Traditional banks in the crypto economy of future

[MrSpasybo]

Stablecoins are an integral part of the future of the financial system. And Facebook’s Diem, formerly Libra, is part of that future.

Facebook, it is reported, could launch its long-awaited digital currency as early as January 2021 in the form of a U.S. dollar-backed stablecoin. Central banks and regulators have been galvanized into action since Facebook first announced its intentions by publishing a white paper in 2019. They are right to be concerned, as stablecoins — particularly ones such as the rebranded Diem that have the potential for massive network effects — bring new risks to consumers and savers as well as to the global financial system.

Article: Facebook’s Diem stablecoin is an existential threat to traditional banking

In this article, the author believes that Libra's Diem will become a major force in stable coin and directly threaten traditional banks thanks to the huge user base from Facebook. However, I think this is in the distant future when governments still do not fully accept stable coins like Diem. And before this can happen, it is entirely possible for governments to develop other stablecoin strategies - their CBDC, to retain control of the economy.

What roles do you think banks can survive and operate in the global economy in the era of stablecoins & CBDCs? Here are a few of my predictions:
+ storing fiat assets to support stablecoins/CBDCs, for example bank ABCDEF holds $1000 to support 1000 USDC existing in market;
+ acts as a node in the blockchain that maintains the CBDC;
+ is the bridge connecting fiat & crypto;
+ continue to serve customers who do not trust or have access to crypto;
+ acts as the verifier and evaluator of collateral on loans;
+ acts as a loan & loan platform guaranteed by the government = cryptobank...

Do you think traditional banks will be completely wiped out in the crypto era?

[sergeybobrov]

The traditional banking system is already dying.  Cryptocurrencies are a logical evolutionary development of the old banking system.  Why would banks be needed if a cryptocurrency appeared that allows, without intermediaries, without a third party, on the basis of mathematical algorithms, to transfer values ​​to each other.

[masterrex]

Yes, thats how it goes. The Stablecoin like CBDC and Libra/Diem is also part of the centralized finance economy or to become a part of the centralized financial system because it's obvious that they are centralized, I believe that the Libra/Diem project is one of the examples of this digital Stablecoin that can be a bridge between the old financial system to the future digital finance economy and the traditional Banks has no choice but to accept it. 

[Tnoy30]

Traditional frogs play a big role in the economy. Traditional banks are very popular all over the world. Cryptocurrency is gaining more and more popularity through traditional banks around the world. Traditional banks can take a variety of steps for cryptocurrency or bitcoin transactions. So I support traditional banks.

[Unbunplease]

Sooner or later, traditional banks will disappear.  the time will come for a single currency that does not recognize borders.  Any cryptocurrency evangelist believes this - must believe ...

[Lenipiw]

At present governments around the world do not approve currencies. However, cryptocurrency transactions are possible in some traditional banks. There are many banks in which cryptocurrency transactions are done, but the government of the country does not know that. Cryptocurrency is also popular in various organizations around the world.

[Prime]

I don't think that the government and also private banks will let this happen. They will still survive and maintain the banks to exist. However, they will follow the development era of technology. using blockchain technology? Maybe. Or, probably there will be another more advanced technology to be offered in the future than Blockchain. We will not know that. But the existence of the traditional banks will not disappear moreover depending on each condition of the society and country itself.

[MRM]

Traditional banks play a huge role in the global economy. Traditional banks are needed for large transactions around the world. However, cryptocurrency transactions are being done in some of the traditional banks that have benefited from the spread of Sampriti cryptocurrency. Its importance is increasing through bitcoin transactions.

[Riya143]

I don’t know if Facebook’s Diem stablecoin is a threat to traditional banks. However, there has been a lot of speculation about it. This could be a new attraction in the future. Investors will also be attracted after the coin is launched in the market.

[labonikhatun]

If banks adopt crypto in the future it will be much easier to improve the economy banks will easily introduce cryptocurrencies and investors will be able to transact everything using cryptocurrencies as they wish which will accelerate the development of the world. Most people will lean towards crypto for investment.

[Alcor]

The traditional banking system is already dying.  Cryptocurrencies are a logical evolutionary development of the old banking system.  Why would banks be needed if a cryptocurrency appeared that allows, without intermediaries, without a third party, on the basis of mathematical algorithms, to transfer values ​​to each other.

No, the traditional banking system will not disappear anywhere.  State banks are part of the state and as long as they exist, both banks and national currencies will exist.  States will not use cryptocurrency widely.  Their digitized central bank currencies will be a good alternative to decentralized cryptocurrencies, so states' stablecoins will evolve. 
Problems with stablecoins like Libra-Diem can be easily resolved by states by banning the use of their national currencies as collateral for other stablecoins, as the Chinese government is already doing.

[MrSpasybo]

No, the traditional banking system will not disappear anywhere.  State banks are part of the state and as long as they exist, both banks and national currencies will exist.  States will not use cryptocurrency widely.  Their digitized central bank currencies will be a good alternative to decentralized cryptocurrencies, so states' stablecoins will evolve. 
Problems with stablecoins like Libra-Diem can be easily resolved by states by banning the use of their national currencies as collateral for other stablecoins, as the Chinese government is already doing.

It is clear that governments are not giving up their power, they create CBDCs to follow the crypto wave, taking advantage of the visible advantages of crypto while increasing control over the cash flow. And I think they will also continue to maintain tradition as a gate for both fiat and CBDC related services.

[gotbounty]

Someday when the Digital Yuan from China really reaps success, I'm sure many traditional banks from other countries will follow in China's footsteps. So that more and more stable coins will appear that will color the Crypto market.

[Giangphuong8489]

I still see traditional banks continuing to make a profit over the years, while many cryptobanks projects have disappeared due to failure. If CBDC is to spread, traditional banks will still exist to secure fiat reserves as well as serve communities that are accustomed to using fiat instead of CBDC.

[Quantum X]

Do you think traditional banks will be completely wiped out in the crypto era?

The cryptocurrencies future holds a certain measure of success and that will sure give big impact to the traditional banks globally. But I believe that such impact in the future is like a coin holding two sides. Which means it could weaker the other side of traditional banks while it could be the lucky charm on the other side by pushing them into grand innovations.