For years, big banks played an important role in global capitalism. They have been the gatekeepers of national currencies flowing between central banks and the general public. And they have been collecting hefty fees for this role – fees that pay the salaries and bonuses of their employees and the dividends of their stockholders.
In recent years, big banks have played another role — the gatekeepers of money flowing between national currencies and Bitcoin.
That’s why big banks have the power to make or break Bitcoin. Which action will they take? The answer depends on whether or not big banks develop their own blockchain, and whether Bitcoin will be used as a substitute or as a supplement to national currencies.
Some cryptocurrency experts think that big banks cannot stop Bitcoin even if they develop their own blockchain. Joe Onyero, C.E.O. & Founder of Bebuzee, is one of them.
“Big banks cannot break Bitcoin, even if they create their own blockchain, which I suppose would be centralized and that goes against the principles of blockchain,” says Onyero. “Blockchain is seen as a technology revolution because it is decentralized. That’s why banks have no choice but to adopt Bitcoin. And that can make the digital currency, as it will open the way for a broad acceptance.“
“I would say banks will make Bitcoin if they choose to adapt, because this will pave the way for a wider recognition of Bitcoin.”
This doesn’t mean that Bitcoin will replace fiat money. “Crypto is not going to replace fiat money, fiat will be used for some things, while Crypto for others, and more people will likely bank with whoever makes this easiest,” continues Onyero. “I think that for banks it is more frightening to ignore cryptocurrencies and face being left behind.”
Kelly Tyler, Chief Commercial Officer at A7 Core, CEO of A7 Core, which is raising capital via an ICO to move coupons to a blockchain, agrees that banks cannot stop Bitcoin. “Change is coming,” says Tyler. “I think banks can feel it. Some of them would like to stop it, but it is like trying to stop the mounting waves of the ocean.”
That’s why they should adopt it sooner rather than later. “The sooner banks adapt and adopt some form of blockchain technology the more relevant they will remain,” adds Tyler.
Reginald Ringgold ,Founder of BlockVest DEX, sees Bitcoin helping big banks to expand their businesses. “Bitcoin has established partnerships with fintech firms to develop the applications of blockchains in capital markets,” says Ringgold. “Blockchains, used in conjunction with self-executing smart contracts, present particularly compelling opportunities in derivatives markets, which are typically beset by numerous intermediaries such as the NYSE or the CME.“
That could explain why big banks have been warming up to Bitcoin and other major cryptocurrencies, as discussed in a previous piece here.