How Cryptocurrency is Revolutionizing the Banking Industry
Blockchain technology has grown rapidly in the last decade. This is the underlying technology that facilitates the transfer of crypto assets such as bitcoin. This has made an impact in the entire financial market. Throughout the globe, people have changed the way they carry out their financial transactions. Due to the impressive uptake, crypto banking has become a great contributing factor in financial industry.
Cryptocurrency does not only offer services that we find in conventional banks but has grown to be utilized in online purchases by some ecommerce shops. Cryptocurrency will guarantee efficiency, security, transparency and bureaucracy will be reduced. Below are some of the ways in which cryptocurrency has changed the banking industry.
ELIMINATION OF IMPERFECTIONS IN THE BANKING SYSTEM
Banks have been left vulnerable to data breaches, compliance issues and other governance problems due to advances that have been made in the field of technology. Cryptocurrencies are taking the role of dealing with such imperfections. For example, if we compare crypto banks to the traditional banks that we are used to, we find that crypto bank is immune to data hacks unlike the traditional banks where they can get hacked easily. Transactions for cryptocurrencies are secure and anonymous. Crypto-cash cannot have a counterfeit since it is not paper cash.
TRANSACTIONS FOR CRYPTOCURRENCIES ARE LOW
Traditional money transfer is not as cheap as cryptocurrency transactions. For instance, if you pay for a good or service using your credit card, there will be some added charges along the way. This is because of the fact that in order to fulfill this transaction, there are other entities that will be used to verify and authorize them. This will result in you not having the correct amount of money you are owed. One of the advantages of crypto cash is that they don’t charge a high fee for transaction to be processed.
ELIMINATION OF MIDDLEMEN
Cryptocurrencies are based on a decentralized system. This means that you can make transactions independently and securely without involving any intermediary. For traditional banking systems, the money is stored in the bank and one cannot make a transaction if the bank has not sanctioned that transaction. No entity will hold your money in the crypto world. This is because money in cryptocurrencies is stored in the cloud using blockchain technology.
IT IS EASY TO USE
Due to improvement in technology, people expect to experience faster, easier and fast transactions. Cryptocurrencies will make banking convenient for all of us. With cryptocurrencies, you won’t need to walk around with your credit cards or cash. Blockchain technology has resulted in digitization of today’s banking industry. In blockchain technology, you can put your currencies in electronic wallets. Electronic wallets are safeguarded by a secure password.