It is possible to imagine a world without banking?
Digital revolution has leaded to the achievement of a new economic model known as the ‘’internet of money’’. this new system is backed by a decentralized technology called block chain that has impressively transformed the way we trade.
The block chain system not only provides a better environment in terms of transparence and security but it is also known for his speed in the whole transaction process. This technology has also benefited several economic sectors leading to the establishment of new business models also known as the ‘’blockchain economy’’. In this respect, the impact has been huge enabling not only the appearance of cryptocurrencies but also improving the way we secure data. In that sense, blockchain technology has facilitated a large number of process such as contracting, transacting, validating and others. For instance, digital companies like Facebook or Google are taking profit from blockchain technology in order to ensure data backup process.
Concerning the cryptocurrency topic, the establishment of a decentralized technology has been a source of inspiration for a lot of economic operators. In fact, organizations of all types both public and private are analyzing the possibility of deploying their own cryptocurrencies based on the intention of competing Bitcoin. The cryptocurrency market has exploded in recent years leading to the appearance of new crypto actives (Moneo, Litecoin, Cardano) that are carrying different projects regarding trading, infrastructure, supply chain and others through an operation known as initial coin offering (ICO).
Regarding the public sector, the utilization of blockchain technology can be illustrated by the works made by the European central bank (ECB) on December 2019 that have proposed a potential study for an application of cryptocurrency in the euro zone. Equally, some countries like Venezuela, Singapore and Senegal have developed their own crypto actives in the interest of exploring a substitution of cash. Consequently, the boost of blockchain technology has led to the rise of new protocols and whit that the appearance of centralized cryptocurrencies such as Ripple, EOS, NEO opening in that way an alternative for the traditional banking activity.
However, despite the advantage of this technology, many actors remain skeptical about its use. Even if the traditional banking system is not perfect it has served as a retaining wall controlling where the money comes from avoiding illegal investments such as money laundering and illegal purchasing and funding of crime gangs.