Banks - Crypto More Than An Emerging Risk
VISA and MASTERCARD are going to be the first gatekeepers to be removed and feel the pain of technology as they will no longer be as relevant. The fees they charge have increased rapidly over the years for the service they offer and will be their downfall.
We all know where this is heading as somewhere down the road not too far into the future banks and other financial institutions are going to come under fire. Cryptocurrenciess are and will be part of the payment process and in many instances replace what we know as everything is turning digital using blockchains.
Crypto-asset markets are fast evolving and could reach a point where they represent a threat to global financial stability due to their scale, structural vulnerabilities and increasing interconnectedness with the traditional financial system.
How quickly are things changing is what is worrying the financial institutions as they are trying to remain relevant in what is going to be a much different and changed market place.
Bitcoin was the talked about threat for years, but the reality is it is not Bitcoin, but the technology that lies behind the altcoins with their use cases. Bitcoin is a store of value but as a payment processor is nowhere near what is required. Granted many altcoins are nothing more than a token offering no value or technology, but then there are an increasing number that have a proper project and are a threat to the institution controlled banking system.
Crypto currency as an overall disruptor and threat is still way too small an needs to increase in size before the threat levels are raised. This can happen with the blink of an eye as the technology is evolving and moving forward at an increased pace.
In 2018 the Financial Stability Board implemented a monitoring framework to keep an eye on Crypto developments. In 2020 they had concerns over stable coins and DeFi which wasn't around in 2018 and has changed Crypto in so many ways. The next meet up is scheduled for 2023 and expect payment processing to be a key point to try and protect next.
The payment processing systems are handled by the institutions currently and with COTI launching 3 Enterprise tokens in Q4 this could create panic. This depends on who these companies are as removing the current gatekeepers could become more than problematic for the institutions.
If we think of APPLEPAY they still use banks to process their payments as everyone still uses the bank cards for payment. Now take away the bank card as a payment facilitator and the consumer uses a Crypto wallet instead with APPLE Coins that threat has now escalated as they have now been bypassed.
The Q4 launches are going to highlight how and where the future is heading and will change Crypto forever as the mass adoption will receive a huge boost resulting in the time lines being shortened. The Enterprise Tokens represent a bigger risk to everything banks have seen thus far as these Companies will facilitate their own processing of payments.
Posted Using LeoFinance Beta