One source appears to be suggesting that cryptocurrencies, by themselves, don’t have a chance of survival, and that if they’re going to last any longer, they will need banks to do it.
Banks and Crypto: A Single Entity?
Already, we’ve witnessed some huge jumps forward in the “cold war” between banks and cryptocurrency. Much like the United States and Russia did between the 1940s and the 1980s, both entities are trying to outdo the other, and show the world why they are essential and why they are more capable than their counterparts. In the end, however, both Russia and the U.S. came to terms with each other, and by the early 90s, joined hands to work on several conjoined projects.
This seems to be the same route that both banks and cryptocurrencies are taking. After several years of fighting and going back and forth bickering, both have moved forward into conjoined plans of sorts. For example, several banks have already begun initiating their own digital currencies (CBDCs – or central bank digital currencies – as they’re called), while earlier in the month, it was announced that banks could begin offering crypto custody services to their customers, a massive leap forward in the fight to take crypto mainstream.
All this is fantastic. Two entities working together and learning from each other to better the financial space. This is exactly what the world needs if it’s going to move ahead. However, the idea that crypto doesn’t exist anymore without banks is a bit of a scary thought for several reasons.
The source in question appears to think that in the future, all standalone cryptocurrencies (i.e. bitcoin, Ethereum, Ripple, etc.) will die off, and the future of money lies only in CBDCs. This is a problem in that it will go against everything cryptocurrency has stood for. While CBDCs are indeed digital currencies, they are mere representations of fiat currencies that already exist, which means they are national currencies that the banks issuing them will control, and this is a problem for those that don’t have the credit, job histories or other elements that banks consider necessary when shelling out specific tools, products and services.
People Won’t Be as Independent
Cryptocurrency is designed to give people a chance to do their own banking. A chance to take over their financial futures and assert their monetary independence. Once all crypto becomes bank-issued, we have a problem in that they will likely take on all the bank’s directives. In the “old days,” it used to be that one could simply own a digital wallet and that was all that was necessary to begin trading.
However, if banks take over the crypto sector, you can expect a lot of the same barriers you might encounter when applying for a checking or savings account to be in place should you ever need access to the bank’s form of bitcoin.