Cryptocurrency is going to be the future of payments and It is high time we start thinking about having more cryptocurrency exchanges than banks. I understand that we have serious sentiments about Banks but there is a high possibility that in the coming years slowly the crypto exchanges would start taking over banks and maybe we might as well reach a point where banks would be completely replaced by crypto exchanges.
There is also resistance in the opposite direction where banks don't want the growth of cryptocurrency exchanges and they completely want to get rid of exchanges. Looking at the Binance case, it made me feel this way that it was an intentional thing where SEC is going against crypto exchanges and ultimately they don't want the exchanges to grow and this technology to grow further.
What is stopping exchanges?
Currently, the biggest challenge we have is the regulation of cryptocurrencies. Many countries are finding it hard to adopt cryptocurrencies because it is hard to bring proper regulations. Most of the exchanges operate in multiple countries and having one regulation that can fit all the countries is challenging. Another biggest challenge is to regulate things in the decentralized world. People go for cryptocurrencies looking for an opportunity to decentralize their funds. But if there are too many regulations to do that, it becomes very hard and people find it very hard to deal with both the government as well as the exchanges.
As mentioned in the above paragraph, I would also like to say that maybe banks are not very happy with exchanges taking over and they are silently not letting the exchanges grow. This is also one of the biggest challenges exchanges face in many locations. When the cash deposit and withdrawal system is down on an exchange, we can say that the banks are resisting and it can also be the case that they don't know how to regulate the system.
People would start doing p2p crypto transactions
This is the future if you believe me or not. Of course, this is just my prediction but can take a lot more years for this to happen. People might start trading in cryptocurrencies from one wallet to another wallet without any middleman. It is not that it can happen only in the future but I can already say that there are many countries in which this is already happening. In crypto-friendly countries, this can be made easy because there will be no need for a middleman or a bank exchange. Imagine a situation where someone in Singapore is purchasing groceries and they pay with their crypto wallet in the store.
If this happens there is no need for government interference and there is also no need for further regulations too. I believe there are a few places already where this is happening and soon this can happen in many other countries where people would not expect the government to regulate cryptocurrencies and they might start doing p2p transactions. It will be like our good old Barter system where people buy Tomatoes and they give Onions in exchange for that. The same is happening with crypto too. For one crypto people are giving another crypto.
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