The image that is presented to the world is that banks want to cripple the cryptocurrency market. Bitcoin is often the supposed target, along with altcoins such as Ethereum, Litecoin, and Ripple. Countless high-profile bankers have moved quickly to attack, mock, and dismiss the entire idea behind a cryptocurrency market and its associated valuations. Just last year, Jamie Dimon (JPMorgan Chase CEO) said that digital currency is nothing more than a “tulip bulb”, labeling cryptocurrency as a “fraud”. But, are these claims really all that they seem?
There is obviously a reason for the banking industry’s supposed dislike of Bitcoin and other cryptos. What they represent is a direct threat to the established system, with this being especially being true in the case of Ripple. Shidan Gouran (Global Blockchain COO) believes that Ripple is the true target of the bank sector’s aggression, not necessarily Bitcoin, “If big banks were to succeed in crushing one of these two currencies, Ripple would be it.” The reason behind the banking sector looking to target Ripple specifically is that it represents – at least in a sense – a legitimate competitor. It functions more like a transaction network than an actual currency, so banks are feeling unnerved over its rise in stature.
I believe Ripple offers a viable blockchain solution and an enormous amount of utility to banks. – Darren Marble
It’s not exactly common knowledge at this point, but there are signs that the banking industry is actually warming up to Bitcoin. The offering of futures, ETFs, and more shows that banks – in a roundabout way – are encouraging Bitcoin investment. Various banks also allow account holders to transfer funds to and from crypto exchanges, which in its own way speaks volumes. If banks were so hell-bent on bringing down Bitcoin, they surely wouldn’t allow the cryptocurrency to be so easily purchased.
Ripple’s use to the banking industry is also being routinely discussed, as some feel that an “if you can’t beat them, join them” philosophy could soon be adopted. Darren Marble (CrowdfundX CEO) recently said, “I believe Ripple offers a viable blockchain solution and an enormous amount of utility to banks.” It’s certainly a positive way of looking at things, as Ripple – in spite of having a target on its back – could prove to be very valuable to the banking sector.
Banks are openly investing in blockchain-based projects and solutions, so it wouldn’t make much sense for the industry to cancel out the likes of Bitcoin or Ripple. It’s going to take time for banks to truly become accustomed to the need for there to be a competitive cryptocurrency market, but the seeds are there. The overall shift in dynamic won’t happen overnight, but the image of banks actively trying to crush Bitcoin seems to represent just words at this point. Admittedly, from a currency standpoint, the challenges from the banking industry are strong as ever, but the adoption of the technology behind Bitcoin and other cryptos is another thing entirely!