Banks are among the most controversial issues around us. Like all businesses, banks exist to make money, they are ingenious in it. The fact that they are doing this using the money that we hardly earn is a sensitive point. Most people view conventional banks as malicious, and we blame them quickly on economic problems. With the development of financial technology from access to the blockbuster and encoded currencies, and imposing itself in the financial sector, the question arises as to whether we will still need banks in the future of encrypted currencies.
Why do banks exist? Will we need it in the future of encrypted currencies?
Despite all this, let's admit something: living without a bank account is difficult, constrained and possibly dangerous. Banks have been established to provide the services we need (or believe we need). In our society there is a hypothesis that every adult has a bank account.
Banks are not malicious, nor are they perfect. We need their services because we need the money and money management needs. Like any sector, the banking sector has advantages and disadvantages.
This does not mean that banks must remain in their traditional form. Yes, we need a safe way to store and transfer funds, save them for the future or invest them. However, financial services must evolve and keep up with the current pace of modernization.
No doubt our ancestors wanted their banks to be reliable and familiar. But in our time, flexibility and transparency have become priorities. We want to know where our money is and how it is used. We want, or rather hope, everything to be fast and cheap.
Throughout history, banks have changed with the change of society. Adapted to new technologies, laws and directions. But in recent years it has not kept up with the pace of change.
To find out why they exist on top of the list, let's take a look at the history of banks.
History of banks
It is difficult to determine exactly when the first banks appeared, perhaps older than the currency. Texts dating from about 4000 years refer to laws regulating financial services. This is an indication that banks were important enough to need regulation.
Services varied across the world. In 2000 BC, the Babylonians deposited gold in the temples for a fee, to lend it to other people with interest. The temples have served as banks in many parts of the world for centuries.
The Romans began to move away from the use of the temples in 352 BC and created the first simple public bank. Roman banks were very similar to the ones we use today. But it did not last long. With the collapse of the empire, the banks disappeared from Europe until the Middle Ages.
In the twelfth century, the Jewish people of Italy began offering grain as loans. Farmers can borrow grain and pay it to lenders after harvest. Banks soon emerged with their lucrative and useful advantage. Where the first national bank opened its doors in Venice in 1157. This first bank failed a century later.
Our modern banking system was founded in the 17th century. If you come back 300 years back, you may find the conventional banks. Which accept deposits, transfer funds, provide loans, and follow strict government laws.
The banking structure has not changed much since then. There are new products, different laws, better technology and so on. But banks still meet the same two main needs:Provide us with a safe place to store our money.Allow us to borrow money and repay it later.
After all, this remains the question.
Following the 2009 bailout, banks have become a target for innovators and strangers. It is undeniable that we still need banking services. Unless there is a fundamental change in human nature, we will always need a way to store our money and a way to borrow more. But traditional banks are not necessarily here to stay.
Until recently, we did not have a good alternative to conventional banks. However, encrypted currencies now offer a way to manage our money without centralized control.
Back in the 1990s, Bill Gates said we needed banking, not banks. He was right. In the end it was a fact. And was the reason why Wirex launched an advanced banking platform for the encrypted currency. You will be able to benefit from access to these vital daily services without many of the problems posed by conventional banks.
Through an encrypted bank account, you will meet the advantages of both worlds: Charter, Transparency and Flexibility.