Banks will be replaced by exchanges in the coming years
Cryptocurrency is going to be the future of payments and It is high time we start thinking about having more cryptocurrency exchanges than banks. I understand that we have serious sentiments about Banks but there is a high possibility that in the coming years slowly the crypto exchanges would start taking over banks and maybe we might as well reach a point where banks would be completely replaced by crypto exchanges.
There is also resistance in the opposite direction where banks don't want the growth of cryptocurrency exchanges and they completely want to get rid of exchanges. Looking at the Binance case, it made me feel this way that it was an intentional thing where SEC is going against crypto exchanges and ultimately they don't want the exchanges to grow and this technology to grow further.
What is stopping exchanges?
Currently, the biggest challenge we have is the regulation of cryptocurrencies. Many countries are finding it hard to adopt cryptocurrencies because it is hard to bring proper regulations. Most of the exchanges operate in multiple countries and having one regulation that can fit all the countries is challenging. Another biggest challenge is to regulate things in the decentralized world. People go for cryptocurrencies looking for an opportunity to decentralize their funds. But if there are too many regulations to do that, it becomes very hard and people find it very hard to deal with both the government as well as the exchanges.
As mentioned in the above paragraph, I would also like to say that maybe banks are not very happy with exchanges taking over and they are silently not letting the exchanges grow. This is also one of the biggest challenges exchanges face in many locations. When the cash deposit and withdrawal system is down on an exchange, we can say that the banks are resisting and it can also be the case that they don't know how to regulate the system.
People would start doing p2p crypto transactions
This is the future if you believe me or not. Of course, this is just my prediction but can take a lot more years for this to happen. People might start trading in cryptocurrencies from one wallet to another wallet without any middleman. It is not that it can happen only in the future but I can already say that there are many countries in which this is already happening. In crypto-friendly countries, this can be made easy because there will be no need for a middleman or a bank exchange. Imagine a situation where someone in Singapore is purchasing groceries and they pay with their crypto wallet in the store.
If this happens there is no need for government interference and there is also no need for further regulations too. I believe there are a few places already where this is happening and soon this can happen in many other countries where people would not expect the government to regulate cryptocurrencies and they might start doing p2p transactions. It will be like our good old Barter system where people buy Tomatoes and they give Onions in exchange for that. The same is happening with crypto too. For one crypto people are giving another crypto.
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Banking is free for a lot of people without having to pay any transaction or mining fees
Indeed.
The way we're seeing people are still coming in very well to this industry and we'll see within the next few years it's going to be the way you're talking about and people are throwing away. The above will stop believing at all and the banks that are there will also start like exchanges. The time is not far off when all these things will begin to happen in this way.
Interesting times ahead. The crypto space shall eventually face a mainstream adoption and that is the moment we're all looking forward
Yes I can't wait to see when it would happen. 🙂
Yes and no as banks will still be around maybe not used as frequently. The problem is the exchanges themselves as so much has to change in order to see this happening. Would you be happy replacing your bank with a Binance or the equivalent as I know I wouldn't and I am someone who hates banks but sees their uses. The exchanges have to come a long way and make so many changes before they become a viable option for the masses.
Yes true there is still a long way to go before we can expect banks to completely vanish.
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"Imagine a situation where someone in Singapore is purchasing groceries and they pay with their crypto wallet in the store."
This was happening since 2010. Bitcoin adoption was on the rise until 2015 when it was captured (by the banks).
Now, all that remains is the suppression of communities working in this approach from news and from the conscience of those supposed to be crypto enthusiasts. For some people, it takes a few months, and for others several years to realize who is working towards the adoption of censorship-resistant peer-to-peer electronic cash.
Yes the trend should change again. Hope the next bull run brings some good fortune for us.
With the persistent pressure from governments, despite the disapproval of the population, to implement Central Bank Digital Currencies (CBDCs), the role of retail banks will gradually be assumed by Reserve Banks in various countries. As a result, the current business model of traditional banks will become obsolete. In order to adapt and remain viable, it is crucial for banks to transform themselves into cryptocurrency exchanges. This transition may lead to a convergence of exchanges and banks, potentially even resulting in acquisitions between the two. Exciting times lie ahead as the financial landscape undergoes significant transformations.
I'm thinking it can take a minimum of 5 to 10 years for all these to happen.
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asi es mi estimado amigo @bala41288 el futuro de ese intercambio esa cada vez mas cerca
I don't believe fiat will be wiped out completely but I believe cryptocurrency will take like 90% of transactions in the future. If we look back at the evolution of money, none of these methods took over completely. They just reduced the use of the other. Till date, we do barter system but in a fashionable way. People still accept Gold for payment and when you consider the Government that always like to be in control. Fiat is easy to control than digital assets so they will keep it running.
I agree with you about p2p being the future of crypto transactions. The technology favours that. Banks acting as a middlemen is becoming unnecessary as exchanges continue to develop their capabilities.
I think you're right, in a way. CBDCs are going to be the only money allowed to exist. It won't be long until the US passes the Restrict Act, or something very like it, and encrypted communications are simply no longer allowed on the internet - for 'safety' reasons. The world will follow suit. VPNs will be banned, just as non-KYC exchanges are not allowed to exist today.
Tor, I2P, Freenet, Lokinet, and etc., won't exist anymore. The only secure communications will be local hardwired networks (these actually do exist already), or ad hoc radio networks people create themselves, such as Qortal or Beechat, but they will be discouraged, perhaps crushed with Swat style raids on folks using them. You'd be amazed how much shooting a few dogs discourages rebels. Central banks will issue CBDCs to replace fiat in bank accounts, and fiat will be no longer legal tender.
I don't consider CBDCs to be cryptocurrency, but that's all that's going to be allowed before long. I predict the global markets will be replaced by 2030. IIRC, the EU has already banned cash transactions over $600, and mandatory reporting of transactions around that size undertaken by the USA. I recall requiring the assistance of a 'sponsor' (who had substantial funds on deposit at that bank) at a large national bank a while back to cash ~$14k worth of checks drawn on that bank because I don't have a bank account. Of course this will eliminate banks, but it will basically replace them with AI on a global scale.
A form of global communication that is immune from regulation is necessary to enable unregulated global commerce, and I cannot see how such network can be created and maintained in the face of hostility from governments.
Sorry.
p2p seems to be really an easy thing for sure. I am really loving this concept we all are using this kind of thing for a long time now its time to scale this thing. 🙃 so no longer a need for banks. 😉 Great post as always thanks
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I agree with you. I personally believe that while it is quite evident that governments and banking institutions are doing their best to limit the growth of cryptocurrencies and crypto exchanges, they will not be able to do so.
And because of that, it's only a matter of time until cryptocurrency exchanges completely replace banks. When that happens, the purchase of any good or service using cryptocurrencies and cryptowallets will be a reality. Of course, as you said, this may happen many years from now, however, it is 100% certain that it will happen one day, and hopefully sooner rather than later.