Following our feature on the banks’ need for transformative changes in order to thrive in the era of cryptocurrencies and the latter’s advantages on money management, is a short account on banks’ key strengths to survive the imminent technological period.
Still according to Due, although crypto is an emerging alternative, banks aren’t completely out of the running. Banks enable people to find a lender more reliably and straightforward should they be in need of borrowing funds. Mortgage industry and lines of credit for businesses still need banks even if cryptocurrencies develop in the future. Since banks are physical, they are also more reliable in helping businesses make important decisions with supporting data following their advice.
These financial institutions also help maintain economic stability. According to Due, “They keep currency liquid, keep prices relatively stable and in some cases, have the power to increase consumer confidence and consumer spending by making money easier to borrow.” Cryptocurrencies, on the other hand, are rather volatile, if not unstable.
Lastly, banks have been tried and tested for centuries. Many people who don't understand the blockchain and crypto technologies or those who want to stay with using systems they are accustomed to are still hesitant of investing in cryptocurrencies. This would not mean that a lot of people will still stay with banks considering the time where we live in is fast in progression, but it will give banks a period to adapt to technological changes and transform to cater what the future needs.
Read Due’s Full Article here: https://www.entrepreneur.com/article/324840