Can blockchain replace the traditional banking system?

[Liamttw]

• Blockchain is decentralized, it will not be controlled by anyone, and it can effectively prevent problems such as data leakage or database intrusion in the banking system.
• Blockchain cross-border transactions can avoid many processes and links of bank transactions, and the transaction fees are low and fast transactions.
• The application of blockchain technology can provide traditional banks with a lower cost, efficient and safe transaction method.

The traditional banking system will not be replaced by blockchain, but it may incorporate blockchain technology. Banks in blockchain technology can provide users with transaction services anytime.

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[fulcare]

The term blockchain here seems to be so one-dimensional. Blockchain alone, well probably yes if we have set up a whole reliable smart contract environment, it might be possible one day. One problem will be dispute resolution though. I don't know if you can solve any problem that can occur in financial relationships through mathematical equations. You would have to frequently tweak the incentive structure such that one day you really have a system that is sufficiently flexible to also be able to deal with yet unforeseen events. That will be hard to achieve, but maybe not impossible.

[Republikcoin.com]

Blockchain technology can be implemented in the banking system. In fact, it is the hope of all customers to be able to get a fresh banking system and also be more fair in the distribution of data.
However, here the bank has other considerations before deciding to implement Blockchain in the system. They risked their power of control by taking considerable risks. The use of blockchain is certainly safer from the customer's point of view, but from the company's point of view it will limit the movement of companies which results in reduced their income.

[macson]

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Central bank won’t allow this thing because banks is an established business for a decades now but I believe those banks can adopt blockchain technology to help improve their system and I know some banks already do this one so there’s no need for a blockchain to replace the traditional banking system. Fiat money will still be here despite of growing cryptocurrency, we can’t just live without it.

adopting blockchain technology means completely overhauling the entire business.  it will definitely go that way but it will take a long time until we see banks adopting blockchain.  adopting blockchain technology does not have to replace fiat, fiat and blockchain can still stand the same.

[ven7net]

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

Blockchain technology itself is the best system for storing and transmitting data at the moment, but you should understand that if, for example, a banking system wants to use a blockchain, then it will develop its own blockchain. This is important, since some people think that banks will use, for example, the blockchain bitcoin or ethereum, but this is not the case. It is possible that the existing algorithms of other blockchains will be used in the banking blockchain, but in the end it will be its own blockchain and it will also be controlled by the banking system. This will probably also apply to the launch of their cryptocurrencies.

[lenovop-70]

Replace traditional banking is yes, but as the beginning maybe we should say cooperate with traditional banking system first, as we know theres traditional banking sytem who has adopt blockchain on their operational, this is good start to merged fully to blockchain system, i think people knowing that traditional banking system is not transparant and has so many crack to scam us, so in the near future, we will see they are totally move to blockchain system.

[breathlessz]

snip

Central bank won’t allow this thing because banks is an established business for a decades now but I believe those banks can adopt blockchain technology to help improve their system and I know some banks already do this one so there’s no need for a blockchain to replace the traditional banking system. Fiat money will still be here despite of growing cryptocurrency, we can’t just live without it.

adopting blockchain technology means completely overhauling the entire business.  it will definitely go that way but it will take a long time until we see banks adopting blockchain.  adopting blockchain technology does not have to replace fiat, fiat and blockchain can still stand the same.

maybe later it will be possible for banks to use blockchain, because of its advantages. but to do that, of course, the government goes through a lot of considerations, especially to change the current system, I don't think it's that easy to decide

[ROSERTY]

The opportunity for banks to adopt blockchain technology is greater than the opportunity for replacement. Converged encryption continues to provide services for people and provide ordinary people with more control. The government will do its best to try to combat any skipping of using cryptocurrency services. In many countries, the government is considering using a digital version of the local currency, which will use blockchain technology.

[Dr.Osh]

well, the issuance of various regulations regarding cryptocurrencies, I think it's because the use of banks is disturbed by it. Moreover, blockchain is currently one of the newest, and even profitable, payment methods. however, it could replace the current banking system. I also heard that some countries are developing their own cryptocurrencies. Well, it can happen, but it seems like a lot of regulations will hinder that.

[Obito]

If we are talking about the system, probably we can use blockchain to replace the current banking system because I think using blockchain will help with the transparency in the banking industry since we can use it to trace people's dealings if we suspect them of foul play.

[Caldear]

Blockchain will not replace banks. However, the emergence of new technologies such as blockchain technology will force the banking industry to reform.
Blockchain is a distributed shared ledger and database. It has the characteristics of decentralization, non-tampering, openness and transparency, and can solve the problem of trust in transfers.
Inter-bank transfers between banks need to pay high handling fees, and the transfer amount will be limited by the banking system. Blockchain is a point-to-point transmission method that does not require a third party, which can save costs and improve transfer efficiency.

[eaLiTy]

If we are talking about the system, probably we can use blockchain to replace the current banking system because I think using blockchain will help with the transparency in the banking industry since we can use it to trace people's dealings if we suspect them of foul play.

Many countries are planning to launch their own central bank digital currency and we will see many in the next 5 years but the problem is that whether they will gain the momentum they are expecting, yes having every transaction in a blockchain will create a transparent economy but how many will be willing to move all their transactions like that, may be it might take another decade to see those changes.

[Brus123]

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?

I strongly believe in Blockchains and different innovations. I do hope that I will move to the Internet one day. I will not depend on anything physical then. I am going to create a digital identity for myself. And of course, in that world I will not need fiat money and banks, only digital currencies, that can't be regulated by anybody. Moreover, there are currencies that don’t change their value every day, so we can use them for payments easily.

[Wong Gendheng]

If we are talking about the system, probably we can use blockchain to replace the current banking system because I think using blockchain will help with the transparency in the banking industry since we can use it to trace people's dealings if we suspect them of foul play.

This is a good idea, currently account holder data is very confidential so there is a lot of financial crime and corruption, the presence of blockchain in banks is certainly an effective public control to reduce financial crime.

[Silberman]

There is something you need to know my friend.
Traditional financial institutions are the most corrupt set of organizations to ever exist and do you want to know why, tell them to employ blockchain for transparency, they will ignore and wouldn't want anything that will be public, they want to do everything at their way.
Banks would actually do and perform better if and if they accept blockchain and it fundamentals but I still be believe government would be limited on how they explore most of this thing as they dislike things they can't control.

This is true, banks are known to allow all kind of criminal organizations to use their services for a fee and they keep doing this because when the government realizes this instead of giving a very strong sanction to the people behind those banks what they do is that they give them a fine and since the fine is lower than what they charge to those criminal organizations then there is no incentive for banks to change their behavior, so it is likely that the blockchain technology is going to be used against us but not against clients that could be affected by it.

[ilovealtcoins]

The function of a bank is to coordinate cash flow, so the bank is always controlled by the state. Blockchain is a good technology and it can help the banking industry to help with better regulation. Replacing the bank is such a lofty idea and it's not allowed because governments won't let that happen.

[sapnu]

When it comes to blockchain replacing the traditional banking system, I don't think we should seek after it cause it may work well if the two would collaborate on making things effective for the investors. Obviously, the traditional banking system is under the government's property which means they have control towards it as well as the ability to shut it down and that may happen if blockchain technology will get involved in it cause most of the people in the government is against it. Nevertheless, we should seek for improvement towards both always.

[Argoo]

Banks already partially use the blockchain and, in particular, the ripple network. However, their use of the blockchain does not mean that something will change significantly in this system, including towards its decentralization. Only the efficiency of banks' work on the old traditional principles will increase. So nothing significant in the banking system will change.

[fulcare]

Banks already partially use the blockchain and, in particular, the ripple network. However, their use of the blockchain does not mean that something will change significantly in this system, including towards its decentralization. Only the efficiency of banks' work on the old traditional principles will increase. So nothing significant in the banking system will change.

I think this is a question about whether or not blockchain can also fulfill many of the service functions that banks offer these days. Custody, financial management, and whatever else banks sell to people. Loans of course of different terms (short, medium, long-term).

With DeFi growing strong recently I think we will still need some time to figure out what blockchain can actually do for people compared to banks, but the thing is that development in blockchain is going at a high pace and won't stop while banks don't really know what to do against that. Now they start to slowly embracing it just to stay in the game for as long as possible.

[Viscore]

Blockchain can replace traditional banking system surely and it must replace the old system also. Because Blockchain technology is a much better system than the one that we have been using for many years. It is much safer. It is harder to hack. And I believe that this will really happen also and Blockchain will start being used like this.

For now, i don't see any chances that blockchain will come to replace traditional banking system. Yes, its more reliable compared with the old one but what i am seeing is that blockchain can be integrated into the traditional one which will help to cope up the fast changing technology we have at the moment.

People will definitely choose what will be more convenient and useful for them but this is a long way process before realization. Who knows? Maybe in the future blockchain will replace the traditional one but for now, the chance is very slim.