Tension on Whether Bank-Issued Cryptos will Overtake Bitcoin and Altcoins Crowds

News / 18.01.2020

The cryptocurrency domain is fearful about bank-issued cryptos replacing Bitcoin as well as altcoins. Nevertheless, to ascertain the validity of the fear, it is necessary to consider some facts. First, bank-issued cryptocurrencies will be in charge of those who receive the cryptocurrency units and their purpose. On the other hand, Bitcoin is a decentralized currency.

Bitcoin holders can determine its purpose and enable its use for the payment of goods and services, forwarded to people through remittance platforms, or one can keep for speculative uses. The original intention of developing Bitcoin and most cryptos is to provide financial independence to the people. 

When banks are in control of finances, it may be difficult to secure access to necessary tools and services for survival. For instance, individuals with weak credit or job history may not find a bank helpful. Banks may likewise reject the applications for credit or debit cards, not allowing them to make everyday purchases, although it is not the same with Bitcoin as people control its use.

Countries Continue to Execute their Centralized Forms of Cryptos

Some countries are revealing their plans to launch their centralized forms of cryptos while others already launched them. Venezuela launched the Petro currency in 2018 to fight US sanctions. Additionally, China also revealed its plan to release a digital form of the Yuan. Even though the digital Yuan is yet to get launched, the government already passed laws towards its effortless development.

Therefore, with all the events so far, there might be no need to worry. As centralized currencies keep coming, many people utilize cryptos like Bitcoin due to any single governing system’s inability to control it. Such people desire privacy and safety for their monetary activities, and it is not likely that they would prefer another environment.

In this case, despite the likelihood of some plans for centralized digital currencies to be successful, Bitcoin and other cryptos are likely to be intact and also keep growing as people look out for more privacy options and robust control.

Debasish Das is from India, an engineering graduate and holds a postgraduate degree in management. He has 10 years of experience in the financial sector, having worked for one of the biggest MNC banking groups in the country. Currently he has business in e-commerce, insurance and consultancy. As an avid blockchain and cryptocurrency enthusiasts he believes in investing in the future of technology, and feels this is going to make the world a single marketplace and also give the power from centralized banks and governments back to people.