Banks will have to adapt to the development of Bitcoin is to survive

Professor, graduate school of business Stanford University Darrell Daffis argues that the business model of banks will seriously change in the next decade. The reason for this will be the impact of cryptocurrencies on the banking sector. Against the background of rapid growth in the popularity of alternative methods for calculating banks will be forced to invent new strategies when working with clients.

Change is inevitable

Professor Duffy said that the public should not be misled with a relatively low adoption of decentralized cryptocurrency like Bitcoin. Also do not take the potential launch of Libra from Facebook like a death sentence for traditional crypt.

The future is coming and it will be harmful for those banks that do not follow the innovation.

However, the form of digital assets even not important. Will this stablein, backed by the dollar, Libra or Bitcoin — all these assets reduce the attractiveness of conventional Bank deposits in the eyes of Bank customers. So, for cryptocurrency, they will seem a waste of money. For example, for the last day of the course is the first cryptocurrency grew by 33 percent, and someone to make money. Banks such profit can not be obtained in a year.

New means of payment will be a good competition to traditional Bank deposits. If customers will be able to pay the bills bypassing the Bank, and the business will be able to access their profits much faster, the profitability of banking services disappears.

According to preliminary estimates, the consumers and businesses keep more than 14 trillion dollars on Deposit in U.S. banks with very low interest rate. Duffy argues that if public pressure and technology is strong enough, the status quo of the banks in the future could seriously falter. In other words, they are no longer single-handedly control the world economy. The revolution in private sector Finance will make Bitcoin and other cryptocurrencies are very popular means of payment.

Image source — Bitcoinist

Some banks are smart enough and will go up with the progress. That’s good, because even customers who are not interested in cryptocurrencies, you’ll get better service. However, those organizations that fail to stay on the cutting edge of innovation, will come under serious blow. According to Duffy, the development of the cryptocurrencies and the rise of the level of their acceptance in the world can lead to the collapse of many traditional banks.

Read also: Greed of bankers is forcing customers to look at Bitcoin.

Bankers feel in the crypt of the competition, so its distribution will strongly interfere. Recently, we have identified five reasons not to expect quick launch of Facebook from Libra, one of which was the pressure regulators. So that the factor of the government is really serious.

However, the winner of this battle will still be Bitcoin. So says the author of the book “Mastering Bitcoin” Andreas Antonopoulos. In September he compared the current financial system with the cartel, because the industry with a turnover of 114 trillion dollars is driven by six major players. Fortunately, cryptocurrency is able to change it.

If you also support the decentralization of all, join our cryptodata millionaires. Also don’t forget to check our page in Yandex Zen!


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