The outpouring of support for Bitcoin off the back of its price spike has been astounding, with a few important political and financial figures even stepping up to talk about its progress. The latest name to discuss Bitcoin’s potential – coming somewhat out of left field – is Israeli Prime Minister Benjamin Netanyahu. He stated that he believed that Bitcoin could eventually render banks obsolete, as he feels that the trustless foundations of Bitcoin – along with its notable growth – has the potential to make the cryptocurrency a true banking phenomenon.
Through a video published on The Marker, Netanyahu put forward his belief that Bitcoin has true untapped potential. This belief carries over into his thinking that it has the power to displace banks, outdating them and replacing them over the long-term. He said, “Is the fate of banks that they will eventually disappear? Yes. The answer is yes. Does it need to happen tomorrow? And do we need to do it through Bitcoin? That’s a question mark.”
Bitcoin could eventually render banks obsolete.
While it’s evident that Netanyahu has faith in Bitcoin as a cryptocurrency, it’s clear that he has little faith in the current banking system. Believing that they were formed and remain operational to ensure that transactions between two individuals or parties are secure and valid, the argument is that this won’t be an appropriate system in the future. Banks continue to exhibit control on how cash is spent, reaping the benefits as a result, largely at the expense of the customer. Blockchain represents a different proposition entirely, as the technology that stands behind Bitcoin allows for any number of individuals to transact between each other directly.
This represents a decentralized technology that pulls transactions away from centralized institutions, ensuring validity and security as a result. “The truth behind what I just said is what’s propelling Bitcoin upwards”, Netanyahu said.
Netanyahu’s acknowledgement of Bitcoin as a financial power-product is sure to have plenty of financial institutions talking, as it’s rare for any political leader to make such a bold statement. However, he did express a certain degree of doubt when it comes to Bitcoin’s ability to keep up its current rate of growth, “there’s nothing like this, that will continue rising at this rate, it can’t happen.”
What’s surprising – possibly even borderline shocking – is that most political leaders have largely remained silent on the rise of Bitcoin. Putting his head above the parapet and seemingly backing Bitcoin publicly, most tend to agree that Netanyahu’s words can only help further Bitcoin’s case for mainstream acceptance.