Will banks become obsolete in the crypto future?

[colinistheman]

✔ Will banks slowly lose their power?
✔ Or will they evolve and stay essential in the future?

Traditional banks are old school. People now prefer to use a crypto or microfinance bank that supports internet banking 24/7. No one wants to visit the traditional bank anymore. Gradually, they are becoming a thing of the past, unless they evolve. But the only way to evolve is if they include digital technology like blockchain tech into their system of operation. Although I heard some banks now accept crypto payments.

Is traditional banking obsolete? Have you seen any bank in your country or any bank in the world closing down because of the development of cryptocurrencies?
Nowadays, many individuals and users tend to switch to online banking or use crypto. But did you know that thousands of businesses and entrepreneurs still need to go to traditional banks because there is nowhere they can borrow money to grow their businesses? and they are the key factors driving the growth of the national economy, not you or me, and bitcoin speculators. So just because many crypto investors are moving away from traditional banks doesn't mean they are becoming obsolete and disappearing.

[fikrett]

Is traditional banking obsolete? Have you seen any bank in your country or any bank in the world closing down because of the development of cryptocurrencies?
Nowadays, many individuals and individual users tend to switch to online banking. But did you know that thousands of businesses and entrepreneurs still need to go to traditional banks because there is nowhere they can borrow money to grow their businesses? and they are the key factors driving the growth of the national economy, not you or me, and bitcoin speculators. So just because many crypto investors are moving away from traditional banks doesn't mean they are becoming obsolete and disappearing.

Regulations didn't come this far as of now, that's totally true and valid.

Businnesses don't borrow funds from exchanges and so on - we are only a starting block in that regard, relatively speaking, so I fully agree

[Maus0728]

I have been in this forum for so long than I can admit and to be honest, this question has been plaguing the forum ever since, people are still asking the same question even if there is a variance to it, it all boils down to the same question and in my opinion, I think that financial institutions will be here to stay, there will be no replacement or anything revolutionary happening anytime soon and there is definitely nothing new in the cryptocurrency market that will replace our reliance on these financial institutions.

There is also the fact that financial institutions are evolving, they are actively trying to integrate cryptocurrency into their system and some might say that these financial institutions are working on old technology, it cannot be easily dismissed that people in that institutions are smart enough to realize that instead of fighting crypto, why not integrate and evolve into something that would prolong their hold on the society?

Banks in a sense is already an obsolete system because crypto is here but the fact that there are purists out there that cannot accept the cryptocurrency future and bank obsolescence and those purists are influential and have the disposal to manipulate the market and the perception of the masses towards cryptocurrency, is the reason why banks are here to stay, sadly.

[OsaiEmma]

I’ve been thinking about how the financial world is changing.
Traditional banks still dominate global payments, but crypto keeps growing every year.

Some people believe banks will eventually become irrelevant as decentralized finance expands.
Others argue banks will adapt and become even stronger by integrating blockchain.

What do you think?

✔ Will banks slowly lose their power?
✔ Or will they evolve and stay essential in the future?

Curious to hear different perspectives from the community

No matter the kind of evolution Bitcoin brings, the bank will always remain relevant, unless Bitcoin becomes wildly acceptable and becomes a legal tender (the probability of that is slim) then banks can become obsolete, but there will be a lot of people who will opposed that cause it won't benefit them as much as the traditional way of doing tynz is benefiting them right now

[YOSHIE]

✔ Will banks slowly lose their power?

No, the Bank actually gets new powers that are much better than the existing ones, from traditional and manual banks it will become a high-tech and good Bank, With the availability of blockchain, the data stored is well maintained, since the arrival of Bitcoin, crypto banks have generally found the best position in banking and data storage.

✔ Or will they evolve and stay essential in the future?

Yes, this has definitely evolved from each other, banks and crypto or Bitcoin have good ties in terms of banking technology and so on, so banks and Bitcoin are one way to reach the pinnacle of success in the future.

[Furball808]

✔ Will banks slowly lose their power?
✔ Or will they evolve and stay essential in the future?

The only way a bank will evolve is if they incorporate bitcoin or crypto into their system. Otherwise they will be considered too traditional or outdated. Exchanges we see are kind of like banks too except they have no physical infrastructure and focus more on crypto rather than fiat. Considering fiat will never disappear, banks will also not disappear as long as they evolve with the times as well.

[macson]

✔ Or will they evolve and stay essential in the future?

Replacing the role of banks is no easy feat, as banking systems are deeply embedded in society and more people are using them for their daily transactions. I doubt cryptocurrency can replace that role.

So, it's highly likely that banks will adapt to the times, adopting blockchain technology and making their services as user-friendly as possible, just as people use cryptocurrency, to make them more relevant and competitive in the digital age while maintaining their user base.

[The Cryptovator]

I’ve been thinking about how the financial world is changing.
Traditional banks still dominate global payments, but crypto keeps growing every year.

Some people believe banks will eventually become irrelevant as decentralized finance expands.
Others argue banks will adapt and become even stronger by integrating blockchain.

Regarding centralisation and decentralisation, both are conflicted; the sound itself is conflicting, to be honest. So don't expect a centralised traditional bank to support Bitcoin or crypto payments, though they cooperate with crypto in some cases. Banking systems have been controlled by the government, and this is the power of the government. Do you believe the government want to lose their power by enabling crypto global payments? Don't forget the potential risk of crypto volatility.

In my opinion, slowly centralised banking would move into the blockchain system, not to the existing crypto directly. There would be something new or an international CBDC like USD, so it would help to solve the global payments system. To be honest, crypto becomes a different industry; it has its own world, like fiat. Just fiat in the real world, and crypto exists in the virtual world. Banks definitely have to implement their transaction system on the blockchain; for that, most likely, they have to create an international money.

[samadam007]

I’ve been thinking about how the financial world is changing.
Traditional banks still dominate global payments, but crypto keeps growing every year.

Some people believe banks will eventually become irrelevant as decentralized finance expands.
Others argue banks will adapt and become even stronger by integrating blockchain.

What do you think?

✔ Will banks slowly lose their power?
✔ Or will they evolve and stay essential in the future?

Curious to hear different perspectives from the community

Banks won’t disappear, but they’ll need to evolve. Crypto and DeFi will push them to adapt and the smartest ones will use blockchain to stay relevant

[aylabadia05]

What do you think?

✔ Will banks slowly lose their power?
✔ Or will they evolve and stay essential in the future?

Curious to hear different perspectives from the community

Change is real and inevitable. Those unable to adapt to change will sink into oblivion.
Banks have also revolutionized with change, but they will continue to exist, and their power will continue to operate as it should because they are under government control.
Government products will not disappear; they will always be maintained because they are part of the assets that continue to benefit them. The question of how this impacts those with the highest power (the people) is a later issue.

Bitcoin, in particular, is a manifestation of the power of thought, a system of freedom afforded to society now and in the future.
This system, with full control in the hands of users, will be protected by them. I have no problem with it, as long as they don't ban it completely.

[Floxynice]

The banks have always adapted to the technological shift in the world of finance. The banks started with physical valuables, then as fintech advances, the banks adapted too instead of shutting down. Banks have now gone digital just like Bitcoin,  the only difference now is that the banks are centralized while Bitcoin is not. What I am convinced of is that in the future, banks will integrate blockchain technology into its system and operate smarter than they do now. No bank in the world will become obsolete.

[Smartprofit]

In my opinion, commercial banks have no future. And not only because of the development of traditional cryptocurrencies. First and foremost, commercial banks are threatened by the development of central bank digital currencies (CBDCs).🤌

CBDCs can function perfectly well without the support of commercial banks. As a result, commercial banks could very soon lose a significant portion of their profits. The owners and top managers of these banks have already recognized this threat. For example, the Russian commercial bank Sberbank recently removed the word "bank" from its name. It now positions itself not as a commercial bank, but as an innovative technology platform. The bank's CEO explains his decision precisely because, in his view, commercial banks have no future.

And, of course, Bitcoin is the ideal bank for individuals.💁 For example, Bitcoin can be used to conduct transnational transactions (without financial censorship and compliance procedures).

[r_victory]

I believe it will be easier for banks to adapt to the new reality in the future than to give up; I don't think they will lose power, they haven't so far. Blockchain technology is already a reality in many banks, as are tokenized assets. Integration is possible and is already underway.

[qurbanshah02]

I believe it will be easier for banks to adapt to the new reality in the future than to give up; I don't think they will lose power, they haven't so far. Blockchain technology is already a reality in many banks, as are tokenized assets. Integration is possible and is already underway.

We will also see such a time because crypto is spreading on a very large scale which is a new change which will make us even better. Although many places have started adopting this in banks. But they are not like that, they use crypto in their banks and put a crypto or bitcoin logo in their bank which they tell that we also accept bitcoin but it should not be taken for granted that we will easily use it in our business. There are enough such assets which are said to rule crypto banks also I think crypto should also be kept in banks which will have a lot of impact on their branch. This will also benefit crypto and banks which will make this digital work more.

[Pauldesaints]

Banks will not become obsolete because many depends more on fiat money especially in the sub Sahara Africa where there many uneducated and people who know nothing about Bitcoin.they will only accept only one payment system which is fiat money

[Faisal2202]

✔ Will banks slowly lose their power?
✔ Or will they evolve and stay essential in the future?

With blockchain technology, they will never lose their power, it just means they are going with the market and adopting new technologies, which also means they are open to new developments and are ready to tackle any situation they could face. As banks adopt blockchain means they indirectly adopt the cryptic world indirectly and eventually, they will adopt more as they already are but they are just adopting blockchain and to be honest, that's not a huge win for the crypto industry.

Banks are going to be essential in the future without any doubt, as they are the basic part of society and they are in the system, integrated into finance, like the roots of banks are so deep that they can't be erased, replaced.

[death69]

Banks are going to become irrelevant which is different and worse for them. Adaptation must be offered something. What about banks provide what they actually do? Custody, lending, payment, yield. That's the product suite. Now run through each one:

Custody? Bitcoin fixes this. You hold your keys, you hold your money. No middleman skimming 0.5% a year for the benefit of maybe - not losing your funds in the next bailout circus.

Payments? Lightning Network takes milliseconds for fractions of a penny to settle. SWIFT takes 3-5 business days and has a fee of $45.

Lending? DeFi protocols are clunky right now, but they're iterating in the public, permissionless, globally. Banks follow their iteration of committee meetings and regulatory capture. Have totally different metabolic rates.

Yield? Banks give you back 0.5% APY while lending your deposits at 7% and pocketing the spread. The audacity of that arrangement only survives because people don't know that they have options.

So what's left? Trust? The 2008 crowd would like a word. Stability? Ask anyone who has Lebanese pounds or Argentine pesos how that's working out.

What people want is financial services. They don't want the baggage of 400 years of institutional history that goes with them. Bitcoin and the infrastructure around Bitcoin can provide the services without the baggage.

So, will some banks integrate blockchain? Sure. They'll launch stablecoins and tokenize assets and call itself innovation. But bolting new technology on to broken incentive structures doesn't fix the structures. It just makes them more efficient to be broken.

[Guccho]

I do not believe that banks will die out entirely. Instead, it will evolve with time, as newspapers, telecoms or retail businesses had to innovate themselves with the introduction of the internet. Crypto and DeFi have demonstrated that we can do transactions without intermediaries but the majority of the population continues to depend on banks to receive salaries, borrow money, and keep safe savings and financial security. Hence, it is hard to instantly develop an alternative to banks.
As it might be seen in the long run, the traditional banking and the decentralised finance will coexist. The users will be selecting banks when they desire less risk, and crypto when they desire freedom. That is, the power will diminish yet banks will still be significant in a new way.

[Cookdata]

I’ve been thinking about how the financial world is changing.
Traditional banks still dominate global payments, but crypto keeps growing every year.

Some people believe banks will eventually become irrelevant as decentralized finance expands.
Others argue banks will adapt and become even stronger by integrating blockchain.

What do you think?

✔ Will banks slowly lose their power?
✔ Or will they evolve and stay essential in the future?

Curious to hear different perspectives from the community

Irrelevant you said? And what do you think people will use? You think Bitcoin is going to change the financial global challenge. That depends on where adoption is going. Majority of Bitcoin holders are buying Bitcoin to hold and not use for daily transaction and this beg the question if Bitcoin can do what you think. Bitcoin represents more of asset for been hold, look at the institutional investors that we are having everyday, they are buying to hold rather than been use which is why I doubt if they are going to do any replacement.

Bitcoin and banks can coexist without affecting the global financial system because if banks are going to become useless, then know that government is going to kill any competition. I don't even see banks going anywhere, they have the governments backing, the worst has happened back then and what did they do to stablize the economy? They printed more, during corona time the government printed more money and what did they do with some of the stimulus, it were disburse and same money flow into stock and crypto, that's when we saw the massive pump of markets in general.

[PrivacyG]

It's even a lot of work trying to look over one's shoulders everytime one passes on the way, trying to make sure no one backstabs one; literally speaking, anyway. That's how I see being custodians of our assets. It bugs the mind to always think anything could go wrong once we forget our passes or someone else hacks them. If it were to be with Cexs (yeah, I know all the "not your keys, not your coins" thing), we only need to remember a registered email in case we forget our password. People don't easily forget emails, do they? My point is this – both Cexs and Dexs all have their own shortcomings.

I definitely agree that there are Pros and Cons to both Centralized and Decentralized ways of storing any thing, not only Bitcoin.  But when it comes to Bitcoin, to be honest I do not see the point why people who pretend to like Bitcoin for the features it offers, which obviously includes Decentralization, self governance, full control over your own Asset et cetera, but hold it in a Custodial way.  It does not make any sense.