RATE Group | Cryptocurrencies Could Eliminate Banking’s Easiest Moneymaker
66614
post-template-default,single,single-post,postid-66614,single-format-standard,ajax_fade,page_not_loaded,,qode_grid_1300,side_area_uncovered_from_content,footer_responsive_adv,qode-content-sidebar-responsive,qode-child-theme-ver-1.0.0,qode-theme-ver-13.3,qode-theme-bridge,wpb-js-composer js-comp-ver-7.9,vc_responsive
 

Cryptocurrencies Could Eliminate Banking’s Easiest Moneymaker

26 Oct Cryptocurrencies Could Eliminate Banking’s Easiest Moneymaker

Posted at 20:18h in Cryptocurrency News by

[ad_1]

Hands are silhouetted against a backdrop projected with the picture of various currencies of money in this illustration. Credit: Reuters/Kacper Pempel/Illustration
If non-bank payment companies are allowed to set up accounts at government-controlled central banks, the banking industry could be in for some pain. | Reuters/Kacper Pempel/Illustration

If the measure of a currency’s importance is how much it’s used to actually buy and sell things, digital currencies like Bitcoin and Ethereum have barely gotten off the ground. And Facebook’s proposed entry, Libra, has run into a wall of skepticism.

But don’t be misled, says Darrell Duffie, professor of finance at Stanford GSB. Unless banks come up with much faster and cheaper ways to transfer money, he predicts, digital currencies in one form or another are likely to upend the industry’s business model within the next decade.

“The future is coming, and it will be very disruptive to legacy banks that don’t get with the program,” Duffie says.

The disruption won’t necessarily come from the likes of Bitcoin. It’s more likely to come from a “stablecoin” that’s pegged to…

[ad_2]

Source link

Tags:
, , , ,