Is it possible for cryptocurrency to replace traditional banking?

[Bitcoin Maxi]

As a newbie sometimes I keep wondering if it's going to be possible for cryptocurrenciies to replace traditional banking either now or in the future.
As i keep reading, making researches to get myself acquainted to the forum, I still ponder on it because of the decentralized nature of cryptocurrency. I mean cryptocurrency  transactions are not controlled by authority unlike in the traditional banks, users are allowed to transact directly with each other without involvement of a third-party, it is  autonomous,allowing for borderless transactions, etc . Looking at this few features of cryptocurrency  and the world's advancement in technology:  IS IT POSSIBLE FOR CYPTOCURRENCY TO REPLACE TRADITIONAL BANKING?
What's your take on this ?

[nakamura12]

I think it's impossible for that to happen. The reason is that government can't have full control so it's most likely they prefer fiat since they can control it. They won't be able to know who the owner of the wallet if they still made it decentralized but if it's not then the customer's privacy is no longer good since there's a wallet or an account that Is linked to his/her identity which many people doesn't want. One of the reason why they want to use Bitcoin is that it doesn't link their identity to the wallet or even the transaction.

[Ambatman]

 Will assume you talking about Bitcoin since you mentioned decentralized.
I don't think it would because of it's decentralized nature.
The government needs money they can control so they can control manage the economy.
This is one of the reasons gold standard was stopped
Because they couldn't print more when they want unlike Fiat.
So as long as government exists. Bitcoin can at best be an alternative.  

[OcTradism]

IS IT POSSIBLE FOR CYPTOCURRENCY TO REPLACE TRADITIONAL BANKING?

Cryptocurrencies can not replace traditional banking systems because governments, central banks and bank system will not allow it to happen. It is a more realistic to say cryptocurrencies will be accepted more and will be a more favorite alternative solutions for people but both cryptocurrencies and bank systems will exist together in the future.

Central banks and bank systems will migrate from traditional systems to CBDCs and blockchain-based systems in the future, while it won't kill cryptocurrencies.
CBDC adoption and development tracker.
https://cbdctracker.org/

[Charles-Tim]

It is better you mention the names of the cryptocurrencies and not generalize them because most coins and tokens are like ponzi schemes.

Let us use bitcoin as an example which is the main store of value among them. Bitcoin is a store of value, fiat are depreciating assets that their prices are less volatile but getting devalued by government over a long period of time.

People like what the government make and fiat is one of them.

Bitcoin is a substitute and not a replacement. It has different purpose it is created. Bitcoin does not have the same purpose with fiat.

[Cookdata]

Is it possible? Yes

Will traditional finance allows it? No.

If you watch CNBC channel, interviews and how most of this so called traditional expert talk about Bitcoin, you don't need to be told they don't like Bitcoin. They demarket it in all ways but guess what, we don't have time to demarket their product, the demand of Bitcoin comes as people understand how fail traditional finance has failed.

[Bobrox]

Actually not yet, less possible for cryptocurrency to replace traditional banking due all banking user not really understand well about cryptocurrency and have several percent people not interested to use bitcoin as payment transaction. Bank have been common transaction for all user around the world and government not fully legalizing bitcoin become payment transaction, so traditional banking keep existing for longer time although in the future bitcoin and cryptocurrency have been popular.
Have several countries against with cryptocurrency and make it difficult for crypto become legal transaction or possibility to replace traditional banking, many old people in my environment get difficult to use internet and I think hard for them to understand well about cryptocurrency transaction.

[Japinat]

This kind of topic has been discussed already in the forum numerous times. But anyway, I will still repeat my answer to your question.

The government won't allow that because bitcoin is decentralized in nature, which means they cannot take full control on bitcoin unlike fiat which is controllable by them 100%. Furthermore, the banks are being back up by the government itself so there is no way that they will allow bitcoin to replace the position of fiat or traditional banks. Bitcoin may only be accepted as an alternative currency, but it will never be an official currency like fiat.

[un_rank]

Traditional banking systems are necessary, maybe not ideal, but there are a number of demands that a decentralized system cannot replace. For Bitcoin to attempt to do this, it has to first be channeled through a centralized system to allow people utilize the number of financial tools they assess with traditional banks. This makes it detrimental to Bitcoin.

People should also not be forced to use Bitcoin. There is now that choice for people who do not want to get involved in decentralized systems to use the one they are used to.

There are lots of talk about the Government not allowing it, but neither should it be desired by the Bitcoin community.

- Jay -

[Creeper0]

This is not happening in the next few years or even a few hundred years. It may happen, but it will take a long time, it is not possible to say anything now. I think that since the banking system was not there from the beginning of the world, the banking system originated 4000-5000 years ago, so since it has been introduced, its end will also happen. But it is not possible to say after how many years it will happen and what will replace it. But I do not think that volatile coins like crypto currency can ever replace the banking system!!

[Mrbluntzy]

This question has been asked many times, the efficiency in blockchain transaction, its flexibility and the other good characteristics it has could make you think that crypto can replace traditional bank but it won't happen and the reason is because the government will not allow crypto replace traditional banks because of privacy reasons, the government doesn't like to be transparent as much as they want citizens to be transparent, therefore won't allow crypto replace bank since transactions can be tracks on the blockchain network and scammers or anyone can know the movement of money in every institution, they can know the total amount they are holding in their wallet if the wallet is let out to public. Secondly, the government also have their different corrupt practices that can be detected onces transaction is done on their wallet, so, the government won't allow it work.

[Su-asa]

As a newbie sometimes I keep wondering if it's going to be possible for cryptocurrenciies to replace traditional banking either now or in the future.
As i keep reading, making researches to get myself acquainted to the forum, I still ponder on it because of the decentralized nature of cryptocurrency. I mean cryptocurrency  transactions are not controlled by authority unlike in the traditional banks, users are allowed to transact directly with each other without involvement of a third-party, it is  autonomous,allowing for borderless transactions, etc . Looking at this few features of cryptocurrency  and the world's advancement in technology:  IS IT POSSIBLE FOR CYPTOCURRENCY TO REPLACE TRADITIONAL BANKING?
What's your take on this ?

It is not possible for crypto currency to replace the fiat currency or the traditional banking system because not everyone trust crypto currency like the way they trust the traditional banking system. Some days back I heard someone who was saying the reason why he do not like crypto currency is because if a transaction is made to a wrong address it is not possible to recover it but they can recover money that's sent to a wrong Bank account. So I honestly believe that's true because as someone who's into the crypto space you must be smart so that you don't send money to a wrong address that you do not know. Meanwhile everyone around us today is not smart enough to understand this, just like we know, that some people who use traditional banks sometimes forget their pin and other important stuff, so they go to the bank to recover them but when it comes to crypto currency, you don't get access to your wallet if you lose your seed phrase.

[uchegod-21]

As a newbie sometimes I keep wondering if it's going to be possible for cryptocurrenciies to replace traditional banking either now or in the future.
As i keep reading, making researches to get myself acquainted to the forum, I still ponder on it because of the decentralized nature of cryptocurrency. I mean cryptocurrency  transactions are not controlled by authority unlike in the traditional banks, users are allowed to transact directly with each other without involvement of a third-party, it is  autonomous,allowing for borderless transactions, etc . Looking at this few features of cryptocurrency  and the world's advancement in technology:  IS IT POSSIBLE FOR CYPTOCURRENCY TO REPLACE TRADITIONAL BANKING?
What's your take on this ?

The traditional banks don't just issue out fiat for daily use, they engage in other services like lending, safekeeping of valuables among other services I may not be able to think of. People still need all of these services rendered by the banks. What this means is that Bitcoin will not be replacing the traditional banks.

Again, don't even think that everyone loves Bitcoin just like you and I. Some people don't even give a fuck about Bitcoin, they'll keep patronising the traditional banks even if Bitcoin is legalised all over the world.

As for the government's, they won't want to have a currency they cannot control. So, they will never let bitcoin replace fiat, at most both currencies will exist side by side.

Bitcoin will only reshape the banking system, but for replacement, it's never going to happen.

[cryptomaniac_xxx]

As a newbie sometimes I keep wondering if it's going to be possible for cryptocurrenciies to replace traditional banking either now or in the future.
As i keep reading, making researches to get myself acquainted to the forum, I still ponder on it because of the decentralized nature of cryptocurrency. I mean cryptocurrency  transactions are not controlled by authority unlike in the traditional banks, users are allowed to transact directly with each other without involvement of a third-party, it is  autonomous,allowing for borderless transactions, etc . Looking at this few features of cryptocurrency  and the world's advancement in technology:  IS IT POSSIBLE FOR CYPTOCURRENCY TO REPLACE TRADITIONAL BANKING?
What's your take on this ?

As what others say, as much as we want crypto to become mainstream, I don't think that it will be enough to replace the traditional banking system. We all know that it has existed for many years now and it's one of the pillars of government and if we completely eliminated it, then something might go wrong.

So for me, why not just take the best of both worlds?

Take advantage of crypto and then uses the old but traditional way? And we have seen the banking system has also take interest of crypto or at least the technology behind it. It's a win-win situation for us.

[osasshem]

I don't think it will be possible for crypto currency to replace traditional banking system, instead they will work hand in hand, cause the government will always want to have something they are in total control of, and that doesn't work in Bitcoin. These two are parallel lines that cannot meet, but will continue to move, without one replacing the other. The banking system will always be needed as there will always be a physical utilisation of native fiat and a store house to keep them, of which can be easily accessed at times needed.

[Asiska02]

IS IT POSSIBLE FOR CYPTOCURRENCY TO REPLACE TRADITIONAL BANKING?
What's your take on this ?

One questions should come to your mind every time this thought cross your head, is it possible for the government to allow decentralization to prevail fully over centralization and let it be? If there are still question marks to this question and you doubt it, then such day may never come.

The cryptocurrency market and the invention of bitcoin was to serve as alternative to the traditional banking system and not to replace it, Satoshi never invested it for that purpose. But because of the disadvantages of traditional banks over bitcoin, people now feel it makes more sense for it to be replaced by it without thinking about the consequences of how to go about it. If we are still under government rule, it may never happen even if the adoption continues to rise and is made a legal tender.

[EluguHcman]

As a newbie sometimes I keep wondering if it's going to be possible for cryptocurrenciies to replace traditional banking either now or in the future.

Crypto can not take the place of the traditional monetary system due to it regulatory resistance that the government can not control it except for when a user is navigating through the regulatory exchange platforms before they can have a say. And you know that the government will only be function able where they have power of decision making.

Even while using the P2P, be aware that crypto user will still be in need to exchange their crypto assets to the traditional currencies so that they can spend it due to less number of crypto adoptors.

The government will also not give the DeFi such room to take over the traditional system because they would not want to be limited to the exercise of power when non that money truly rules the world.

Well, for the benefit of doubt, the future of whether crypto will replace the traditional banking system may lie in the fate of the future generations but it is a totally hopeless in this current generation.

[The Cryptovator]

As a newbie sometimes I keep wondering if it's going to be possible for cryptocurrenciies to replace traditional banking either now or in the future.

Simple answer from me: no. If we want to discuss it in detail, then the post will be quite long. Traditional banking and crypto have different purposes; we need fiat for daily life. Since fiat will exist, it means traditional banking will exist too.

As i keep reading, making researches to get myself acquainted to the forum, I still ponder on it because of the decentralized nature of cryptocurrency. I mean cryptocurrency  transactions are not controlled by authority unlike in the traditional banks, users are allowed to transact directly with each other without involvement of a third-party, it is  autonomous,allowing for borderless transactions, etc . Looking at this few features of cryptocurrency  and the world's advancement in technology:  IS IT POSSIBLE FOR CYPTOCURRENCY TO REPLACE TRADITIONAL BANKING?
What's your take on this ?

You already answered yourself. Since the government can't control cryptocurrency, why would the government want to replace crypto with the traditional banking system? To keep the economy stable, it's mandatory to have a native currency for each country. So ultimately the traditional banking system will exist. Even those that have made Bitcoin legal tender, like El Salvador, still have traditional banking systems. I think even in the future crypto can't replace the traditional banking system anyway.

[Finestream]

As long as the government creates a strong back up for traditional banks, crypto or bitcoin will not gain any chance to get there. Banks will stay for good, despite how cashless transactions have been relatively high. Bitcoin will remain to be a payment option, since its always fiat that will be favored by the majority.

Traditional banks will stay in the market, no matter how we find the value of fiat keeps depreciating. The government will always secure its spot, so that any form of cryptocurrency most particularly bitcoin will never got the chance to replace it.

[palle11]

IS IT POSSIBLE FOR CYPTOCURRENCY TO REPLACE TRADITIONAL BANKING?
What's your take on this ?

I'm thinking how this will be possible because the making of bitcoin as decentralised digital currency will not allow it to be distributed using a third party. Even if it is distributed as regulated by government, some people will still have their coins with them and that will make duplication a challenge. Bitcoin that I know was not created for banks to be issuing it. Or how will they do that when people still have it while it will be in control of banks/government. Government can not control or regulate bitcoin because it is decentralised.