The days of the traditional Banking system and the speed and cost of transactions internationally, versus Bitcoin transactions are hitting a tipping point. "The number of confirmed Bitcoin transactions per day has grown 6x from just over 50,000 in 2014 to over 300,000 as of February 2021". Source: Blockchain, and the cost & speed of the transactions are usually done much more quickly than traditional banking.
With over $30 billion in daily traded volume, stable coins are also slowly and steadily moving away transactions from the banking systems as well, so there is competition.
The banks are not happy with the competition as facilitating payments is highly profitable for them, providing the banks with little incentive to lower fees. For instance, their cross-border transactions, from payments to letters of credit, generated $224B in payments revenues in 2019. I don't think they want that to go away.it should get interesting pretty soon.
The reasons why blockchain is disruptive to the banks is because blockchain eliminates middlemen (the Banks) and encourages peer-to-peer interaction with a high level of privacy never seen before..
Trillions of dollars slosh around the world via an antiquated system of slow payments and added fees.
If you work in Los Angeles and need to send part of your paycheck back to your family in London, you might have to pay a $25 flat fee for a wire transfer, and additional fees adding up to 7%. Your bank gets a cut, the receiving bank gets a cut, and you’re charged exchange rate fees. Your family’s bank might not even register the transaction until a week later.
Now that the Blockchain can cut out the banks, there is no need for for trusted third parties to verify transactions thus giving people around the world access to fast, cheap, and borderless payments.
Cryptocurrencies like bitcoin and ether are built on public blockchains (Bitcoin and Ethereum, respectively) that anyone can use to send and receive money. In this way, public blockchains cut down on the need for trusted third parties to verify transactions and give people around the world access to fast, cheap, and borderless payments.
Bitcoin transactions take 10 minutes on average to settle, although this can lengthen to hours or even days in extreme cases. That’s still not perfect, but it represents a leg up from the average 3-day processing time for bank transfers. And due to their decentralized and complex nature, crypto-based transactions are difficult for governments and regulatory bodies to control, observe, and shut down.
I expect that there will be a seesaw effect occurring over the next few years as the banks are starting to work with Blockchain, but they will have to lower their pricing for their services to compete with the Crypto market, Up till now they only had themselves to compete with, Now it's a whole new ballgame...
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