Can Bitcoin threaten the existence of Central Banks?

[0t3p0t]

Bitcoin is decentralized and we all believe it still has the potential to take over central banks if people start to understand modern financial structures...

Some people feel that banks are quite detrimental to consumers... mafia and very complicated administrative schemes make it a very detrimental challenge... and the presence of Satoshi Nakamoto with his Bitcoin has made some people start to explore further about its potential...

So.. do you believe that Bitcoin has a chance to replace banks?? In fact, some banks are adopting an important element of Bitcoin, namely blockchain technology... we know it as CBDC...

Bitcoin bring the freedom to the financial system and the main goal of the Satoshi Nakamoto is this. And day by the it also spreading in the world.  But there is a large area what are out of the range of internet and where no internet access they could familiar with the digital currencies i.e. the cryptocurrencies.

But if we look back to the past history then we will see there are lots of changes of ours financial eco system so in this regard I want to say that may we can see the bitcoin usage in a large scale but Banking system will stay in the world.

The banking system will still exist in this world, because not everyone knows and invests in bitcoin. Bitcoin offers financial freedom, this is what worries the government. but I believe in the future banks and bitcoin will coexist and complement each other.

Yeah only few are investing in Bitcoin and majority still prefer the traditional way and yeah financial freedom is what drives most of us here and I can see traditional banking and Bitcoin coexist in the future because they are best in that way but I am just concerned about government restrictions on cryptocurrency in general because based on my observation they started to put pressure on some private things like Telegram so I am just hoping it ends there not to the point of crypto getting kicked out of business.

[Dr.Bitcoin_Strange]

BTC and banks already work together. In the USA
 Wells Fargo works with coinbase
PayPal works with syncronitcy bank and coinbase.
and Citibank works with Coinbase.

Banks are not going anywhere but they have been improved due to BTC. As Zelle now works in the USA and allows instant cash sends bank to bank

I'm sure that's true, but we can only find this collaboration between banks and Bitcoin or cryptocurrency in few countries, a lot of governments/ countries despise the existence of crypto currency, and because of that, they restrict banks and other financial institutions to avoid any form of collaboration with Bitcoin and crypto currency at large, this is because they believe that the existence of crypto currency posses a threat to them because of its decentralized nature, since they won't be able to control the financial affairs of individuals within their jurisdictions. It takes only those countries that understand the concept of crypto and how much positive impact it can make will be able to accept and completely legalise crypto in their country and allow them to collaborate with banks.

[summonerrk]

If Bitcoin were to gain more and more influence and take it away from banks, I would be only happy. After all, banks are controlled by the external geopolitical situation. And if something is wrong, then any person can be deprived of their right to send money abroad. Not to mention that they can freeze accounts. And cryptocurrencies give us confidence that we will stay with our money.

[MrSpasybo]

I think Bitcoin is not a threat to central banks. However, many believe that the Bitcoin market is still small and underutilized.  So it cannot have a major impact on central banks.  However, some banks and government agencies are trying to take advantage of blockchain technology.

BTC was created to be a currency, and each individual would become their own bank by self-custody rather than relying on intermediary banks. Therefore, it is the users and their financial habits that pose a threat to the existence of banks. If all users only trust crypto and trade BTC with each other, banks would have no revenue and would soon go bankrupt. BTC is merely a financial tool and not a risk to banks.

Currently, while investors are still tied to CeFi, banks continue to exist and profit from traditional finance. However, I believe they are interested and ready to support crypto services for customers to generate additional revenue from crypto as soon as governments have legal frameworks for crypto assets.

[Crypto Library]

Yeah only few are investing in Bitcoin and majority still prefer the traditional way and yeah financial freedom is what drives most of us here and I can see traditional banking and Bitcoin coexist in the future because they are best in that way but I am just concerned about government restrictions on cryptocurrency in general because based on my observation they started to put pressure on some private things like Telegram so I am just hoping it ends there not to the point of crypto getting kicked out of business.

Can you say why the majority still prefer the traditional way or used the traditional banking?
Most of the people are not know about the bitcoin and the internet in the world and I think the authorities are also in the behind to not familiarize people about the decentralized ecosystem because here may be they loose their business on banks?
Because if peoples will use the decentralized eco system the they might also loose the control on the ecosystem. All of these outcome result we are seeing that bitcoin are not familiarising to the peoples

[Stompix]

If all users only trust crypto and trade BTC with each other, banks would have no revenue and would soon go bankrupt.

Banks are more than just trading or depositing money.
They offer credit lines, they offer loans, no crypto can do that unless you have collateral, so for 90% of the population banks are the only solution for a mortgage or a loan,  and this will not change ever, you still need some to take those even in Bitcoin world.

[JunaidAzizi]

Bitcoin and banks are two different ways of financial systems, and they both work for the benefit of people. However, the thing that separates them is their approach to financial freedom. Banks do not provide financial freedom; in fact, they bind you and use your money for their investments while also giving you limited access when you try to withdraw your money. On the other hand, Bitcoin offers a free system and freedom, putting everything at your fingertips.

If people understand this and learn how to use Bitcoin for their daily needs, then, of course, it will threaten the banking system. However, it may not be possible because fewer people know about the use of Bitcoin, and banks involve them in a trap system. I believe the next generation will fully understand Bitcoin, and if that happens, there may be no banking system at that time.

[Wiseman]

So.. do you believe that Bitcoin has a chance to replace banks?? In fact, some banks are adopting an important element of Bitcoin, namely blockchain technology... we know it as CBDC...

For the most part, banks are not threatened by bitcoin but by stablecoins like USDT, and they are constantly fighting them, constantly launching negative news that they either have no collateral or it is fake or it is insufficient in their opinion. I don’t think this should be believed and taken as the truth, but such anti-advertisement works and because of this, fewer people come to cryptocurrency and therefore they continue to feed people with false news about bad cryptocurrency.

[bmr]

The potential for Bitcoin to replace traditional banks is an interesting idea, but it is complex and has some challenging issues to implement.

Bitcoin's decentralized nature and ability to operate without intermediaries has given it a unique position in the financial world. It can give consumers more control and reduce reliance on centralized institutions like banks. It is attractive to those who find conventional banks opaque, overly complex, exploitative. However, completely replacing banks with Bitcoin is unlikely in the near future. Banks provide a range of services beyond simply storing and transferring money, such as credit, loans, and financial planning, which are deeply connected to the economy. Moreover, governments and regulatory agencies have significant influence over the financial system, and they will likely adapt or modify Bitcoin rather than replace it. Central Bank Digital Currency (CBDC), which is a digital form of traditional currency using blockchain technology, is one way that traditional banks and governments are responding to the rise of cryptocurrencies. A CBDC can offer some of the advantages of Bitcoin, such as faster transactions and lower costs, while maintaining central control.

Ultimately, while Bitcoin has the potential to challenge and even disrupt the traditional banking system, replacing banks entirely is long-term and uncertain. Instead, we may see a future where both coexist, with Bitcoin providing an alternative to and complementing the conventional financial system.

[bayu7adi]

So.. do you believe that Bitcoin has a chance to replace banks?? In fact, some banks are adopting an important element of Bitcoin, namely blockchain technology... we know it as CBDC...

For the most part, banks are not threatened by bitcoin but by stablecoins like USDT, and they are constantly fighting them, constantly launching negative news that they either have no collateral or it is fake or it is insufficient in their opinion. I don’t think this should be believed and taken as the truth, but such anti-advertisement works and because of this, fewer people come to cryptocurrency and therefore they continue to feed people with false news about bad cryptocurrency.

Regarding USDT, the only trust that stablecoin users have is if the manager actually buys USD equivalent to the related stable coin. And proving that is certainly the responsibility of the related stable coin manager... if the accusations from the bank are successfully refuted by the manager and it is announced, then the next accusations will be weakened and people will trust the related stable coin manager more.

It seems that from the existence of stable coins, it is quite troublesome for banks. Considering its current circulation which is quite large and many blockchains that support stable coins.

+1 karma for you.

[Wiseman]

So.. do you believe that Bitcoin has a chance to replace banks?? In fact, some banks are adopting an important element of Bitcoin, namely blockchain technology... we know it as CBDC...

For the most part, banks are not threatened by bitcoin but by stablecoins like USDT, and they are constantly fighting them, constantly launching negative news that they either have no collateral or it is fake or it is insufficient in their opinion. I don’t think this should be believed and taken as the truth, but such anti-advertisement works and because of this, fewer people come to cryptocurrency and therefore they continue to feed people with false news about bad cryptocurrency.

Regarding USDT, the only trust that stablecoin users have is if the manager actually buys USD equivalent to the related stable coin. And proving that is certainly the responsibility of the related stable coin manager... if the accusations from the bank are successfully refuted by the manager and it is announced, then the next accusations will be weakened and people will trust the related stable coin manager more.

It seems that from the existence of stable coins, it is quite troublesome for banks. Considering its current circulation which is quite large and many blockchains that support stable coins.

+1 karma for you.

Yes, it's not even about who and how provides the stablecoins, but the essence of the news itself, for example, we won't go far and remember how Pavel Durov was arrested the other day, after his arrest you probably noticed how the rate dropped, these were not simple token holders but network validators, because of whom the network began to slow down a lot because some of them pulled out their coins from there and the throughput dropped a lot, I gave this example so that you understand that even bad news that doesn't have much of an impact (or doesn't have any impact at all) can cause serious damage and the same banks saying that others don't have collateral can also cause serious damage because some believe everything bad and don't even think to double-check.

[legend45]

I say no, because banks and bitcoins are different. If BTC can replace banks, then BTC is regulated by the government. There is no longer any secret about its ownership. So it is impossible for BTC to replace banks. There will definitely be an imbalance in the comfort of transactions if it is monitored.

I also don't think that bitcoin will replace banks, because I think it will take a long time and the government will not let it happen. The government will definitely always protect banks and FIAT. Although we know many advantages of using bitcoin, I am sure the government will also issue its digital currency.

[bayu7adi]

I say no, because banks and bitcoins are different. If BTC can replace banks, then BTC is regulated by the government. There is no longer any secret about its ownership. So it is impossible for BTC to replace banks. There will definitely be an imbalance in the comfort of transactions if it is monitored.

I also don't think that bitcoin will replace banks, because I think it will take a long time and the government will not let it happen. The government will definitely always protect banks and FIAT. Although we know many advantages of using bitcoin, I am sure the government will also issue its digital currency.

Why do you focus on the differences? While between BTC and banks there are some similarities that could actually be an opportunity for BTC to take over the position of banks that lead in certain sectors, yes because maybe most people think that banking is quite boring and complicated...

For example, the similarities between Bitcoin and banks are, both can be used as payment gateways, which means both must have their own fans, indeed overall, the total transactions using BTC are still small, but it does not rule out the possibility that banks are starting to be threatened because cryptocurrency still has the potential to grow and attract other users who love privacy.

[Azharul]

Bitcoin is best profitable crypto in cryptocurrency world. I think that bitcoin is also a digital crypto bank in cryptocurrency market. But another we saw it’s price will up and down sometimes. But almost time bitcoin price is high than others crypto currency. I also believe that bitcoin is not threaten for central bank’s. But we can see that people also want to know which is the best profitable for, so they selected bitcoin. So i believe that existence in central bank’s is not threaten to bitcoin.