Quote from: jotamarm on June 17, 2020, 07:01:58 AM

Quote from: toGETher_platform on June 17, 2020, 06:57:36 AM

Quote from: Ditex on June 16, 2020, 12:59:28 PM

Cryptocurrencies are a global threat to banks

After a few years States all around the world have started accepting cryptocurrencies. Economists at the Federal reserve Bank of Philadelphia believe that the formation of sovereign cryptocurrencies under the authority of Central banks turns to be a threat to the entire banking system. Thus, the function of a commercial Bank as an intermediary will be eliminated.

If the Central Bank creates centralized cryptocurrencies, it will become not just arbitrators and regulators, but the real players within the field. The need for an intermediary to distribute financial flows will vanish, since the digital currency will immediately be issued to the account of an individual or legal entity in a reliable blockchain system that is protected from fraud.

Also, given the current trends with negative interest rates, a potential investor may refuse to invest money in a Bank if there is a reliable alternative.

According to researchers from NBER and the Reserve Bank of Philadelphia, this will lead to fatal consequences for banks.

Everything is much more interesting. In fact, even central banks will no longer be needed. Like regional ones, central banks are intermediaries useless for cryptocurrencies. Therefore, right now, countrys are trying to convince people otherwise. They inspire citizens with the need for banks and come up with fakes for this (state-owned centralized cryptocurrencies). This is just a substitution of concepts. Blockchain is one of the most advanced distribution systems. Blockchain is the bank. Others are not needed.

Maybe the banking system is still needed? Who will monitor the viability of the financial system?

The meaning and unique feature of cryptocurrencies is not limited to the ability to get a database that cannot be faked. It is also a way to exclude from the financial system the greatest evils of our time. I am talking about the human factor. Cryptocurrencies do not need banks. Otherwise, cryptocurrencies themselves lose all meaning.

In addition, speaking of blockchain as a database that cannot be faked, there are no guarantees that state currency blockchains will meet these requirements. After all, the banks controlled by the rich will be in charge of everything.