Could cryptocurrencies and blockchain replace banking and finance?

Cryptocurrencies can easily replace fiat money in all its uses such as deposits, exchanges, and units of account, just as decentralized blockchain-based systems can replace banking with faster transactions with higher levels of security and lower fees.

However, this will not entirely happen as these will not stand aside as cryptocurrencies and blockchain replace them. Currently, world powers have considered launching a digital version of their currency to prevent bitcoin and cryptocurrencies from gaining too much momentum.

Although this is something that is still being well regulated, central bank digital currencies would have to provide most of the same benefits of cryptocurrencies to stop competition coming from DeFi systems. This is probably why central banks should let commercial banks fend for themselves, which will allow transactions with lower fees and fewer intermediaries.

The reality is that as the public becomes more informed about cryptocurrencies and decentralization, the more they see the benefits these have on the future of finance and the internet.

Another alternative to avoid being replaced would be to ban cryptocurrencies altogether, although many believe this is unlikely to happen as large companies are considering adapting to these digital currencies.