Banking has existed for centuries as the main currency exchange and business system. Banking began in the first century when merchants lent the grain to farmers and other necessary items to artisans and merchants. Over time, banking has evolved into a highly organized system that we now know. The development of cryptocurrencies has caused a fundamental change in business and transactions development. As it turns out, transactions can take place outside traditional banks. What will the future of banking look like in the context of cryptocurrencies? Will traditional banks fall? Or maybe they implement cryptocurrencies? Will they push the cryptocurrency tax? You'll find the latest news about the banking on Tokeneo News. People no longer have to choose traditional banks if they need funding or have to transfer funds. Peer-to-peer networks, including all decentralized cryptocurrencies, are becoming more common, which creates new challenges for the banking system. Many banks perceive cryptocurrencies as a threat to the industry. The French banking giant, BNP Paribas, published a report in which it discussed the technology of cryptocurrencies and the way in which it could make traditional banks superfluous. According to some bankers, cryptocurrencies should be treated as an invention, like steam or combustion engines, that can transform the world of finances. The "UK Banking Report" states that cryptocurrencies are definitely a threat to traditional banks, especially if the banks ignore new consumer behaviour and preferences when it comes to the way transactions and money transfers are carried out. Bitcoin users can deal with daily payments without having to interact with banks to avoid fees. This way, the value stored on PayPal accounts moves outside the bank's payment systems, depriving banks of their revenues. What can banks do in this situation? Traditional banks need to refine and modernize their offers in customer service, digital coins and fees areas. If they don't, they may be far behind the cryptocurrency financial projects that are currently on the market.
On Tuesday, July 16, a Senate Banking Committee meeting was held regarding the Facebook cryptocurrency project, Libra. The session was attended, among others, by a co-founder of Libra and by Senators of the Republican and Democratic Party.