Topic: Banks and Bitcoin- The needed change (Read 394 times)

Which is why this idea that those people have of bitcoin eliminating banks is never going to happen, banks are not going to sit and do nothing while bitcoin takes their business away, they will adapt and when we take into account that not every person is as freedom loving as we are then banks have a bright future ahead of them.

So what we need to concentrate on is that bitcoin reaches critical mass so at some point in the future we can pay with our bitcoin at any business and we do not get strange looks when we pay with bitcoin.

The importance of banks cannot be denied. They are more involved in our daily routine life. People have much trust in the banks as compared to cryptocurrencies. Yes, we can say that cryptocurrencies have gained very much popularity in the current ERA but the importance of banks also cannot be ignored. As the matter of fact still, there are many people who don't trust cryptocurrencies.

Banks are getting adopted to the cryptocurrency usage. More collaborative functioning is taking place around the globe. Largest bank of Columbia have partnered with the Gemini exchange to offer bitcoin trading. This partnering is part of the government pilot program.

Columbian government is much interested and it has started the one year pilot program to bring bitcoin to all its citizens in a straight forward manner. So, needed and expected change is slowly happening around through the banks as well.

Source : Colombia biggest bank to offer bitcoin trading

The 66% would have been meant that the rest of all bitcoin owners in the whole world would have definitely a bachelor's degree. That combined with statistics that show that only 30-40% of the western world holds a bachelor's degree, if we assume an 80% when it comes to crypto owners it would push up the percentage needed for Both Nigeria and India to over 88%.
Common, let's be realistic.


Statistics show only 27% of high school graduates going for a tertiary level of educations for India
So it's not like everyone is more like one quarter and this if we count young poeple, probably if we go in the 40-50 yo area this would drop to below 5%.


The capacity is one problem, for now, but the other is the integration of services and a way to have this work on some blockchain, something that to me with bitcoin alone seems impossible.

People really think of banks just as cards and deposits, they ignore merchants, companies, and 99% of all businesses, for example, we have an open working capital credit line with our bank, if we somehow at the end of the month we don't get the money from our partners but we need to buy something or pay bills we have a 30 days grace period with zero interest up to 15% of our prior year revenue that we can use for emergencies.
How would that work with crypto and without a 3rd party?

Crypto Currency is the latest technology in the world beating all of the headline,the funny part of it is that,the cryptocurrency sphere has come to stay, it's high time the government embrace this trends,make some regulations in other to carry down efficient performance from them.

People want change but are still reluctant to fully accept and embrace it.
Bank are doing good,but the time for an upgrade has come, adapt to the crypto currency sphere is all they could do.

The bank will exist and maybe the banks will evolve to something different and who knows, the banks will integrate blockchain systems and introduce to the public how blockchain works. The key here is how the government can adapt to the current situation and use it for their benefit and not against what happens in their country instead of searching for more info. If the government can accept the change and follow the technology and try to grow with the technology, I think their people will like them so much as the government supports the technology that can give a better way for their people lives.

The ownership of a bank account is not synonymous with satisfaction of a bank account. What percentage of people are forced to use a bank account because they must subscribe to the traditional notions of modern banking, owned and operated by their country's government? What percentage of people would gladly switch to a decentralized system with more control and ownership of their funds oppose to relying on the government to sustain their account balance and purchasing power? A future without centralized banks is not as far off as you think -- the moment when people lose confidence in traditional currency is the moment modern banking collapses.

Crypto is now becoming more inevitable as its adoption will certainly take place sooner. But despite all of these, banks on the other hand will never be threaten as they will stay for good no matter what. As long as the government is always at the back of banks, then banks will always operate and i still think that a lot of people are still needing banks. And with crypto, more people are now inclined to it so they are now aware on how to use it just like using fiat. But as long as crypto or bitcoin in particular is decentralized, it will always be an option for fiat.

Well that has been said so many times by a lot of people, but it’s really hard for me to believe that right now. Banks are still going to be around, may looking at the way things are going, because we know that that’s what the government wants. First they have introduced their own central banks digital currencies (CBDC) which the banks are actually going to be in control of.

A few countries have rolled out this CBDC: China has released their own cryptocurrency which we all know as the Digital Yuan, and Nigeria followed with their digital Naira or E-Naira. It’s possible that more and more countries would still be releasing their own digital fiats as there has been so many talking about it. And it’s also quite possible that there would those that would declare Bitcoin a legal tender as we have seen El Salvador do, but that didn’t make them replace the banks with cryptocurrency.

Banks will not disappear, not only for these reasons. Cryptocurrency has practically no influence on them. People also have different opinions about both banks and cryptocurrencies. But the most important thing is the attitude of states and their governments towards banks. Banks are actually part of the state system of power, since they implement the financial policy of the state and serve the economy of each country. Therefore, it becomes obvious that states will not even tolerate threats to the existence of the banking system. Banks will exist as long as the states themselves exist.

I believe even Bitcoin supporters still need a bank in their lives. Because the majority of countries in the world forbid Bitcoin to be used as
a means of payment. Then it is impossible for banks to disappear, after all the government will not allow Bitcoin to replace banks. Moreover,
Bitcoin still has several drawbacks that are a barrier to being used as a means of payment. I think Bank and Bitcoin are better co-exist,
so we can benefit from both.

Banks will not disappear and may evolve as technology advances. Don't we still need banks to process FIAT. whether those who want to fight the Bank really don't use FIAT in their life. I think Banks and Bitcoin are two things that have a bond because we still need FIAT and Bitcoin.

I also believe that this volatility thing for bitcoin will be a big barrier for people to adopt bitcoin in the long run because it may create doubt and confusion to its users. So even if there is global adoption for bitcoin, it will be unlikely that all of them will start to ignore banks as banks will never be eliminated because that will always be the first choice of people, and bitcoin will only be their second option. And as long as banks are centralized, it will never be easily extinct because that will also mean a big loss for the government.

From what we can see and the real status of Bitcoin, it was just mostly considered as a form of investment, not a currency which is less likely it forces the banks to think their closure and replace by Bitcoin. There is nothing to argue about the said "bank disappear" as it can't happen as for sure that not all will adopt and use Bitcoin, as still fiat money exists and the government will continue to print paper money.

Having to see Bitcoin as an effective payment system? As long the volatility of the market remains where people still doubted, that will be uncertain.

But, there's no intense of enforcement. I believe that the better money will distinguish and that's all I'm saying as a Bitcoiner. Neither that the current monetary system will be replaced, neither that the banks won't be needed. No, no, no. Far from that. The only think I'm demanding is to make it accessible, to spread its adoption. I may not live in a society that there's only bitcoin, but I want to have it as an option.

I'm convinced the average Joe won't use it. What I want is from every human on Earth, to have it as an alternative. 'Cause I consider it in favor of human rights.

There's no such thing as financial assistance in crypto, in fact, investing in crypto is risky, so that's a false statement from whoever said and think of that. Crypto, in order to replace banks, should be an effective payment system, but it's not the case now as it's viewed more as an investment than a payment system.

The majority had thought it won't, traditional banks remains as it was and continue to give services for the people who are still using them. Actually, big companies are one of them. Even they thought about accepting Bitcoin but for them to secure their funds, banks are their choice, not crypto wallets.

I believe we can see huge changes that Bitcoin brought to us but this doesn't mean we have to change everything and this is one best example.

They'll only reconcile if crypto will be regulated like banks, I mean, in order for banks to accept crypto, they need to be regulated based on the standing banking regulation so they will comply with the standard banking system, with that said, crypto anonymity will not be enjoyed since banking system requires transparency on clients where they promise to keep that private information of us confidential.

even what happened to crypto currency in the future even a lot of people used it as a legal tender for sure traditional banks will not disappear because its the most trusted one ever since before and 100 percent sure that some of the governments will not let that things to happen as they're very against when it comes to crypto as well because of some reason.  Perhaps there's a limitations maybe its possible, you know what i mean? Because i truly believe that it cannot closed those traditional banks as well even in the future , so crypto needs a crypto banks for themselves if however in future they will become a legal tender.. Not to close those traditional banks because it's very impossible to be honest..

While 50 Million Ind+Nig+Kenyans having 100K wage would be a stretch, the 66% bachelor's degree isn't that unbelievable of a figure. Bachelor's degrees aren't really that hard to come by in developing countries where there are Govt funded institutions that dole out degrees in humanities or commerce. Professional degrees maybe a little harder to come buy but almost every middle class person gets bachelor's degrees.

I mean there a billion people to choose from.. Its not that unbelievable.

To OP wondering about disappearance of traditional banks, well sure, "Traditional" banks will disappear but the owners and regulators will continue to stay the same. The wave of fintech is already changing the way banks function. But removing them is now out of the question since Bitcoin has become something different now. The P2P economy is filled with gatekeepers now. KYC on CEXs is the new norm and acceptable to most majority. Its just that Bitcoin will always give an option for those who want to exercise it. As far as the actual usage is concerned, it is clear for everyone to see.

I don't see Bitcoin displacing the traditional bank anytime soon. They can both coexist. Let's see how the future unfolds gradually.

You can forget about this whole "Bitcoin will soon replace banks thing" until Bitcoin's technology is actually capable of doing this, which is not happening soon, maybe it won't ever happen. It's no secret that onchain capacity can't cover the daily need for transaction of even a small country, and even with Lightning Network, if everyone tried to open a channel, the backlog would be enormous.

Traditional banks won't disappear so easily. At least not any time soon. It takes decades to convert from one payment method to another.
For example from barter system to gold coins and from gold coins to fiat currencies. It tooks decades to go from one to another.
Even the credit card system took years to become well established. Cryptocurrencies have just started to go mainstream.
We cannot really say if it will disrupt the fiat currencies so that traditional banks disappear.

Banks have always been the most powerful back-up for the government and vice versa. We live among people who like and don't like crypto. Therefore, there will be a balance that will work until the point where banks and crypto can reconcile. But is it possible in the near future? I'm not sure, considering that in the country where I live, the only crypto agency that has contributed to protecting crypto growth is now being pressured by the Bank to audit everyone in it. It's really worrying how cryptocurrency at the end of this year has become something that is often attacked by those who feel excluded. Especially in the country where I live.

it is very difficult to eliminate something that has become a necessity, especially a bank that has been used by all circles, to make changes is very difficult, replacing a bank with bitcoin is not an easy job, according to my analysis if you make changes like that most people will definitely not accept it. .Everything needs a process..

The government will surely protect them as this will give them the benefits as well. Perhaps, Banks have been back-up by the government which gives the assurance that they won't stop because of crypto. No, they will still exist even the majority are using crypto and as long as not all want to adopt Bitcoin, there is still a reason why banks continue giving their services as there are people who need it.

Hahaha, another one of that news about millions of crypto users, but this one is hilarious.
Let's just do a bit of math on this:


283 million, good...no problem yet


Now, counting in the fact that only 38% of American households make over 100k, I wonder how that number goes globally! It would need about 50 million Indians and Nigerians and Kenyans with a wage of over $100k a year. And this considering that even the rest of the world would be capable of holding that 36% number, and not even Europe comes close to it.
82% have a Bachelor's degree would imply that either the entire rest of the world has one or India and Nigeria owners have a degree in about 66% of cases, do you see that possible?

It won't dissappear at least in 50 years what ever someone did it to the banks because it's already there for hundred years and the banks owners and their top level managements are people who have big powers.
Crypto owners is just a little percentage compared to people who use banks, we need more crypto adoption and also need more developments before we could erase bank and replace it with crypto, and it will need some people who have a great power also.

I think that Banks and Bitcoin are undergoing a process of change with a better development towards a new era. However, regardless of the changes, there will still be people who hate both or one of them. So people's thoughts should also be changed so that their mindset can be directed so that the country will also accept it. The community is expected to take part in the development of banks and crypto.

I agree. I also think that banks will never disappear some time in the future. On the contrary, banks will start fully integrating with digital currencies to survive in the future also. And they have to do this as they will have no choice left. Fiat money will not stay in our life forever. Maybe in 10-15 years, this change will complete and we will start using only digital currencies.

Honestly, I agree with you. So far, it's not even a competition. It's hard to find precise data, somehow, but at least 1.2 billion (in reality, it's probably around 3 billion) have bank accounts, whereas only 300 million people use cryptos. Also, it's not like the vast majority of crypto users don't have bank accounts, so even this discrepancy doesn't show the real difference, as people can easily combine using banks for money and treating cryptos simply as a way to profit. I also agree that people don't like change, and people also don't like it when there's nobody in charge, nobody to guarantee the safety of your funds. So cryptos aren't likely to replace banks, not any time soon.

The bank will be fully in existence and maintained by the government. As long as the system of government of a country is still standing and still needs income and position to remain part of a sovereign country, of course the Bank will continue to be their financial supporter. However, the existence of the Bank will determine a country regarding the financial data they hold, especially if they are tied to the IMF which must always be the responsibility before it disappears to the surface. Banks will always be bound to continuously monitor every incoming financial entity and citizen transactions. So cryptocurrency does not replace Bank, in future Bank may affiliate with crypto to stay afloat.

It should be borne in mind that the banking system is part of the state system of government and therefore is under the protection of each state. Therefore, banks will not disappear under any circumstances. In addition, cryptocurrency is not able to replace banks, since they have different functions, methods and methods of existence. We also see that banks will use blockchain technology to improve their efficiency and take steps to create their national digitalized central bank currencies and this will bring cryptocurrency and CBDC closer together. However, all types of means of payment must find their niche in the global financial system.

Banking system is binded with every transactions and individual or a business do. So, I guess that reason alone is convincing enough to believe that banks aren't going to disappear even in the far future. Cryptocurrency still has a lot of flaws from the transaction fees and speed down to convenience.
Once you send Bitcoin it cannot be reversed nor prevent the wrong recipient from spending those. Some people are afraid in commiting a single mistake in crypto transactions and prefer to use bank intead.

So it’s all a matter of choice for the people in the future. Either they will go with bank transactions, or just transact online with bitcoin and with more speed and security. The needed change for bitcoin and banks is not the speculation that banks will be extinct soon as cryptos are here to replace, but the high possibility that they will co exist so the people should have more option which one to use. I think the government is also seeing it the way we see it but they seem to be denial for now.

No, that's not what I meant. It's a matter of people's interest in using it sustainably. We have faced many network issues like stuck transactions, expensive fees to prioritize. And what is most felt is those who only transact a small amount, of course it is not worth it.
When the situation is urgent, bank transfers are more appropriate to use which only takes a few seconds. People wouldn't really leave "middlemen" if they could offer something better, especially speed.

Not all people in the world adopt bitcoin so that banks can be eliminated. only a large proportion of people adopt bitcoin and are able to transact using bitcoin as a medium of exchange, while small communities do not use bitcoin because they cannot afford to invest in bitcoin, so the small community only uses fiat money as a form of transaction money using banks as the medium.

The government will always protect the banks no matter what, even when we hear about the severe economic crisis that the country is experiencing. As some news reports say that bitcoin is being lauded as a proven solution when Lebanon is going through a financial crisis, but local banks are still open to services.
In addition, the various comforts of people will fight against each other. Bitcoin's built-in mechanics are naturally unchangeable and not everyone likes such payment systems even if they have adapted.

Banks won't disappear. This will never happen. It is not as if Bitcoin and banks are mutually exclusive. It does not mean that you cannot have both. It does not follow that because you are using certain banking products and services you cannot anymore participate in the promotion or adoption of Bitcoin.

I wonder how many people who have Bitcoin and are very actively and passionately arguing for Bitcoin also have bank accounts at the same time. I even think that many of the Bitcoin maxis also have bank accounts.

Banks is already an institutions on every country and has been in existence for centuries now. I doubt that will simply disappear just because crypto is here to stay for good.

As much as we hate the banks, maybe there are still people in crypto who still uses them. Although banks customers might dwindle because there are going to be a influx to crypto, they are still integral part of every nation.

They're just saying things out of reality, most people who got their freedom on cryptocurrency were too aggressive to say against banks. But that's not right in the first place, we needed banks to process our digital money transactions. Without them we can't bridge crypto towards fiat money.
Speculations like this considered as hoax, banks and btc got a strong bonds.

We have to accept the fact that traditional banking will still remain.
Not seeing in our lifetime that crypto will replace the banking system.
Traditional banking is under the government's supervision and they are centralized.
Whereas, when you talk about crypto, they don't have the full control of it, so it is not in their interest to prioritize this over the current system.
Just be grateful that in most countries, one can transact both, crypto and traditional banks.

Well, you already mentioned it and this is the answer.
There are too many cons and pros about this when we are talking and comparing banks and cryptocurrencies which is also no one will remain to stand of them, it should always be there. When you want to save your money that is under your control we have crypto and if we compared it to a bank, which is the tradition of saving money by most people and investors as well --its totally different because you are under monitoring by your government and you should be pay tax on it. However, these arguments I always ever heard since the start of bitcoin, why we don't accept the fact that it should be both of them will remain.

Not everyone wants to be responsible for their money. Fiat actually has built in protection for users because of its reversibility, however the drawbacks for having that ability is much more of a con, than it's a pro for me. So, basically banks will always exist for these types of people.

I'll give a stereotypical example, though this isn't, and shouldn't be taken as representative of the population. Imagine, a person of the older generation who isn't very technical when it comes to computers, in fact they struggle to use modern computers, and these types of people are unlikely to understand Bitcoin. Bitcoin while the usability, as well as the accessibility has definitely improved over the years, since includes technical terms. This type of person I'm trying to give an example of isn't likely to understand mining, and isn't likely going to understand security on digital devices. Thus, a third party which manages their money will be beneficial to them, since it has added in fraud protection, security, as well as ease of use. This isn't going to happen with Bitcoin since the key element to it is you have complete control of your money, which results in you being completely responsible for your money.

Bitcoin, despite the wallet software being much more user friendly, is still difficult to use. For example, checking an address to make sure its accurate, checking fees so you aren't grossly overpaying, since most wallet software overestimate, and assuring you follow security protocols so you don't risk your funds, this isn't something which is easy to do for the typical non technical user.

Unless, Bitcoin becomes much more user friendly, and provides a idiot proof system of sending, and receiving Bitcoin its unlikely to suit everyone. Although, I believe banks will always have a place in the world, they'll only be used by certain people with certain goals, the vast majority will likely see the benefit to having complete control over their wealth. However, what's clear is banks will need to adapt to this, they'll definitely be losing business in the future, and they'll likely need to adapt the way they work to fit this certain demographic that will require their services.

Not really accurate. Bitcoin certainly isn't untraceable, in fact Bitcoin is more traceable than cash. The public ledger makes it possible to see every transaction ever made with Bitcoin. I think what your getting confused about is; Bitcoin is pseudonymous, and therefore it isn't obvious who made that transaction i.e the identity of that person. So, while there are more privacy oriented cryptocurrencies than Bitcoin, cash is fairly good for anonymity itself. This isn't the major selling point to Bitcoin, far from it.

Crypto will be in progress until massive adoption takes place. But crypto won't certainly take place the bank's position as its here for good. And same here for crypto. In fact, crypto is created not to eliminate banks but to serve as an alternative to fiat so banks are still needed even in the future. And for sure majority of the people would still prefer to use the traditional banking system than to use crypto alone.

However, crypto may be our future too so once it will be globally adopted, banks will start to integrate crypto transactions into fiat.  And that is the most possible scenario soon, not totally eliminating banks.

What is the nature of bitcoin? It is untraceable. Why do people use bitcoin? To stay anonymous If the only thing in crypto is to be anonymous, If these are the only reasons for using bitcoin, keep your portfolio private and use complete financial freedom.Then why do people go to the bank to keep it so that the bank can know about you, your holdings, and your activity too? Which is not the nature of bitcoin and we don't want it. We have our own banks, like hardware wallets, software wallets, etc.

Earlier, people didn't have any other options than banks to save money. Also in many countries, there is a law which prohibits their citizens to keep more than a specific amount of cash at home. So even if someone didn't like banks, they were kind of forced to use their service.

But with the emergence of cryptocurrency, now people have option to keep their money elsewhere. For sure, a majority of the population wouldn't opt from banking, but now they can. It takes time to change social behavior. So may not happen in near future, but banking system will be forced to evolve to suit their customer's need.

This change might be unimaginable right now, but not impossible!

Obviously, it is merely speculation, people have always loved to keep middlemen in their transactions. Even with the emergence of blockchain and bitcoin banks would not disappear for sure, emergence of defi space is a big booster to the finance world, I am sure banks would realize this pretty soon and will focus their future developments on this space. They will try and make most of their products in such a way that they use defi technology but at the same time allow them to keep control of the overall transaction. Banks are very smart and they won't easily accept their defeat in this game.

OP, Would you like us to change our assumption about the likelihood that bank will be replaced by bitcoin?
Banks will exist for a long time even though the government can try to make change to bitcoin or cryptocurrency regulations in their country. The banking system is not liked by everyone, and people are doing the same with bitcoin. I wouldn't even think that my country would abolish bank just because they can create their own cryptocurrency and in the end all this won't change so fast. Banks are needed by everyone who doesn't know or care about the existence of bitcoin, but I still want to know what to change.

Banks and fiats are inflationary. Bitcoin is deflationary. I don't see difficult to choose one from the two. It is Bitcoin, it's my choice.

They will both be changed. With banks and fiats, they will be changed to CBDCs but their inflation won't change.

Bitcoin will be changed as well with upgrades. We have many upgrades in history and last two biggest upgrades are Segwit in 2017 and Taproot in 2021.

Banks have its own way of functioning. When banks weren't able to meet the needs of people we can think of something taking its place. As of now there is nothing that could take the place of bank. Every country have got its reserve, and these are all managed by the banking system. Why is bank important, because common man who doesn't have much knowledge about technology too can use it.

Another thing nowhere bitcoin accepted as collateral for loans on banks. Maybe this can change in future, right now very few number of financial services providing it. The next generation will have a varied view on this, because those days technology will be the driving force of each and everything.

Banks will not disappear because banks are not just offering saving accounts or debit cards.

You will not be able to get a mortgage with bitcoin without an intermediary you will never be able to get a credit card without the same, what's even more interesting is that poeple associate banks with the old institution and don't realize they are doing a lot of things on centralized platforms that act just like banks themselves. Even if for transactions, staking, collateral loans you will switch to those you're going to practically use a bank, it's just a name change.
It's the same story with all those new FinTech companies, poeple think they are ditching their bank while in reality, they are just ditching a name.


A utopian society is a society that is impossible to be achieved so, there is no such possibility by the definition itself.

Anyhow, we've had this discussion about banks so many times that is clear what everyone's opinion about is, only time will tell who is wrong and who's right, and by time I mean decades.

While I also believe that financial institutions like banks will not disappear, I will say that changes in the behavior of the population can come in two forms, a slow change and a fast change.

Fast changes in the behavior of the people happen because of some crisis which forces them to adapt as to not do so could bring some serious consequences against them, and what better example of this than the pandemic, in which the behavior of most people had to change almost overnight in order to address the crisis, and something similar could happen to bitcoin, once a huge economic crisis comes and people try to find a way to protect themselves from it they could find in bitcoin a solution to their problems under those circumstances.

No, it won't. Cryptocurrencies cannot substitute for traditional banking, maybe in a futuristic Utopian society that could be possible, but that's quite a long shot.
Bitcoin which was the emergent cryptocurrency, was not created to replace fiat and banks, it was meant to be another option as you rightly pointed out, an alternative means of sending and receiving money which does not need third party validation. And while Bitcoin has great potential to grow and become globally adopted, a centralized system of banking would always exist.

You didn't tell us what is the needed change. In my thoughts the needed change here is FREEDOM, yes it's freedom, because am not of the believe of crypto-currency, discharging, banks out if financial operation, what we need now in essence of freedom is for government to free up it's restrictions and ban on Crypto-currency, and allow whosoever the freedom to make their choice on either of the two crypto-currency or banking, or even both of them as the case maybe.

Banks are an essential component and I do think this is something that most people do realize already. Cryptocurrencies are something very different than the whole banking system and therefore one cannot compare these two things at any point of time.

-Most people are struggling with normal things like internet and mobile phones, old people being completely dependent on traditional systems, people living in places where even water is scarce, if everything disappeared, banks, fiat they won't be able to function.

They are very essential for the local businesses and also for many countries cryptocurrencies are not even considered important or are not even legal, therefore the whole economic system will take a turn for them.

-they need to integrate themselves with cryptocurrencies and make things easier for users. That would be better than them disappearing.

There are also a lot of people who don't trust banks, the same can be said for bitcoin too - especially when banks quietly underwent deregulation in a lot of countries without their consumers knowing.

Crypto has fees, as long as banks keep paying those for consumers I don't think people will care abut using bitcoin as a currency.

Banks won't disappear anytime soon because people don't like change very much and it takes time to force any kind of lasting change in society.

Some people say that traditional banks will disappear due to the emergence of cryptocurrencies because it gives consumers another option when they need financial assistance; however, I think this is unfounded speculation.