Ever since Bitcoin drove the cryptocurrency movement nearly a decade ago, the talk as been about blockchain usurping fiat currencies in day-to-day life. The most optimistic amongst crypto users predicted this would happen years ago, but it never did. In fact, we are still waiting for Bitcoin to really break into the mainstream.
In 2020, there have been signs that the commercialization of Bitcoin is underway. Sure, replacing traditional currencies remains something for the future, but it’s clear crypto is not being more widely embraced.
Before getting to the growing adoption of BTC by financial institutions, it is worth noting the transformation the cryptocurrency has had in other areas. Bitcoin is becoming more attractive to regular consumers, driven by industries finally backing blockchain. Perhaps the most notable is the online casino industry, which now accepts BTC for payments, with some venues solely dedicated to crypto.
The rise of the Bitcoin casino has shown that cryptocurrencies can play a major role in traditional sectors and alongside fiat currencies. An industry based on technology; the online casino realm has shown how BTC can bring benefits over traditional payment methods.
So-called Bitcoin casinos only allow users to deposit and withdraw in crypto. Because BTC is decentralized, the money never passes a middleman financial organization. In other words, online casino transactions become more secure and money clears almost instantly.
Many industries are likely taking notice of the trail-blazing online casino sector and understanding how they too can implement crypto into their output.
In financial institutions, the predicted transformation and evolution from age-old processes has never really happened. In fact, many investors have chosen to ignore Bitcoin. Those on the outside could be forgiven for thinking what all the fuss was about.
However, in 2020, the ongoing investment in BTC and blockchain in general has started to permeate into banks. However, financial institutions remain cautious and are still unwilling to move wholesale behind blockchain, instead favoring taking elements of the process and baking them into new services.
For example, Italy’s banking sector has widely adopted Spunta, a blockchain solution that helps banks organize balances amongst each other. Sure, that’s about as small a baby step as possible considering it is just one blockchain element and there are bigger economic players in Europe (UK, France, Germany).
Still, it is a step in the right direction and is following some adoption of blockchains amongst U.S.-based investors, such as JPMorgan.
Blockchain adoption is merely the first stage of wider adoption of crypto across the banking sector. It is good that the change is underway, but it’s also clear those early predictions were way off the mark. BTC has never quite revolutionized banking in the way many thought it would… or at least not as quickly as they thought.
That said, there is still time and as we move increasingly to a cashless financial climate, it seems likely blockchain driven currencies will play an increasingly important role.