When it comes to the banking sector, everything happens according to the times and the seasons. The system has continued to evolve, and no particular department is ever left behind. Any part of the sector that attempts to resist change always struggles and sometimes fades away. This ideology puts us in a strong position to assume that with what is happening in the crypto ecosystem, the new Bitcoin banks have finally started emerging and have no intention of leaving.
Bitcoin and cryptocurrency has developed significantly. Beyond the particular blockchain networks where users created wallets to make transactions, many enabling innovations beyond those capabilities are with us today. As they continue to emerge, they redefine the narrative and make Bitcoin and cryptocurrency more real for the everyday user.
Recent plans by some big players in the industry who intend to implement stablecoins and exchange services, puts mainstream banking up for some serious competition. Facebook has already made public its plan to introduce a fiat-backed cryptocurrency, Libra. Coinbase is linked to USD coins and Binance is about to release its own stablecoin. The relative advantage that these systems will have over traditional banking models will definitely require the traditional banks to either adopt the new technology or suffer huge consequences. This is proof that the new Bitcoin banks are here.
Platforms like tap are already enabling crypto users to carry out their banking services under more convenient circumstances. Holding the tap prepaid MastercardⓇ means that you can make payment in any currency across the globe without stress. The platform also allows you to transfer money instantly to your own bank account and in the near future to an account of a third party at relatively no cost. As well as many other solutions that encourage inclusiveness and promote a stressless banking experience, the tap platform is already championing a crypto revolution in banking.
The plans by these big players like Binance, Coinbase, Facebook and Huobi among others, is a clear sign that big things are about to happen in the banking industry. Now, let us consider what some of these giants are up to, with regards to financial solutions and inclusion.
Coinbase is one of the old exchanges in the Bitcoin and cryptocurrency industry. The major focus of the exchange has been on facilitating the buying and selling of Bitcoin and cryptocurrency using bank accounts and credit or debit cards. With over 20 million customers, Coinbase is currently present in over 40 countries across the globe. Recently, the exchange announced the acquisition of Xapo, further expanding its reach and pushing towards the world’s largest custodian of digital assets.
Coinbase already has a stablecoin, which it claims to be used in facilitating financial inclusion. The stablecoin is called USD Coin (USDC). It also claims that USDC has been introduced to serve purposes of convenience and reliability. The advantages claimed by Coinbase is that over regular fiat like the US dollars, with the USDC;
The Binance stablecoin project has been announced. It is an open blockchain project for the development of localized stablecoins. This is in addition to the BTCB and BGBP, which are stablecoins with which Binance is already involved. They are pegged to Bitcoin and the British Pound respectively.
If Binance is involved in such a project, then the industry should be concerned about it. Here is a platform that trades over $1 billion in terms of volume, and has listed over 150 different cryptocurrencies.
Apart from its plans, Binance also suggested that the government of China should pay a closer look in the development of stablecoins. It mentioned a number of specific ways that such projects can come under effective regulatory guidelines that will enhance the industry.
The 2017 regulatory clampdown of exchanges in China saw Huobi relocate its headquarters to Singapore. This has not stopped its expansion, as the exchange currently commands a daily trading volume of around $1.1 billion.
As an exchange, Huobi offers various services that are helping in the expansion of the Bitcoin and cryptocurrency industry as a whole. Like the other giants mentioned above, Huobi too is shifting gears. With the HUSD stablecoin, the platform is adopting banking services as well for its customers.
Would we say that traditional banks should be worried? Not exactly, because capacity has not been taken away from them. Just like in the previous times, when technological advancement required these same banks to adjust, this is not much different. What we will be expecting is for them to begin their evolution process.
At this point, we may not be able to ascertain fully to what extent and in what form this evolution is going to take place. However, it is safe to say that the industry has come so far to leave an impact in the financial solutions industry.
Innovations are springing up fast, and significant bodies are standing up to be counted. While we look forward to the response of the regulatory bodies and the traditional banking sector, one thing is certain. The new Bitcoin banks are here, and they are here to stay.
It's only a few taps away.