It would not be wrong to say that, the advent of the emailing system stunted the growth and development of the global postal system. The acceptance of digitized documents and signatures, further pushed the conventional postal system into the background. So do banks fear that crypto currencies could bring their downfall. There is some truth in the statement, this brief report talks about some real issues.
The crypto world is new, it is evolving, it is not perfectly understood or rather, not understood by many. Crypto currencies can thrive on advanced blockchain technology. Money could be sent from one corner of the globe to the other, without going through lengthy bank formalities. Differences in currencies and conversion rates become irrelevant.
There is no doubt that regulations need to be framed to control transactions performed through crypto currencies. But blockading such innovative financial developments just because, they are tough to understand is a childish approach. Banks have for long ruled the financial world and continue to do so. Hefty bank transfer charges and fees involved when converting currencies, are often fixed with no reference made to actual costs involved.
No one understands the banking system better than the business community. And it is this very same community that stands to benefit from the widespread use of crypto currencies. If this scenario becomes a reality, it is the banks who would be affected the most.
When formulating rules and regulations for the issue and use of crypto currencies, it would be important to involve all related parties. Buyers, sellers, business houses, governmental agencies and surely the banks – will need to sit together and chalk out a plan. Technical issues thrown up during the discussions could be easily addressed. It is the other set of issues, related to business interests that will be tough to reconcile.
So where do we go from here, should we push ahead with blockchains and crypto currencies or should we just wait until everyone gets into a better mood. The fact is that change can often cause discomfort but, not embracing change can result in stagnation. The world or at least a major portion of it, is geared towards economic development and domination. Lack of innovation can result in lopsided development, it might save a few stakeholders but it is more likely to slow down economic development. The answer is on the wall, the time to discuss, debate and act is now.