Say cryptocurrencies take off and people hold more of their savings in crypto instead of bank deposits. Currently everyone's savings is in bank accounts which is being lent out to businesses and hence stimulating the economy. What is going to happen if bank deposits drastically decrease?
On the one hand, maybe it will not have much effect on the economy because since lending will become tighter, businesses will need to justify the loans more (vs. if there is easy access to money) and will create stronger proposals. On the other hand, could it have a detrimental effect on the economy?
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This looks like a discussion on whether banks or crypto are better at stimulating economies, empowering small businesses and creating jobs.
These days, I think credit cards actually provide more stimulus than bank loans. Crypto has historically been weak in terms of the loan industry. Collateral based loans have been difficult to come by in crypto and verification or other methods of enforcing loan repayment have never worked well.
On the intangible side are the numerous small businesses and industries which have popped up as a result of crypto's introduction. The benefits provided by crypto liquidity providing electronic merchant transactions to those living in poverty who could not afford the minimum balance of a bank account. There are a large number of intangible benefits provided by crypto which could easily overshadow any proposed benefits provided by banks or credit card companies.
In terms of real world application, I would say that bitcoin and crypto have done more to empower venezuelans than banks have. If that precedent holds true to the rest of the world, then bitcoin and crypto definitely create more jobs, provide more economic stimulus and benefit to people of the world than banks or private sector industry.