Bitcoin Posing Silent Threat To Banking Industry Across World?
Bitcoin, a type of digital currency, is an innovation in Internet space, that’s currently posing a silent threat to the Banking industry across the world. Banks are aware of the consequences Bitcoin’s popularity can lead to, and they are taking on this challenge in their own way. It has already forced them to bring about technology changes (with Blockchain technology) within themselves.
So far the rise and growth of Bitcoins has been slow moving because of the dull adoption rate. However, by emerging as a replacement currency in the long run, it can potentially shake the foundation of the Banking industry. Not surprising, the Bitcoin has received only unwelcoming reactions from the Bankers.
Bitcoins make the economy free and open. A user has the choice of how they want to use their money without involving any intermediary in any transaction. For instance, sending money to anyone far abroad can be done in within 60 minutes without paying any extra third party charges. Now who would want to go to a bank to do the same, if this is available.
Open Bazaar is one such form of free market platform, similar to Bitcoins and also uses only Bitcoin as currency. Open Bazaar too is completely democratic and open, allowing buyers and sellers to determine the price of a commodity to be sold. Here too there is no role of any intermediary, just like the case of Bitcoin.
Bankers realize the need to embrace technology to take on digital challenges and threats. They understand they can’t get into the Bitcoin space as it doesn’t fit the bill. Bitcoin’s decentralized model won’t work with Banks. So they worked out of a way of their own with adopting Blockchain technology that will help them up their infrastructure.
Also in the meanwhile, Banks are pulling all strings to make sure Bitcoin doesn’t get the support from existing financial framework. Till it becomes popular and the choice of banking, Bitcoin might need support from the existing system. Bankers will pull the plug whatever its takes. They are actively lobbying to Government and using all of their power and influence to prevent any support going to Bitcoins and the likes.