Blockchain can change the way data is managed by banks, but it will be decentralized, less expensive and faster than the current model, such as the Ripple currency.
But there is a big difference between the blockchain, digital currencies, and banking systems. The difference between them makes the comparison between them wrong and similar to comparing the C language, Windows, with HP sales.
Topic: Can blockchain replace the traditional banking system? - page 5. (Read 826 times)
I don't think so, at least not in the near future. Too much is tied to banks, such as loans. Will people be able to take out loans in cryptocurrency?
Will it be safe, because cryptocurrency is extremely volatile and in case of growth, you will have to pay much more than you took.
Will it be safe, because cryptocurrency is extremely volatile and in case of growth, you will have to pay much more than you took.
Banks wouldn't allow cryptocurrency to take over on them, because fiat economy has the stable currency movements. Though we see some good points on crypto, but we have to consider the volatility of its market which I think business owners didn't want their money to risk on this idea. Blockchain will only be useful as an asset not really be associated with traditional system of spending like on fiat.
Blockchain is already part of the banking system, but it is only one of the technologies used by banks.
I cannot speak on behalf of crypto taking over the banking and fiat worlds however I can say that banks definitely can use blockchain for their data systems. I mean think about it, what is that banks do the most? They keep track of your money, well everyone's money, who sent who how much, who has how much, basically it is all about money and instead of just servers if they ended up basically doing a blockchain, then they could definitely make this a lot easier for themselves.
Most major banks spend billions on their servers globally, because they are not just in one place, look at HSBC they are basically in every nation give or take, they spend billions on servers because of this. What they can do however is create a blockchain, put everything there, allow people to "mine" hsbc token by helping them keep the system going, and then pay those people fiat, a stable coin maybe, and that way they will make it more secure. However letting the whole world see their blockchain is a bit of a problem obviously, so that is why they need to figure the privacy issue first.
Most major banks spend billions on their servers globally, because they are not just in one place, look at HSBC they are basically in every nation give or take, they spend billions on servers because of this. What they can do however is create a blockchain, put everything there, allow people to "mine" hsbc token by helping them keep the system going, and then pay those people fiat, a stable coin maybe, and that way they will make it more secure. However letting the whole world see their blockchain is a bit of a problem obviously, so that is why they need to figure the privacy issue first.
While blockchain has been gradually known and used in most areas of systems and databases, I can't say it would totally replace the traditional banking system. A blockchain is a form of technology that is recognized as a secured system, impossible to hack and change that easily. Its development is something that the cryptocurrency world is thankful for because most cryptocurrencies work such as bitcoin because of blockchain technology. However, despite its advantage such as being a lot more secured compared to the traditional system centralized organizations are built upon, it is not enough to totally replace the usual banking system.
Centralize organizations such as banks have been existing for a very long time already. It won't just vanish because of the emergence of new technologies because surely, they will do all the things possible to keep up with the current trend. In addition, it's really impossible to totally remove the fiat system. It will exist as long as there is a government. The cryptocurrencies will just coexist with fiat and the same way blockchain technology will coexist with the traditional banking system. Blockchain and crypto will be the next best alternative if people will opt to switch modes of transaction and store of value.
Centralize organizations such as banks have been existing for a very long time already. It won't just vanish because of the emergence of new technologies because surely, they will do all the things possible to keep up with the current trend. In addition, it's really impossible to totally remove the fiat system. It will exist as long as there is a government. The cryptocurrencies will just coexist with fiat and the same way blockchain technology will coexist with the traditional banking system. Blockchain and crypto will be the next best alternative if people will opt to switch modes of transaction and store of value.
Blockchain technology is being used for certain applications by various countries in different ways. Basically, expecting blockchain to replace the traditional banking system is silly. If it was actually possible, don't you think it would have happened already?
Blockchain technology has changed the fixed development model of traditional industries and brought people a lot of benefits. As people strengthen their consensus, more people use cryptocurrency. Blockchain may be the future trend of the banking system and financial industry. - It provides greater transparency and credibility for any content in the ledger, free from government control and interference.
- It can conduct transactions without restrictions and the cost of international transactions is low.
I think replacing for traditional banking systems to blockchain technology mainly depend on government mind, because government thinking behind of traditional banking systems blockchain technology is a threat cause it’s invisibility from any system. so if every government accept blockchain technology then it’s will be replace traditional banking systems.
I don't think so, at least not in the near future. Too much is tied to banks, such as loans. Will people be able to take out loans in cryptocurrency?
Will it be safe, because cryptocurrency is extremely volatile and in case of growth, you will have to pay much more than you took.
Will it be safe, because cryptocurrency is extremely volatile and in case of growth, you will have to pay much more than you took.
Banks wouldn't allow cryptocurrency to take over on them, because fiat economy has the stable currency movements. Though we see some good points on crypto, but we have to consider the volatility of its market which I think business owners didn't want their money to risk on this idea. Blockchain will only be useful as an asset not really be associated with traditional system of spending like on fiat.
No it can't and it won't. Blockchain is a technology. A technology cannot replace a system. All it can do is integrate with the system to make it better. So no blockchain won't replaced the traditional banking system, but the tech might be used in the banking system. If you are talking about decentralized crypto currencies being able to replace the banking system, then I doubt that's going to happen too. Might be after decades by a centralized currency.
It's true that it cannot replace cash but it's not the goal of Bitcoin or cryptocurrencies. Traditional banking I think will still be here but they may actually apply the technology like how they are interested in Defi today. The senate is already talking about these disruptive technologies in the financial system, they may not really be open to this technology but more and more people are going into crypto for the lack of opportunity. The existing system today are now seen to be not democratic.
Replace? Maybe, but unlikely. Cooperate? Hardly possible. Banks make profit majorly by creating the circulation of funds, giving loans under a certain %, and making other deals which are impossible without tracking (and conrtolling) the flow of money, otherwise the bank would be putting itself under a great risk.
Now, the idea of cryptocurrency is quite the opposite - no one will know your ID if you don't link your address to it and no one can have access to your funds. So how can these two systems cooperate?
Now, the idea of cryptocurrency is quite the opposite - no one will know your ID if you don't link your address to it and no one can have access to your funds. So how can these two systems cooperate?
I don't think so, at least not in the near future. Too much is tied to banks, such as loans. Will people be able to take out loans in cryptocurrency?
Will it be safe, because cryptocurrency is extremely volatile and in case of growth, you will have to pay much more than you took.
Will it be safe, because cryptocurrency is extremely volatile and in case of growth, you will have to pay much more than you took.
There is something you need to know my friend.
Traditional financial institutions are the most corrupt set of organizations to ever exist and do you want to know why, tell them to employ blockchain for transparency, they will ignore and wouldn't want anything that will be public, they want to do everything at their way.
Banks would actually do and perform better if and if they accept blockchain and it fundamentals but I still be believe government would be limited on how they explore most of this thing as they dislike things they can't control.
Traditional financial institutions are the most corrupt set of organizations to ever exist and do you want to know why, tell them to employ blockchain for transparency, they will ignore and wouldn't want anything that will be public, they want to do everything at their way.
Banks would actually do and perform better if and if they accept blockchain and it fundamentals but I still be believe government would be limited on how they explore most of this thing as they dislike things they can't control.
The emergence of blockchain technology has changed the development of global digital payment system business. With the impact of new cryptocurrency projects on banks and other financial institutions, many companies are forced to start making changes to their systems.
In the traditional financial system, the regulator will monitor your operations in order to maintain the integrity of the system, and the process will incur large costs and may be full of fraud. But the blockchain system gains integrity by incentivizing the best interests of the system and allowing anyone to verify it.
Blockchain and cryptocurrency are integrated into all walks of life to solve traditional solutions with safer and more efficient technologies. Although it is well known that it cannot replace cash, it may have the opportunity to replace or cooperate with traditional banking systems. Blockchain as an important innovation field of financial technology, can it replace the traditional banking system in the future?
https://www.ibtimes.com/can-these-blockchain-solutions-replace-traditional-banking-system-3259844
Actually, blockchain solutions have already started to replace traditional banking systems especially related to cheque clearance and transaction settlement between banks. I heard on one such example in Europe a couple of years back and now in India too banks are starting to use it as a system. Here is a source of the article : https://thepaypers.com/e-invoicing-supply-chain-finance/15-indian-banks-get-together-to-form-blockchain-trade-finance-consortium--1249797#:~:text=15%20Indian%20banks%20get%20together%20to%20form%20blockchain%20trade%20finance%20consortium,-Thursday%2017%20June&text=Th%20e%20banks%20involved%20include,reduce%20the%20volume%20of%20paperwork.In the traditional financial system, the regulator will monitor your operations in order to maintain the integrity of the system, and the process will incur large costs and may be full of fraud. But the blockchain system gains integrity by incentivizing the best interests of the system and allowing anyone to verify it.
Blockchain and cryptocurrency are integrated into all walks of life to solve traditional solutions with safer and more efficient technologies. Although it is well known that it cannot replace cash, it may have the opportunity to replace or cooperate with traditional banking systems. Blockchain as an important innovation field of financial technology, can it replace the traditional banking system in the future?
https://www.ibtimes.com/can-these-blockchain-solutions-replace-traditional-banking-system-3259844
This helps them in decreasing the transaction costs relating to the inter-bank settlement. Moreover, when it comes to banks and their settlements, everyone likes an environment where there is no regulator in between and no one has supreme authority, even the central bank only has access limited to the reporting requirements imposed by them.
I think bitcoin definitely changed the way people think about money. Its such a radical departure from conventional finance and banking norms. I'm surprised conspiracy theorists haven't put forward a theory of Satoshi Nakamoto being an alien from another planet. Cryptocurrencies have succeeded in ways, in building a better mousetrap. One observation that can be made about blockchain is, Satoshi Nakamoto was only a single person with limited resources and time. A team of talented individuals with funding, should in theory, be able to expand and improve on Satoshi's original venture. It is possible that had Satoshi continued to develop cryptocurrencies, he would have further expanded and improved upon its list of features and design principles.
Would prefer to focus on some attempt at future progress in finance/remittances, rather than focus on blockchain vs banks. There is still a lot of room for improvement to be made. Even banks are benefiting from and using blockchain based technology. Rather than blockchain replacing banks, they can simply adopt the technology and use it.
Would prefer to focus on some attempt at future progress in finance/remittances, rather than focus on blockchain vs banks. There is still a lot of room for improvement to be made. Even banks are benefiting from and using blockchain based technology. Rather than blockchain replacing banks, they can simply adopt the technology and use it.
Not quite yet, but it will eventually.
Whether blockchain technology will replace traditional financial services or not is a matter of political will and corporate interest. No one can guarantee that the blockchain economy will replace the existing banking system, but one thing is sure – blockchain technology will bring a new revolution to the way financial services are being used in the future.
The emergence of blockchain technology has changed the development of global digital payment system business. With the impact of new cryptocurrency projects on banks and other financial institutions, many companies are forced to start making changes to their systems.
In the traditional financial system, the regulator will monitor your operations in order to maintain the integrity of the system, and the process will incur large costs and may be full of fraud. But the blockchain system gains integrity by incentivizing the best interests of the system and allowing anyone to verify it.
Blockchain and cryptocurrency are integrated into all walks of life to solve traditional solutions with safer and more efficient technologies. Although it is well known that it cannot replace cash, it may have the opportunity to replace or cooperate with traditional banking systems. Blockchain as an important innovation field of financial technology, can it replace the traditional banking system in the future?
https://www.ibtimes.com/can-these-blockchain-solutions-replace-traditional-banking-system-3259844
The blockchain is going to be adopted by banks all over the world willingly so I do not think we are talking about replacing here but upgrading their current technology, however this is useless, they will be on control of those blockchains and they will be able to do whatever they want with it so this does not help us at all, we need bitcoin to become big and strong enough to become a competitor against those banks and even then I do not expect that bitcoin will replace the banks, it will just provide an alternative for those that want to avoid the banks on their daily lives. In the traditional financial system, the regulator will monitor your operations in order to maintain the integrity of the system, and the process will incur large costs and may be full of fraud. But the blockchain system gains integrity by incentivizing the best interests of the system and allowing anyone to verify it.
Blockchain and cryptocurrency are integrated into all walks of life to solve traditional solutions with safer and more efficient technologies. Although it is well known that it cannot replace cash, it may have the opportunity to replace or cooperate with traditional banking systems. Blockchain as an important innovation field of financial technology, can it replace the traditional banking system in the future?
https://www.ibtimes.com/can-these-blockchain-solutions-replace-traditional-banking-system-3259844
Blockchain isn't just limited to solving the trust issues revolving around traditional banking system. It is gradually gaining massive adoption in many other sectors of the world which involving transactions such as funding a gambling or trading account and despite it's global adoption it can't still replace the conventional banking system but could be used as an alternative in some cases even if not now maybe in the near future.
The emergence of blockchain technology has changed the development of global digital payment system business. With the impact of new cryptocurrency projects on banks and other financial institutions, many companies are forced to start making changes to their systems.
In the traditional financial system, the regulator will monitor your operations in order to maintain the integrity of the system, and the process will incur large costs and may be full of fraud. But the blockchain system gains integrity by incentivizing the best interests of the system and allowing anyone to verify it.
Blockchain and cryptocurrency are integrated into all walks of life to solve traditional solutions with safer and more efficient technologies. Although it is well known that it cannot replace cash, it may have the opportunity to replace or cooperate with traditional banking systems. Blockchain as an important innovation field of financial technology, can it replace the traditional banking system in the future?
https://www.ibtimes.com/can-these-blockchain-solutions-replace-traditional-banking-system-3259844
Haven't you seen a topic like this, I see it's been discussed many times...In the traditional financial system, the regulator will monitor your operations in order to maintain the integrity of the system, and the process will incur large costs and may be full of fraud. But the blockchain system gains integrity by incentivizing the best interests of the system and allowing anyone to verify it.
Blockchain and cryptocurrency are integrated into all walks of life to solve traditional solutions with safer and more efficient technologies. Although it is well known that it cannot replace cash, it may have the opportunity to replace or cooperate with traditional banking systems. Blockchain as an important innovation field of financial technology, can it replace the traditional banking system in the future?
https://www.ibtimes.com/can-these-blockchain-solutions-replace-traditional-banking-system-3259844
it is most likely that blockchain technology will shift the technology of conventional banking systems. Blockchain technology is the technology the world needs to make all transactions more transparent and open. the current banking system does not show transparency, that means we have to start adopting blockchain technology.
Blockchain has 2 categories, public blockchain and private blockchain.
Public blockchain is decentralized since anyone can view, read and participate on the network. While the private blockchain is centralized since the blockchain is only permit few people to able view, read and participate on the network. Of course Bank would use the private blockchain if they want to replace their old centralized ledger especially when they want to launch their own Digital currency. Blockchain is more fast, efficient, flexible, and cheaper, it just a matter of the technical skills/coding, so there's more advantages of using Blockhain.
Public blockchain is decentralized since anyone can view, read and participate on the network. While the private blockchain is centralized since the blockchain is only permit few people to able view, read and participate on the network. Of course Bank would use the private blockchain if they want to replace their old centralized ledger especially when they want to launch their own Digital currency. Blockchain is more fast, efficient, flexible, and cheaper, it just a matter of the technical skills/coding, so there's more advantages of using Blockhain.
Current banking system is very slow, centralized, controlled by few elite members, and it spends a lot more energy than all Bitcoin mining, but I don't see anybody from climate change propaganda bs complaining about it.
They won't allow replacing of that old dinosaur banking system until they create their own total surveillance tracking nightmare, that is why it's very important that more countries accept Bitcoin, that can't be controlled and printed to infinity like fiat or future CBDC currencies.
Using second layer solutions and sidechains with Bitcoin we can full replace corrupt banking system, but they won't go without a fight.
They won't allow replacing of that old dinosaur banking system until they create their own total surveillance tracking nightmare, that is why it's very important that more countries accept Bitcoin, that can't be controlled and printed to infinity like fiat or future CBDC currencies.
Using second layer solutions and sidechains with Bitcoin we can full replace corrupt banking system, but they won't go without a fight.
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