda bs complaining about it.
They won't allow replacing of that old dinosaur banking system until they create their own total surveillance tracking nightmare, that is why it's very important that more countries accept Bitcoin, that can't be controlled and printed to infinity like fiat or future CBDC currencies.
Using second layer solutions and sidechains with Bitcoin we can full replace corrupt banking system, but they won't go without a fight.

[Jawhead999]

Blockchain has 2 categories, public blockchain and private blockchain.

Public blockchain is decentralized since anyone can view, read and participate on the network. While the private blockchain is centralized since the blockchain is only permit few people to able view, read and participate on the network. Of course Bank would use the private blockchain if they want to replace their old centralized ledger especially when they want to launch their own Digital currency. Blockchain is more fast, efficient, flexible, and cheaper, it just a matter of the technical skills/coding, so there's more advantages of using Blockhain.

[Renampun]

The emergence of blockchain technology has changed the development of global digital payment system business. With the impact of new cryptocurrency projects on banks and other financial institutions, many companies are forced to start making changes to their systems.
In the traditional financial system, the regulator will monitor your operations in order to maintain the integrity of the system, and the process will incur large costs and may be full of fraud. But the blockchain system gains integrity by incentivizing the best interests of the system and allowing anyone to verify it.
Blockchain and cryptocurrency are integrated into all walks of life to solve traditional solutions with safer and more efficient technologies. Although it is well known that it cannot replace cash, it may have the opportunity to replace or cooperate with traditional banking systems. Blockchain as an important innovation field of financial technology, can it replace the traditional banking system in the future?

https://www.ibtimes.com/can-these-blockchain-solutions-replace-traditional-banking-system-3259844

Haven't you seen a topic like this, I see it's been discussed many times...

it is most likely that blockchain technology will shift the technology of conventional banking systems. Blockchain technology is the technology the world needs to make all transactions more transparent and open. the current banking system does not show transparency, that means we have to start adopting blockchain technology.

[Zilon]

Blockchain isn't just limited to solving the trust issues revolving around traditional banking system. It is gradually gaining massive adoption in many other sectors of the world which involving transactions such as funding a gambling or trading account and despite it's global adoption it can't still replace the conventional banking system but could be used as an alternative in some cases even if not now maybe in the near future.

[Silberman]

The emergence of blockchain technology has changed the development of global digital payment system business. With the impact of new cryptocurrency projects on banks and other financial institutions, many companies are forced to start making changes to their systems.
In the traditional financial system, the regulator will monitor your operations in order to maintain the integrity of the system, and the process will incur large costs and may be full of fraud. But the blockchain system gains integrity by incentivizing the best interests of the system and allowing anyone to verify it.
Blockchain and cryptocurrency are integrated into all walks of life to solve traditional solutions with safer and more efficient technologies. Although it is well known that it cannot replace cash, it may have the opportunity to replace or cooperate with traditional banking systems. Blockchain as an important innovation field of financial technology, can it replace the traditional banking system in the future?

https://www.ibtimes.com/can-these-blockchain-solutions-replace-traditional-banking-system-3259844

The blockchain is going to be adopted by banks all over the world willingly so I do not think we are talking about replacing here but upgrading their current technology, however this is useless, they will be on control of those blockchains and they will be able to do whatever they want with it so this does not help us at all, we need bitcoin to become big and strong enough to become a competitor against those banks and even then I do not expect that bitcoin will replace the banks, it will just provide an alternative for those that want to avoid the banks on their daily lives.

[terrorJR]

Not quite yet, but it will eventually.
Whether blockchain technology will replace traditional financial services or not is a matter of political will and corporate interest. No one can guarantee that the blockchain economy will replace the existing banking system, but one thing is sure – blockchain technology will bring a new revolution to the way financial services are being used in the future.

talking about politics and government if we look at that view it will make sense when the government does not implement blockchain as a substitute for the traditional banking system, this is not without reason because we all know that the blockchain system is very difficult to control and automatic if they replace it with this they will not be able to control the finances that operate on the blockchain so that will make this a blunder and will not be profitable for them. because with the functioning of the traditional banking system, the government's control of existing finances can be monopolized there because we know that traditional banking is held by the government.

[Hydrogen]

I think bitcoin definitely changed the way people think about money. Its such a radical departure from conventional finance and banking norms. I'm surprised conspiracy theorists haven't put forward a theory of Satoshi Nakamoto being an alien from another planet. Cryptocurrencies have succeeded in ways, in building a better mousetrap. One observation that can be made about blockchain is, Satoshi Nakamoto was only a single person with limited resources and time. A team of talented individuals with funding, should in theory, be able to expand and improve on Satoshi's original venture. It is possible that had Satoshi continued to develop cryptocurrencies, he would have further expanded and improved upon its list of features and design principles.

Would prefer to focus on some attempt at future progress in finance/remittances, rather than focus on blockchain vs banks. There is still a lot of room for improvement to be made. Even banks are benefiting from and using blockchain based technology. Rather than blockchain replacing banks, they can simply adopt the technology and use it.