Crypto banking is an important part of the development of the economy as it has found a high time record in 2021. They have constantly been attracting bigger audiences to use the mainstream user base for their technology.
The majority of people who are not comfortable with digital money and technology will never use cryptocurrency or Bitcoin for their future banking. Those who have no interest in joining new technology will join for the ease of work and it is an amazing platform for cheap and safe processing.
When we are handing our money to any organization it is essential to have a certain level of trust. The finance industry is one of those industries where the critical thing is to create trust, security and guarantee of their money. If there are a lot of bankruptcies that can break the trust of investors where they can lose their job or home will never help in building the industry.
Building trust with not only words but also action is necessary for the growth of the banking industry. Along with that crypto currency needs to be treated the same way as other types of currency.
When people are investing in certain assets they are primarily concerned about the future of investment. Cryptocurrency is built on the futuristic belief of going up in the future because the entire system is built on the blockchain. The belief in high benefits makes them one of the favourite choices for investment in the last decade.
Unlike fiat currencies, cryptocurrencies are resistant to inflation because they can easily expand indefinitely.
The stability value is higher than other systems of financial transactions and the fees are relatively low as it can be used by anyone that owns a smartphone. It brings opportunity for a lot of people who cannot match the pace of the traditional banking system.
But what Now for Crypto Banking? What are the challenges they will face?
With the rise of cryptocurrency, the government has to handle criminal activities and consumer protection more vigilantly.
- The illicit activities and recent increase in cybercrime have increased the concern regarding crypto banking increased with virtual currency exchange.
- It also requires a lot of energy to regulate the process which can contribute to environmental harm.
- The regulation of crypto banking is still not defined, which can raise the concern about tax evasion, cyber security and fraud.
- Apart from that terrorism helps to be an important concern in between economic sanctions against countries like Russia. The cryptocurrency transfer between self-proclaimed terrorist organizations like Al Qaeda has increased.
When the technology evolved the concern with them also increased. Crypto banking has embarked on a new journey for the banking system but it is important to craft regulations and rules to embrace the technology. The challenges are there but with expert hands, we can evolve ourselves to break the limit of the traditional financial system with innovation.