“Change is the law of nature”- This well-known proverb has been the channelizing force behind numerous innovations as well as many closures in the name of upgradations in technology. Cryptocurrencies, when launched, were primarily focused on the ifs and buts of the financial arena. As time evolved, some of the brightest minds from the industry started putting in their efforts in the development of the digital currency niche, which eventually led to its evolvement as one of the strongest pedagogies in the new technologically globalized world.
Banking has always been a hot-shot favorite of the crypto domain primarily because it serves as the backbone of an economy. The current banking sector runs on the fiat currencies, which are operated and managed by the central banking authorities of countries from around the world. On the other hand, cryptocurrencies work as virtual currencies and are traded through registered exchanges. The present era has seen an increased level of scrutiny and stringent control over cryptocurrencies by regulatory watchdogs from around the world.
Lucrative profits, high levels of secrecy, maintenance of unanimousness, reliability, and safety- all are the primary reasons for the increased popularity of digital currencies in today’s time. These virtual currencies have been successful in giving stiff competition to the traditional banking systems, which still rely on old procedures and time-consuming pedagogy. Interestingly, leaders from the industrial space have started showing interest in bridging the gap between cryptocurrencies and the banking sector.
Google, the ultimate search engine giant, has also put its first step in the banking industry, and this has created quite a lot of noise in the digital currency space. As per the latest reports, Google has collaborated with US-based banking giant Citigroup and a California credit union to introduce the world with its native ‘smart checking’ bank accounts. Code-named as Cache, the account facility will be available through Google Pay app. “Our approach is going to be to partner deeply with banks and the financial system,” quoted Caesar Sengupta, Google executive. The solution is likely to go on floors sometime in the coming year.
Unfortunately, where some are going ‘ga-ga’ over this announcement, the crypto enthusiasts have already addressed it as ‘bitcoin killer.’ The people who have shown support to Google’s act stated that this would aid the banking niche in a big way. The move is likely to induce more customers into the network, thereby increasing the volume of customer deposits substantially.
Betsy Graseck, who works as an analyst at Morgan Stanley, stated that it is “An opportunity to deliver value to corporate customers and pick up incremental checking accounts as well is a good business decision.”
Amid all this support, the news has seen a considerable backlash from the crypto industry too. The crypto enthusiasts opined that it has now become important for the digital currency developers to pull up their socks and up their game if they aspire to survive in the market. Bitcoin and other major coins have faced a major setback in attracting new customers because of the unfavorable price fluctuations in recent times. Thus, Google’s entry in the banking sector has put pressure on the crypto industry to enhance the user experience and the current pedagogies.
The tech leader has been in a constant urge to shake the digital currency space by kicking it off from the ground using quantum mechanics. Interestingly, during the start of the year, Google took the crypto domain in a blow via the reports claiming it to have achieved the quantum supremacy, which has the potential to rule out bitcoin’s cryptography rendering it useless.
It will be quite interesting to see how cryptocurrency developers will rule out all possibilities of failure and emerge with new unprecedented solutions that have the potential to take the industry to new horizons despite stiff competition from the tech biggies like Google.