Useless, unsafe and dirty, those are the words used by several traditional banks criticizing bitcoin and other type cryptocurrencies. They fear that cryptocurrencies are unstable financial instruments. They feel digital currencies are existential threats to the central banks.
But, the strong supporters of cryptocurrency claim bitcoin is developed as an alternative to the current financial systems. The decentralised currency eliminates the need of central bankers or any kind of financial institutions who oversees our transactions.
With rising interest from government, businesses and other institutions, there has been a huge boost for cryptocurrency development. With the exponential rise, banks are still wondering how to counter the value backed digital assets.
Though our application knowledge is still in a nascent stage, many watchful eyes in the finance sector fear when the bubble is going to pop.
In this article, you will learn about the various benefits of cryptocurrency in the banking ecosystem.
Eliminating issues of the traditional banks
No need of Central Bank or Financial Institutions
Low-Cost Transaction Facility
Easy to Use
Safe Investment Option
Let’s see each on in detail
1. Eliminating issues of the traditional banks
With technological advancement, banking has become more convenient, but at the same time we cannot rule out the vulnerability it possesses. Central banks are considered potential hacking spots. Not only that, there are other governance and compliance issues.
2. No need of Central Bank
This decentralised system makes your transaction secure and independent of central authority. In this mechanism, no institution holds your money. Instead, it is stored in a cloud via blockchain technology.
3. Low-Cost Transaction Facility:
Unlike traditional banks, cryptocurrencies are low cost or most of the time zero cost for the transaction process.
4. Easy to use and Safe Investment:
One of the key things in crypto transactions are faster, free and easier transactions. And, users can stay anonymous during investment.
It is pretty clear that cryptocurrencies are changing the banking industry, therefore, it is inevitable for traditional banks to adapt to emerging technology. If not, technology will outgrow the current system.
