On December 12th, Isaeli Prime Minister, Benjamin Netanyahu made a statement about the future of Banks in Israel and the rapidly developing world of cryptocurrency. He alluded to the fact that the country’s traditional banks could easily, soon be replaced by blockchain technology.
Nota that most governments and central banking systems around the world are already concerned about the unstable growth of encrypted currency. The Prime Minister, one of the first world leaders to do so, recently published a video on Youtube commenting on cryptographic currency. He also made claims about the effectiveness of the Bitcoin system in the financial markets and its continued growth.
Could Banks Disappear?
For the Prime Minister, the disappearance of traditional banks is only a matter of time. Which is exactly why he states so confidently that the bank’s money system is old-fashioned and will soon be replaced by this newer technology.
Yet, any real course of action has yet to be seen. In his video, the Israeli leader clearly answers yes to the question about whether the banks will disappear. Because of this statement, another question came up about whether the cause of their disappearance will be the cause. His final response on the topic boiled down to him being uncertain.
Bitcoin in Israel
Like many countries around the world right now, Israel is currently feeling the pull of cryptocurrency. Local media platforms can’t stop reporting about Bitcoin’s daily price variations and the new overnight millionaires.
Israeli citizens are enamored with this new idea of making money and the lineups are already present in front of Bitcoin ATMs in Tel Aviv. The Prime Minister, being an MIT graduate and former economic consultant for Boston Consulting, is not impressed with this frenzy. Netanyahu, therefore, fully understands the value and impact that blockchain technology could have.
The Prime Minister on Bitcoin and Banks
According to the Israeli Prime Minister, the bank’s main objective is always to ensure valid transactions and provide the best security for both parties involved. Both of which, could easily be improved with the use of blockchain technology.
In the 70-second video, the country’s leader also claimed that banks are already considered an intermediary since Bitcoin’s decentralized nature is becoming a much more interesting idea. He said that his opinion on the topic was the exact same force that has been driving cryptocurrency’s ever-increasing potential.
Apparently, blockchain technology has what it takes and could easily perform all the functions of a traditional bank. Without needing to resort to an inefficient central institution, they can avoid unnecessarily complicated transactions.
The Crypto Industry’s Reaction
Most of the cryptographic community agrees with the Israeli Prime Minister. Rami Shechter, CEO and founder of Vanywhere, a peer to peer sharing platform, believes that cryptocurrency will soon annihilate the banking system.
According to some, the main advantage of this new, digital money is the reduction in transaction costs. Allegedly, clients are tired of the middlemen taking percentages of their money on each one of their transactions.
For Adam Perlow, CEO and founder of Zen Protocol, Netanyahu is right. Unlike banks, Bitcoin’s technology offers a more attractive solution at reducing counterparty risks and provides an entirely more effective system.