Bitcoin as an alternative to banks

The other day, a video was published with a speech by Israeli Prime Minister Benjamin Netanyahu in which he highlighted his vision of the issue of cryptocurrencies and Bitcoin in particular. The minister expressed the opinion that the classical banking system is outdated and can easily be replaced by Bitcoin.

 The Head of State was prompted to this conclusion by both the increased interest and rapid growth in popularity of Bitcoin itself, as well as the continuously growing Blockchain technologies.

Netanyahu confidently stated that banks will eventually become obsolete and be replaced by new virtual technologies. Questions remain open: how this will happen and how soon.

In his speech, the Prime Minister focused on the role of the banking system in ensuring the legal conduct of transactions and the security of financial transactions. But this allows banks, not to mention governments, to control financial flows and enjoy this control at the expense of the parties involved in transactions. 

The main role of Blockchain technologies is aimed at making payments directly, bypassing banking control. The decentralized technology of such operations itself, and not centralized management, is the guarantor of the validity of transfers and their security. According to Benjamin Netanyahu, this feature of Bitcoin is what makes the cryptocurrency so significant and attractive today. 

However, the prime minister expressed doubts about the duration of Bitcoin’s rapid growth. “There is nothing like this that can continue to grow at the same rate, it is simply impossible,” Netanyahu said.

At the same time, a new project was announced in South Korea, limiting banks to carry out transactions related to cryptocurrency. This primarily affected bank clients trading on virtual currency exchanges. Korean traditional banks are opening virtual accounts for such clients for cryptocurrency trading. When registering new accounts, the owner of the new account will need to undergo verification. Some banks responded to this statement by stopping the registration of virtual accounts and canceling existing ones.