Everyone have their own idea about the future of Bitcoin. Some of them have already made their thoughts known to the public while speaking at public gatherings or during interviews. The Chief of International Monetary Fund, Christine Legarde speaking at one of the conference has recently mentioned something similar in favor of bitcoin.
Christine Legarde was recently speaking at a conference in New York where she mentioned that the banks can breathe easy without worrying about bitcoins stealing their businesses. Her comments come at the time when there is a lot of apprehension about bitcoin eating into the banking sector’s profits and that it can beat the outdated banking software and financial technology can be rendered obsolete by blockchain technology.
Even though the underlying principle behind bitcoin is exactly the same, to eliminate banks and governmental organizations as trusted third parties, the digital currency tech industry is willing to collaborate to create similar applications for main stream banking and finance as well. Christine Legarde focuses on the pseudonymous and anonymous nature of bitcoin. She stresses that as long as the bitcoin community keeps abusing and taking advantage of these qualities of bitcoin, banks can breathe easy.
While the idea of having a decentralized network is not bad, majority of people would like to have a single point of contact or some tangible way of interacting with the trusted party. In case of blockchain, it is a vast network of individuals who act as a trusted party but there is no way one can have a face to face or even an online interaction with the people who are responsible for executing their transactions over the blockchain. This makes the public put more trust in the banks than blockchain.
The banks are also preparing themselves to compete with the growing popularity of bitcoin by incorporating blockchain technology into their regular operations. By doing so, they will be able to reduce the transactions costs involved in fund transfer and even reduce the time taken for fund transfers drastically.
The article was first reported on Coindesk