Could We See Steem-Based Tokens Replace Banks?

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I came across an interesting article earlier today that really gave me a different perspective on cryptocurrency and its potential.

For a long time, I felt the bankers were powerless against cryptocurrency. This is why they attack it so fiercely. Whatever tricks they pull from their playbook, it is impossible for them to negate the threat.

There is, however, something even more threatening to them, at least in the short term.

We are aware of Facebook's intention to create a stablecoin. They call it Globalcoin and is designed with the intention to act as a payment system on the Facebook platform. Alibaba and Apple also have payment systems for their ecosystems.

What this means is that these tech platforms are taking on the banks. In fact, they are not competing with the banks but, rather, becoming banks. They are effectively creating a payment system while providing people with the ability to send, receive, and store the tokens. If they add in the ability to lend on the platform, presto, you have a bank.

A deeper explanation can be found in this article.

https://bitcoinist.com/apple-facebook-replacing-banks-becoming-them/

There is often talk of Bitcoin replacing the banking system. This is an interesting twist because what Bitcoin etal could replace is not what is being used today. If we do see these mega-tech platforms provide banking services themselves, the existing system could be in for a collapse. This would mean that people turned to alternate methods rather than the traditional banking system.

This is not a concept that is outrageous. In the United States, more than half the mortgages originate outside the banking system. Termed "shadow banks", these institutions accounted for 54% of the mortgages in 2017.

https://wolfstreet.com/2019/02/27/shadow-banks-take-on-largest-mortgage-risks-federal-housing-administration-fha-on-the-hook/

This shows how a large percentage of Americans are already accustomed to using alternate services. It is a situation that bodes well for the Facebook, Apple, and other technology companies that want to enter this market. Since they already have a large ecosystem, offering financial services, especially when there is a currency to operate within, is a no brainer.

What is the impact upon the banking system?

It is interesting to see how simple it is to create this. To start, an ecosystem is required. Secondly, one needs a currency which to transact in. Obviously, the larger the ecosystem, the greater the likelihood that people will embrace the currency.

The banking system had the USD to use. This was something that worked well for decades since everyone was paid in dollars (in the United States). Hence, it was a great currency to operate in.

On Steem, we have an ecosystem forming. Certainly, we are not rivaling the companies I just mentioned. However, there are all kinds of banks. We have the global behemoths like JPMorgan and Goldman along with local community banks.

Could we see something similar forming in the world of crypto? The Facebooks and Apples can create their own centralized, controlled currencies that operate upon their platform. For the time being, because of their size, those will dominate. The rest of the crypto market will expand as the platforms are developed. Couple this with data mining, security breaches, and business models that are locked in by Wall Street, and we could see a move away from them over time.

Nevertheless, for those who are operating on Steem, wallets are filled with tokens earned on here. At the same time, people have a means of an "income" through their activities. The "Upvote" economy is where one can earn money. This is the foundation of an economic system.

Once people have the resources, they have the ability to conduct many types of financial services. Those who are on here could prefer to use "in-house" solutions for their outside financial needs. Instead of using the Facebook "bank", one can opt to operate in STEEM (or a SMT/SCOT).

This could stimulate investment for those seeking a return. It also affords people who earn and hold to receive a return, thus compounding their activity.

The point is that money could well be plentiful in the future and Steem has the ability to develop into a system where all kinds of services are provided. As the ecosystem expands, people will be able to turn away incrementally from fiat. Thus, over time, we could see the development of a financial industry catering to all the needs of those who are on here.

We really are looking at untold potential with these ecosystems. What will be created over the next half decade is going to be amazing. We are only on the first wave of development. With newer technologies, the tendency is to inititally replace what is known. It is the second and third levels where completely new ideas begin to flourish.

Could we someday see Steem have its own "banking" system? If the major tech platforms are able to pull it off, we might be able to duplicate it.

Just like towns have their own community banks, Steem could have its own version of that.