The meteoric rise of cryptocurrencies and along with it, blockchain technology sparked a global financial revolution that transformed the way we perceive and interact with money.
We have not seen anything like Bitcoin, or cryptocurrencies for that matter before. Something decentralized, profitable, secure, and global seemed so improbable before 2016, and yet we’re using Crypto banking as a staple saving method among millions of crypto users worldwide!
This revolution that changes how people perceive money and banking makes it plausible for crypto banking to be the future of finance.
And it’s not so far-fetched either! Given the features that blockchain could offer on its own, add to the fact that it is evolving as we use it more. It’s not surprising that the future of finance might find its new home in cryptocurrency!
But how viable is crypto banking? How will it usher in a new era of financial sovereignty and innovation?
Here are some reasons.
Crypto Banking’s Perks
Cryptocurrencies offer a plethora of perks you can’t find elsewhere. These features and benefits make crypto banking viable when it comes to saving and investing in today’s world! Some of these features and perks are realized in the real world too, thanks to DeFi projects like Scallop who aim to redefine money and digital wealth through blockchain!
Decentralization:
At the core of crypto banking, there is decentralization. This concept challenges the centralized control that conventional banks use to handle the wealth of those who trust them.
Thanks to blockchain technology, crypto banking allows peer-to-peer transactions without a middleman! This decentralization opens doors for financial availability for everyone, even countries who are previously inaccessible.
This decentralized nature of crypto banking enables financial inclusion, enabling everyone to access essential financial services even in countries where banks are unavailable.
The loss of need for intermediaries also helps manage transaction efficiency and costs, lowering transaction fees and wait times by a large margin. This decentralized nature of crypto makes banking accessible to everyone regardless of financial status, location, or race!
Financial Sovereignty and Control:
One of the main upsides of crypto banking is the liberty to handle your funds safely and securely. While in the past, we usually gave up control over our funds in exchange for security, financial institutions earn massive amounts of profit from the whole ordeal as we effectively allow them to use our money to further their investments, crypto banking stops this and empower users to handle their investments and savings on their own! Thanks to private keys and digital wallets, individuals can manage their funds, control their savings, and even profit from their money without any third-party entities!
Moreover, the transparency and immutability of crypto banking, best exemplified by digital wallet projects in the blockchain like Scallop ensures that financial records are tamper-proof, providing users with heightened levels of trust and custody over their own money!
Automation and Smart Contracts:
Crypto banking introduces the concept of automation and programmable money, thanks to smart contracts.
Smart contracts are self-executing commands and agreements with predefined rules and conditions encoded into the blockchain. These Smart contracts enable automation within the industry, efficiently polishing the processing of money and transactions within the blockchain by a long shot.
Smart contracts are native to crypto and enable innovation in the industry. Their versatility allows for various financial instruments and services to exist, from staking, lending, and even passive earning ventures for every user.
On the other hand, the programmability of money opened doors for DeFi (Decentralized Finance) to be born in the industry. DeFi is a sector in the financial world of crypto that is effectively its answer to modern-day banking. DeFi does this by encompassing a wide array of financial services and tools, which includes lending, staking, and passive earning ventures, as well as other financial security features that allow users to earn, learn, and participate in never-before-seen features and financial options while maintaining control over their money!
Asset Security and Safety:
An indispensable feature and a welcome benefit that crypto banking introduced to people since it came to be, the security of assets and safety of accounts is one thing that traditional banks couldn’t replicate on their own. The existence of secure digital wallets that could safely keep cryptocurrencies for users while still allowing for investments to accumulate in perceived value over time is a signature feature of crypto banking.
Furthermore, the use of highly volatile yet extremely profitable assets in safekeeping money helps every crypto banker fend off inflation which is one of the toughest problems that lead to asset depreciation and utter devaluation of hard-earned money.
Scallop, a new yet groundbreaking Financial Crypto Solution, does just that, and more. With the basic features that most crypto banks have like the added security and mobility,with it being accessible through multiple platforms, they also added features that will put the user’s welfare above all else, thanks to insured accounts and secured network systems you can’t find elsewhere in the industry!
Tokenization:
Arguably one of the most essential features of crypto banking, the tokenization of assets, whether it’s digital or in the real world, opens a world of possibility for ownership and accessibility within the industry!
With traditional banks, fractionalization of ownership isn’t possible, no thanks to laws and convoluting regulations that effectively bar people with less financial capabilities from opportunities that could set their life for good.
Tokenization will answer this by introducing fractional ownership, which allows everyone to get on investment ventures that only the rich can access!
The added benefit of ownership doesn’t just increase profit potential for every investor, big or small. It also opens doors for the efficient transfer of assets and items that are not liquid, increases liquidity for projects and specific programs that need it, and most of all, it streamlines the process of ownership, crunching tons of paperwork into a single transaction that acts as immutable evidence of the whole process itself.
These are just some of the game-changing benefits that Crypto banking could offer the world of finance soon. Some of these features have already lent their services to the real world, helping millions worldwide get financial help and capabilities without a bank!
Crypto Banking in 2023
Crypto banking nowadays has seen little changes, although innovations are underway courtesy of various projects across the cryptocurrency industry working sleeplessly to improve the current financial model.
With the potential for massive upheaval in the industry underway, crypto banking will once again shake the financial industry along with the cryptocurrency space, offering newer features and benefits for every investor and holder in the cryptocurrency space!
Wrap up
Crypto banking carries with it a paradigm shift in the financial landscape. More than the added benefits and advantages it has over traditional banking, the best feature it offers everyone is the ability to control your money safely and without compromising on profit.
As blockchain technology continues to evolve, the potential for cryptocurrency banking to change the banking infrastructure is remarkable.
We are already seeing glimpses of this bright future of finance and banking thanks to projects like Scallop who spearheads the crypto banking movement ahead of time and introduces the world to the future that awaits them!
