Cryptocurrency and what lies ahead for banking and finance

My name is Steve Sorensen, CPA. While being an accountant is my job, my passion lies with helping people with their finances by giving advice and discussing about the latest banking and financial trends.

Image source: ethnews.com
Today, I want to put the spotlight on one of the most popular (some would say infamous) financial and technological trends in recent times – cryptocurrency.

The favored son of blockchain technology, no other technological breakthrough has held as much promise and controversy as cryptocurrency. The main issue for traditionalists is quite obvious – cryptocurrency does away with banks. This brings me to the second Steve Sorensen point – how has cryptocurrency affected global banking as a whole?

Theoretically, fractional-reserve banking will shoulder most of the brunt of the changes brought about cryptocurrency. Financial experts foresee a shift to the overall number of credits given, which may threaten the stability of banking as a whole.

However, while most banks lack the infrastructure to keep up with cryptocurrency, this presents an opportunity for banks to improve on their customer relations and services to attract more people.

Image source: youtube.com
Whether intended or not, cryptocurrency may have ushered a new age of banking, an age where the simple responsibility of acting as a ‘money warehouse’ will be over and done with, and more hands-on approaches in servicing customers will be implemented.

Steve Sorensen is a CPA and financial advisor from Colorado. Follow him on Twitter for updates on the finance industry.

Comments

  1. ElizabethMay 21, 2019 at 6:40 AM

    If 2018 is any indication about the future of Bitcoin and other cryptocurrencies, 2019 will prove to be a challenging year for investors and technologists, I think.

    ReplyDelete

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