I am delighted to have this opportunity to discuss the future of banking in particular, the crypto currency system and a possible decentralised monetary system on traditional banking. Banks provide two economic functions - they operate a payment system and they engage in a financial intermediation, lending and investing either the money we deposit with them or through the credit facility they create for businesses enterprises households, and governments. The second function is the business side of banking where banks operate as profit seeking organisations with stockholders provide the equity capital needed to start and maintain a banking system.
As with any business there is inherent risk. :Let's look at the banking system and evaluate what would happen the if many borrowers can't and won't repay their loans? Would banks have enough capital within the reserves these risks?
The rise of crypto currency and its associated technologies (blockchain technology) have the potential to render traditional banking obsolete. There's no need for a 3rd party i.e. a bank to facilitate these transactions. The threat to our banks cannot be overlooked or ignored. We must adopt and adapt them or we'll get left behind.
Have a listen
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