Quote from: rickadone on December 13, 2018, 12:43:02 PM

Quote from: iTradeBit on December 08, 2018, 04:52:26 PM

Friends, I have recently read an article on the future of the banking system thanks to proliferation of smart contracts, some countries are already preparing cryptobanking projects, and this should happen the next few years. Actually the conclusion of the article was that the free financial market - cryptocurrency is the future for the financial system. Do you agree? Is it so positive, or will the state regulation complicate things, but in my opinion it is inevitable for the banking sector, in your opinion?

There are three phases we may need to go through before having society where cryptobanks are dominating. These phases are being assumed to happen based on how a new concept will be accepted and will be incorporated where security and convince are most valuable criteria.

In the first phase, traditional banks will adopt blockchain technology and few cryptos but customers will not be allowed to protected by decentralization's concepts but you may enjoy a part of crypto banking along with our current banking-centralized-system. I guess this is purely an evaluation just due to the emerging technology, blockchain. Both banking system and customers will realize the benefits of having a blockchain based system for their financial needs.

In second phase, people start to realize having a decentralized system for their financial needs which may lead to have non-regulated crypto based banking sector still you may need to depend on third party but your privacy and being anonymous kind of features will be provided. Your employer may prefer to pay in crypto using these banks and you pay taxes only for availing services and buying good but NOT at all for your income.

In third phase, people start realizing why they need a banking services when their wallet itself having all the functionalities of a bank. Now, you may not need to pay taxes even for services and goods as taxes are optional only if you prefer to declare your financial activities.

Yes, crypto banks are the future but it would take more time to function as a most commonly used system.

Really liked this scenario. However, it is more likely we will see more regulations and the system won't allow us to use totally decentralized and anonymous systems because of the taxation concerns of the governments. Even though people start realizing they don't really need conventional banking system, governments will push to keep centralized systems.