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Will Big Banks Make Or Break Bitcoin?

4 min read

(Photo by Chesnot/Getty Images)

For years, big banks played an important role in global capitalism. They have been the gatekeepers of national currencies flowing between central banks and the general public. And they have been collecting hefty fees for this role – fees that pay the salaries and bonuses of their employees and the dividends of their stockholders.

In recent years, big banks have played another role — the gatekeepers of money flowing between national currencies and Bitcoin.

That’s why big banks have the power to make or break Bitcoin. Which action will they take? The answer depends on whether or not big banks develop their own blockchain, and whether Bitcoin will be used as a substitute or as a supplement to national currencies.

Coin/Investment Trust 7d Change *
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*As of Thursday May 24, 2018 at 9.30 am

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[Ed. note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment. Disclosure: I don’t own any Bitcoin.]

Some cryptocurrency experts think that big banks cannot stop Bitcoin even if they develop their own blockchain. Joe Onyero, C.E.O. & Founder of Bebuzee, is one of them.

“Big banks cannot break Bitcoin, even if they create their own blockchain, which I suppose would be centralized and that goes against the principles of blockchain,” says  Onyero. “Blockchain is seen as a technology revolution because it is decentralized. That’s why banks have no choice but to adopt Bitcoin. And that can make the digital currency, as it will open the way for a broad acceptance.“

“I would say banks will make Bitcoin if they choose to adapt, because this will pave the way for a wider recognition of Bitcoin.”

This doesn’t mean that Bitcoin will replace fiat money. “Crypto is not going to replace fiat money, fiat will be used for some things, while Crypto for others, and more people will likely bank with whoever makes this easiest,” continues Onyero. “I think that for banks it is more frightening to ignore cryptocurrencies and face being left behind.”

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