Will Crypto Eventually Replace Banks as the Primary Money Transfer Method?

There are definitely some signs that cryptocurrencies might replace fiat currencies as the world goes progressively digital. That future seems all the more possible when one considers that central banks are turning to blockchain technology looking to create their own brands of digital money. Top cryptocurrencies of today also make good contenders in this race and their acceptance by major retailers indicates that this payment method isn’t likely to fall back to obscurity. However, there are many challenges that cryptocurrencies will need to face in order to replace cash as we know it. Some of those are currently insurmountable and there are no clear signs that someone is working on finding solutions to those particular issues.

Will Crypto Eventually Replace Banks as the Primary Money Transfer Method?

Top Cryptocurrencies of Today: What Are Their Prospects Really?

The list of top crypto currencies to watch today varies depending on who you ask. However, there are a few that are invariably included in those lists. Those cryptocurrencies are, of course, Bitcoin (BTC), Ethereum (Ether), and Ripple (XRP). Rapidly catching up to those definitive leaders of the industry are Litecoin (LTC), EOS, Binance Coin (BNB), and Basic Attention Token (BAT).

If you are surprised to see Bitcoin on this list due to its spectacular failure of a year in 2018, you shouldn’t forget that it has been the first and strongest of all cryptocurrencies. Therefore, even despite its extreme volatility, its name itself makes it impossible to dismiss. You will also see that it’s been steadily regaining its strength in 2019, which means its prospects are rather bright.

So are the prospects for all other cryptocurrencies mentioned above. They are steadily gaining strength and recognition, which means their chance to become the long-awaited replacement for banks and cash is high.

However, you shouldn’t forget that while bank money transfers aren’t liked by the majority of business owners and other individuals who have to deal with international payments, crypto doesn’t offer the perfect solution. There are many pitfalls of introducing crypto on a global scale, and those hurdles are nearly impossible to overcome.

You should also be aware that there are alternative methods of making international payments. Those don’t have the disadvantages of either bank transfers or cryptocurrencies, and there are many companies to choose from, each with its own set of terms and perks. These companies offer a viable solution where other methods fall short and therefore are taking the lead on the international money transfer market today.

It’s true that they will fail should cryptocurrencies make the leap to fully replacing fiat currencies. However, that time is far ahead yet, and there’s no guarantee that it comes at all. This won’t happen if no solution is found to overcome the challenges crypto is currently facing.

Top Challenges That Prohibit Global Cryptocurrency Adoption Today

  1. Availability limitations.
    While in some ways crypto is more convenient than cash, many people today have no access to it. Therefore, they will be at a huge disadvantage should digital currency become the norm. Unless a system is created to make it available to everyone equally, crypto will not be able to become the dominant currency.
  2. Lack of global regulation.
    The lack of governmental control is one of the benefits of using cryptocurrencies for individuals. However, on state levels it creates many problems and volatility of cryptocurrencies only adds to them. Governments of the world will have to find ways to exert some control over cryptocurrencies used within their borders in order for them to have a chance to truly compete with banks. However, one must consider that this control will remove part of the crypto perks and might make it not worth the effort of actually replacing fiat currencies.
  3. The very nature of cryptocurrency makes scalability a challenge. Therefore, to adopt it globally, the entire concept will need to be adjusted so people don’t lose their assets in this transition.

Will Crypto Become the Ultimate Currency on the Planet Anytime Soon?

With millions of migrant workers out in the world, international remittances are becoming the main source of income for a great number of families. Sadly, the current international money transfer systems are inefficient, which is why cryptocurrency has a great chance of taking the lead.

Bank transfers are slow and expensive, while crypto can make transfers instantaneous and ensure you don’t lose any precious money in transit. This seems like a perfect solution for one of the major financial issues today. However, there are still hurdles for cryptocurrencies to overcome until they can become a universally-accepted method of payment.

Making them accessible for everyone as well as making sure that people from every part of the world can actually use them to pay for any kind of product or service are definitely the greatest of those challenges. At the moment, the rate of spreading is too slow to make crypto capable of replacing banks as they are today. But there is work being done in that direction and with the demand for an easy, cheap, and secure method of international money transfers increasing, the chances of crypto becoming the ultimate financial solution are growing as well.

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