Considering how bitcoin might shape the future of finance, it’s potentially impact on traditional banking systems and regulatory challenges it’s may face
Bitcoin was created to be an alternative to fiat this is because people will always use the latter. If Bitcoin gains acceptance by the government and the transaction fees still remain low, more people might choose to use it more than fiat. So, it will be common to assume that traditional banks might face a reduction in transactions if using Bitcoin is faster and cheaper. We are already experiencing strict regulatory laws in many countries. The government will keep making laws that will increase KYC, thereby increasing centralization.
The only people that will have more challenges to face aside from the ones that they are already facing are the broker operators. Regulations are not being made in their favour; they are being billed and asked questions by different government agencies.
We now live in a time where decentralized exchanges are attacked because the government has made laws that group them as a channel for money laundering. The Bitcoin space is gradually moving to an era where the government wants to control every part of it. And they will keep making and amending regulatory laws to achieve their aim.