In an October 24 interview for the university, Professor Emeritus of Finance at the Higher School of Business decided to share his opinion on this subject. He shared what threat the crypto industry poses to the banking system and how digital payments are better than traditional.
Cryptocurrencies could ruin the business model of banks over the next decade, announced Stanford professor Darrell Duffie. He also noted the taxation of financial transactions, which became possible with a uniform transaction accounting. Cryptocurrencies make the system more perfect, but a decentralized structure will leave transfers anonymous.
The expert claims that if there is no control over banking operations, this will reduce the influence of political forces on this industry. Competent laws that control cryptocurrency will create a unified system of digital assets, which will be much more efficient than banks.
“New payment methods will trigger greater competition for deposits. If consumers have faster ways of paying their bills, and merchants can get faster access to their sales revenue without needing a bank, they won’t want to keep as much money in accounts that pay extremely low interest.”
Central banks are aware of these problems and most of them already carry out respective investigations to be able to create their own digital currencies.
The central bank of Sweden recently announced his idea of launching the e-krona. According to their proposal, each resident could open a personal account and transfer payments directly to other people using that new digital currency.