Skandiabanken – Norway’s largest online bank has recently offered its customers an option to hold cryptocurrency, Bank Of America filed over 20 blockchain patent, and the crypto blockchain Ripple – not XRP – will be adopted by dozens of banks.
This wave of banks offering cryptocurrency services will continue on forward and could be formally adopted by central banks like the Bank Of England, Central Bank of Canada, and the Federal Reserve. Central banks’ attitudes towards cryptocurrency drastically changed in a timespan of 5 years. Online banking has increased by over 80% and 91% of Norway citizens use online banking on a daily basis. It has been estimated that by the next 5 years, physical banking will be less popular than online banking. Some bank institutions like Goldman Sachs and Region are currently trying to update their online servers to meet the greater demand.
This has lead to a different consumer mindset of seeing cryptocurrency less of a ‘pyramid scheme’ and more of a reliable asset. People and banks have been surveyed if they think Bitcoin or gold will be worth more in the next 10 years. Bitcoin beats gold 10 to 1 with people speculating a 1000% increase over Bitcoin in comparison to gold. In addition, the number of online bankers asking their banks for cryptocurrency has increased over the years.
Despite that, banks have realized that they’re far behind on the cryptocurrency revolution – or evolution depending on your outlook – and they’re way too late to jump in and began selling it. This is mainly in part of Bitcoin’s established reputation and there are many different options to buy it. Consumers can use Coinbase, Poloniex, Kraken, Gdax, and much more to buy Bitcoin so why would you use a bank and get taxed for it? This is the obstacle many banks and central banks are facing, and the reason they are hoping the Bitcoin fad is a bubble. Instead of adopting Bitcoin, central banks like the Federal Reserve – United States central bank – are planning on creating their own cryptocurrency. This is against cryptocurrency collector’s philosophy of a non-bank controlled currency. If the Federal Reserve doesn’t create their own blockchain technology, Ripple will be the first choice due to its bank friendly blockchain tech.
Cryptocurrency enthusiasts like Run Gunn – and many others – have said cryptocurrency is ‘finance getting its own internet’, however, with banks adoption, people fear not much economically is going to change. With banks creating their own cryptocurrency, the basics of what people consider broken economics isn’t going to change it will just be virtual. People love Bitcoin because of the revolutionary benefits it can create like cheaper transaction fees, one currency for the world, and a reliable investment. People fear that with bank adoption they’re just going to create something similar to paper currency but it’s going to be online. Banks interest in cryptocurrency is at an all-time-high and they continue buying it up. Either the banks intend to use cryptocurrency for better or for worse, central bank adoption is going to happen in the next 5 years whether we like it or not.
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