If cryptocurrencies will be the basic mode of exchange in the future, what will happen to the banks then?
I think the only effect is that cryptocurrencies will just be more oftenly used and that's it. Banks are impossible to vanish just because cryptos are being more patriotized given that banks are the strongest establishment under the government and is also supported by it unlike cryptos that are mostly decentralized. Also there are people who prefer fiat over cryptos due to the market volatility which is a risk so surely banks will still be used. 
Topic: What will happen to the banks if people uses cryptocurrencies more than fiat? - page 4. (Read 1233 times)
April 03, 2018, 10:19:56 AM
April 03, 2018, 10:10:48 AM
The high cost of using fiat money increases the demand for digital money, people use digital cryptographic currency, and bypass Banks to trade directly!
Banks reduce business profits! National seigniorage is reduced! It will affect the financial order of the country!
Banks reduce business profits! National seigniorage is reduced! It will affect the financial order of the country!
April 03, 2018, 10:07:53 AM
If cryptocurrencies will be the basic mode of exchange in the future, what will happen to the banks then?
The banks will need to adapt and change their working to adopt crypto, I think they really should be doing this now, the early birds will catch the worm. 
April 03, 2018, 10:01:14 AM
If cryptocurrencies will be the basic mode of exchange in the future, what will happen to the banks then?
Definitely they will fail if they will stand to be pirely a fiat medium transaction entity, I think this will lead them to bankruptcy since people is now open with the potentials that a cruptocurrwncy like Bitcoin can do, and I think this will make them realized the major advantage of this currency, if Banks didnt acquire with this I think time will come that the people who will invest to their company will be lesser until it will be gone.
April 03, 2018, 09:32:06 AM
Though this may not be applicable on a very fast rate from now because of it yet to be adopted in lots of countries around the world. As we are now much expecting this to happen, I don't think by then, Fiat money shall be totally put out of no use, because it is the legal tender understood by all in the society literates and illiterates. But it is not doubtful that Cryptocurrencies usages shall in the future be accepted for uses.
April 03, 2018, 09:06:21 AM
If everyone begins using cryptocurrency, infrastructure would need to be developed with that in mind. It might not take too long for cash to become incompatible. At this point, it remains to be seen whether established financial institutions could pivot to that new status quo in time.At the highest level, governments will be hit hard, as they will no longer exercise the same level of control over the country’s currency. The idea of printing more money has been raised time and time again in response to financial turmoil, but that option disappears once currency has to be mined.
April 03, 2018, 07:23:19 AM
It took centuries of trial and error for most countries to come around to their modern systems of money. Central banks today monopolise national currencies, and they steer availability mainly through commercial banks that, as economists often put it, 'create money out of thin air'. That is, centrals expand or contract supply by lending to and imposing reserve requirements on commercial banks. I think cryptocurrencies are going to end up as an alternative option like several categories. It will end up existing alongside traditional forms of old banking.
On point! Fiat money will always have use, especially for the poor, because it is the easiest to acquire and and it is not complicated to understand and use. Unlike for virtual currencies which needs internet connection, a decent device and technical knowledge of the user. It will just like be paypal in a sense. But I don't deny that bitcoin is gaining ground in terms of value and usability. It may or may not be the main currency, but fiat remains as long as there is a demand and of course, banks.
Banks will try to adopt to the changes of the financial climate to survive. Those who are not willing to adopt are those that dies. ex, Nokia and Blackberry. In fact, they already tried to adopt. Example, Ripple.
Let it happen banks will be banks they will going to change upon situation on what most people were liking that which can take advantage.
April 03, 2018, 06:41:28 AM
Maybe if the cryptocurrency is legalized by the government in the future, banks will create their own digital currency so they will continue. Perhaps before that time banks have also created new strategies so they would not be lost in the market due to the different cryptocurrency that appearing today. Fiat money it is simply a paper printed by the govenment and they made it a legal money . Anytime they want to replace cryptocurrency fiat money will lose value immediately.
April 02, 2018, 04:20:49 PM
It took centuries of trial and error for most countries to come around to their modern systems of money. Central banks today monopolise national currencies, and they steer availability mainly through commercial banks that, as economists often put it, 'create money out of thin air'. That is, centrals expand or contract supply by lending to and imposing reserve requirements on commercial banks. I think cryptocurrencies are going to end up as an alternative option like several categories. It will end up existing alongside traditional forms of old banking.
On point! Fiat money will always have use, especially for the poor, because it is the easiest to acquire and and it is not complicated to understand and use. Unlike for virtual currencies which needs internet connection, a decent device and technical knowledge of the user. It will just like be paypal in a sense. But I don't deny that bitcoin is gaining ground in terms of value and usability. It may or may not be the main currency, but fiat remains as long as there is a demand and of course, banks.
Banks will try to adopt to the changes of the financial climate to survive. Those who are not willing to adopt are those that dies. ex, Nokia and Blackberry. In fact, they already tried to adopt. Example, Ripple.
April 01, 2018, 02:50:16 PM
It took centuries of trial and error for most countries to come around to their modern systems of money. Central banks today monopolise national currencies, and they steer availability mainly through commercial banks that, as economists often put it, 'create money out of thin air'. That is, centrals expand or contract supply by lending to and imposing reserve requirements on commercial banks. I think cryptocurrencies are going to end up as an alternative option like several categories. It will end up existing alongside traditional forms of old banking.
March 31, 2018, 03:39:31 AM
If cryptocurrencies will be the basic mode of exchange in the future, what will happen to the banks then?
I think if that it will easy to us to use bitcoin as a payment everywhere and save our money in bitcoin wallet but this thing will happen for the future not now. About the bank I think we can always use it too mostly some people not interested to bitcoin and don't have enought ability to use bitcoin so bank is the other choice for them. 
March 10, 2018, 01:35:40 AM
If cryptocurrencies will be the basic mode of exchange in the future, what will happen to the banks then?
I think it would make a great change if ever bitcoin starts on being patronized by people more than fiat. We all know how bitcoin works in real life, it provides convenience and easier transaction everywhere you are. Handing over a physical money may not be practiced anymore in the future but still no one really knows what will happen afterwards. Let us just keep on supporting both for the greater good of everyone. March 10, 2018, 01:01:26 AM
If people uses cryptocurrency more than fiat? Actually this is not possible, but if it is, maybe it will took a long time to happen. But if this will happen, bank will be actually closed, because Cryptocurrency is decentralized, it doesn't need any Government banks. Banks is the intermediary, it is a middle man in every person, bank is working for people, if people dont used fiat currency anymore, bank doesn't exist anymore.
March 09, 2018, 04:40:12 AM
If cryptocurrencies will be the basic mode of exchange in the future, what will happen to the banks then?
Dude that’s your business, even if you want start making use of gold and silver, you will still need fiat to purchase that gold and silver. No matter what you do, you can’t end the use of fiat, cause it’s the main currency. And if everyone starts making use of Bitcoin, fiat is still there and when you need Bitcoin you will need fiat to buy it. Simple. 
March 09, 2018, 03:30:24 AM
We never know what will happen to currency during that time, if the bank and the government adapt and absorb this crypto currency kind of system I'm sure there will be a lot of changes and adjustment to make and surely it has great effect in economy and society all over the world.
March 08, 2018, 06:29:05 AM
I don't think banks will allow this to happen they will find a way in every means to not let crypto took over their place or maybe if this happens it will take for too long no one knows when we just have to expect the unexpected changes may come along the way and I guess if that time comes banks should do something better which people would decide to still use fiat over crypto.
March 08, 2018, 06:03:32 AM
I think hell will break loose if people try setting up outside of the establishment. I think in order for this to be accepted and main stream adoption to happen it will need to accept regulation.
As of the moment, it is really difficult to assess what changes would occur when bitcoin becomes more of use than the fiat money. I'm sure that prices of goods and services will definitely change sharply due to the people's less patronization of the fiat money over bitcoin or other cryptocurrencies. March 07, 2018, 11:29:32 AM
I think hell will break loose if people try setting up outside of the establishment. I think in order for this to be accepted and main stream adoption to happen it will need to accept regulation.
As of the moment, it is really difficult to assess what changes would occur when bitcoin becomes more of use than the fiat money. I'm sure that prices of goods and services will definitely change sharply due to the people's less patronization of the fiat money over bitcoin or other cryptocurrencies.At this moment in time that bitcoin is already considered a currency, it really is a big rivalry with the usual physical money (fiat) since it is non taxable. It is true that when one door closes another one opens. Sadly, it will happen to banks because we all know that banks have less profit and interest. And they are using people’s money with very less return. Its time for them to get scared with the trouble that they are about to face when people start to withdraw their savings and use crypto.
March 07, 2018, 04:03:59 AM
I think hell will break loose if people try setting up outside of the establishment. I think in order for this to be accepted and main stream adoption to happen it will need to accept regulation.
As of the moment, it is really difficult to assess what changes would occur when bitcoin becomes more of use than the fiat money. I'm sure that prices of goods and services will definitely change sharply due to the people's less patronization of the fiat money over bitcoin or other cryptocurrencies. March 06, 2018, 04:06:53 AM
the bank will change too.
They don't have choice but to embrace the changes and they have to adopt cryptocurrencies too.They will change it into digital platform (digital bank) it actually happening right now that there is now a digital bank for a crypto holder who want to deposit their cryptocurrency.
It's happening but with digital fiat currency not with cryptocurrencies as for now they are still looking at it on the negative way because they don't fully trust it because its decentralized.I find it really difficult to imagine how a crypto bank works. I mean, it should be safe and secured which means our deposits are insured too. Is it really possible to insure crypto funds given the high volatility?
Jump to: