Ways Cryptocurrency will Revitalize Banking Industry

Ways Cryptocurrency will Revitalize Banking Industry

By Capital Markets CIO Outlook | Tuesday, July 21, 2020

Crypto banking is on the route to becoming an integral part of the financial industry due to its massive uptake. It offers services that conventional banks cannot, and guarantees more efficiency, decreased bureaucracy, transparency, and security.

Fremont, CA: The substantial popularity of blockchain technology and cryptocurrencies have sent out shockwaves across the financial markets. Cryptocurrencies have transformed the way people transact worldwide, regardless of mobile money transfer or banking transactions. Blockchain technology is now integrated into pertinent aspects of all financial transactions as it possesses those qualities which provide an enhanced overall experience.

Some of these qualities are:

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The whole concept of cryptocurrencies is based on a decentralized system, in the sense that blockchain enables users to make transactions securely and independently without needing to involve intermediaries. Unlike banking, this process does not require a sanction from the bank to make a financial transaction.

In the crypto world, no one entity is responsible for holding onto the money, and instead of a bank, the money is stored on cloud in the form of data via blockchain technology. This technology makes crypto-cash much fluid in nature and enables the users to make quick and convenient transactions from wherever and whenever they want.

Cryptocurrencies have a Finite Nature:

As banks do not issue cryptocurrencies yet, users mainly acquire them by mining through data using complex algorithmic processes. Often, an unbounded supply exists in the code of cryptocurrencies. In contrast to that, traditional currencies have a limited supply chain. The availability of fiat currencies is subjected to change as per the fiscal policies of the governments that issue them. A fixed figure cannot be put on cryptocurrencies, as its finite nature will increase demand, in turn driving up its value. This very nature of finite supply of cryptocurrencies is what makes them inherently deflationary.

Ease of Use

As technology improves, users want their financial transactions to be free, easy, and fast. One change that cryptocurrencies will undoubtedly bring about in banking processes is the convenience. It will get rid of the chunk wallet filled with wads of cash and credit cards, and also excuse the user from maintaining and tracking transactions and bank balances.

Cryptocurrencies offer the users a credible store of value without being subjected to loss, theft, and other financial crashes.

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