Banks Release ‘Seismic’ Warning About Crypto Possibly Replacing Fiat Currencies
Disclaimer: This article does not constitute financial advice. Please consult a professional before investing in cryptocurrencies or other assets.
Banks are panicking due to the potential of cryptocurrencies replacing centralized fiat currencies. Bitcoin and other cryptocurrencies have soared back over the last month after a China and Elon Musk-induced sell-off.
The bitcoin price recently broke above $50,000 per bitcoin for the first time since May.
Meanwhile, double-digit gains in other prominent cryptocurrencies, such as Ethereum, Binance’s BNB, Cardano, and Ripple’s XRP, boosted the total crypto market value to almost $2.1 trillion, up from $1.1 trillion in July.
A poll of primarily finance professionals conducted before the latest bitcoin and crypto price spike found that the majority believe bitcoin and digital assets would replace fiat currencies like the US dollar over the next five to ten years, a shift described as “seismic.”
“We uncovered several findings that illustrate a seismic shift in financial services resulting from the evolution of blockchain-based digital assets,” 76 percent of finance experts believe bitcoin and other cryptos could serve as an alternative to or substitute for fiat currencies in the next five to ten years, according to a survey written by Deloitte consultants lead by Linda Pawczuk.
Financial institutions who refuse to adapt to the growing demands for crypto may find themselves in a “Blockbuster” situation, in which cryptocurrencies might dominate the future just like movie streaming services do.
A large majority (81%) of the nearly 1,300 CEOs polled believe blockchain, the technology that underpins bitcoin and cryptocurrencies, is widely scalable and has already gained general acceptance. Meanwhile, 73 percent of respondents believe their organization should use crypto and blockchain technology or risk losing a competitive advantage.
“The foundation of banking has been fundamentally outlived and financial services industry players must redefine themselves and find innovative ways to create economic growth in the future of money,” Pawczuk, head of Deloitte’s global blockchain and digital assets practice told Forbes.
As central banks throughout the world experiment with blockchain-based central bank digital currencies, Wall Street banks from Goldman Sachs to JPMorgan have begun rolling out bitcoin and crypto services to their clients this year (CBDCs).
Power-hungry communist China has already begun real-world trials of its digital yuan, while European and North American governments fire first salvos into CBDCs. In September, the Federal Reserve will release a much-anticipated report on CBDCs, which could shed light on what a future digital dollar would look like.
Big Tech companies like Facebook and Twitter have started looking into bitcoin and crypto, with Facebook attempting to construct its own blockchain-based cryptocurrency and Twitter CEO Jack Dorsey focusing on bitcoin development.
“The future is happening right now,” the Deloitte report read. “Participation in the age of digital assets is not an option—it is inevitable.”
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