Bitcoin may be on its way to becoming more widely accepted. Customers of some U.S. banks will soon be able to buy, keep, and trade Bitcoin using their existing accounts. Bitcoin users have relied on apps from fintech companies, such as Robinhood, a free trading brokerage, to trade bitcoin. On the other hand, banks have avoided Bitcoin for regular customers, only recently revealing plans to allow wealthy wealth management clients to trade it.
Are the banks scared?
I'd say definitely! This is because most of their large clientele take significant amounts of money from their banks to invest in these crypto trading platforms. Most crypto trading platforms such as Binance trades $22 billion a day. This is money banks could be holding for other investments. Bitcoin, the digital gold, is being accumulated by most companies, and banks are no different.
Can Bitcoin kill banks?
Central banks are critical to the economy because they maintain employment, stabilize prices, and keep the financial system running in times of crisis. However, central banks are to blame for severe recessions due to their detrimental impact on consumers and the economy. While Bitcoin can be an alternative to central banks, it has several drawbacks, including a limited supply and legal status in most countries. Most central banks are testing the use of central bank digital currencies (CBDCs) in their economies, utilizing Bitcoin's architecture and technology.
The SEC and Bitcoin
The crypto community doesn't see the Securities and Exchange Commission (SEC) as crypto lovers because of their long court session with Ripple. The SEC is set to allow the first U.S. Bitcoin futures exchange-traded funds (ETF's) to begin trading, marking a significant triumph for the cryptocurrency industry, which has long sought approval from Wall Street's top regulator.
My Take?
Central banks have implemented elements of Bitcoin's design and technology to explore the case of a digital currency issued by central banks. Bitcoin's technology relies on algorithmic trust, and its decentralized system offers an alternative to the current centralized system. The cryptocurrency has a slow adoption rate, and its legal status is still uncertain.