The relationship between banks and cryptocurrencies is very strange. These two are dependent on each other in order to grow and develop, sooner or later this relationship will be revealed and become practical. However, currently banks are seemingly not paying attention to cryptocurrencies, and in order to establish an identity of themselves, cryptocurrencies are trying to show themselves separate and needless from banks. The fact is that there is a wonderful capacity of creating a bond between these two. According to the report by Forbes website, about 5 billion people in the world have smartphones. In these conditions, using cryptocurrencies to make payments with cryptocurrencies is very simple and acceptable. If banks collaborate with cryptocurrencies, it will lead to different transactions with the most speed, simplicity, and clarity.
Banks and New Technologies
As the crypto world ever grows, banks cannot keep ignoring this new technology. Now it’s the time for banks to determine where exactly they stand regarding cryptocurrencies. Banks’ unwillingness to collaborate in the cryptocurrency space seems rather logical. Different cryptocurrencies like Bitcoin and the like have very severer turbulences, and thus banks cannot heavily depend on them. Another worry that banks have toward collaborating with the crypto world is the issue of security. The existence of a decentralized system makes it possible for scams to take place. Moreover, so banks cannot really trust this new world.
Banks Are Worried about the Development of Cryptocurrencies
Cryptocurrencies have entered the competition world of banks in an intangible way and have attracted the attention of many audacious investors who are interested in trying new ways. It was this very attention that made the price of Bitcoin to soar to $19,000 in 2017. The existence of Blockchain technology and the decentralization that is inherent in it enables customers and users to do their operations without the need for an overseeing organization or a certain country, and this is a serious threat to large financial institutes and banks.
The Solution to Merge Banks and Cryptocurrencies
Countries like England intend to enter new venues of economic ventures by regulating the crypto world. England wants to establish itself as one of the first and most important stations in the world in the field of cryptocurrencies, by regulating Blockchain and different cryptocurrencies. London becoming a pioneer in using cryptocurrencies can be regarded as a great success for England and Europe. This plan will only work if the security of cryptocurrencies is provided and banks can give services to the customer based on this new infrastructure by being in control and having command.
Final Points
Experts believe that in the near future, there will be a relationship between banks and cryptocurrencies which will benefit both. Cryptocurrencies have the problem of security and building trust among the public, and banks cannot stand in the way of their attractions and the possibilities they provide for the users. Therefore, a reciprocal relationship in the near future can help solve all problems.
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