Due to the fact that banking structures have existed for several centuries, it is not surprising that even despite the global crises, banks continue to exist and operate successfully. However, with the advent of cryptocurrencies and, more importantly, the blockchain system that ensures their successful functioning, in the future, banks may simply disappear, or more likely, undergo a serious transformation. All thanks to the blockchain too.
There are a number of reasons why this can happen:
First of all, the blockchain is decentralized and does not depend on the legal and regulatory norms of a particular country. Banks are exactly the opposite, it is government structures that usually determine the policy and strategy of banks' functioning.
The cost of a bank transfer to another country is not fixed, and can cost a few percent or more of the transfer amount and may take several days. Moreover, if the bank does not like the source of the funds, the account can simply be blocked for an unspecified period. With blockchain and cryptocurrencies, everything is easier - you transfer funds to another wallet, at a fixed price that does not depend on the amount, and as soon as the funds are credited, you can immediately use them. It is also worthy of mention that the transfer amount can be equivalent to both USD 100 and USD 1,000,000.
Granting loans. Banks are the only possible option for obtaining a loan for a large amount. At the same time, blockchain allows you to borrow from an unlimited number of users, or lend your funds. And many internal technologies - such as consensus algorithms, or smart contracts - ensure the reliability and regularity of payments, making it almost impossible to bypass the system.
All the suggests mentioned above speaks that blockchain with cryptocurrencies can become a more relevant and modern alternative for banks. However, there are already known examples when banks begin to implement blockchain to improve their work, or even trying to integrate cryptocurrencies, synchronizing them with their current activities. So it is quite possible that we will witness the emergence of a completely new concept of financial settlements and the global transformation of the entire world banking system.
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