By: Hugh Sifu
Why does our banking system need to change? It’s a topic that seems to capture a lot of people’s attention these days.
It is because our government is running amuck with the fact that we are a financial reserve currency in a fiat monetary system? Quite possibly, but for the sanity of all, I don’t even want to consider them for this article. At the end of the day, the people are the ones who built the banking system and they are the innovators who will change it. I mean, they already have if we’re being honest.
Unfortunately, a few politicians whose attention is best served elsewhere and who are also largely uneducated in this new innovation are the ones attempting to shape it. I won’t go into the political side, I’ll just leave it with this. Individuals have created a system that functions safely, more effectively and cheaper without any government intervention to this point. Crazy to imagine such a thing is possible!
So, rant avoided, why does our banking system need to change? Is it because there is a new power and we need to keep up with them? Maybe, it definitely wouldn’t hurt to stay ahead of the curve, or at least with it.
Is it because the banks have too much control as to who gets the loans and are willing to risk assets with corporations but not with potentially harder working individuals? Well, they no doubt have too much control on who can borrow money, there’s no debate there.
Is it because when you sign up with a bank, you effectively sign away all your money for them to do as they please with it? Don't get me wrong, you're insured by the government up to a certain amount, but it's technically the banks money. I mean, we all know a system where you safely hold your own money outside of a mattress without a bank is impossible.. or wait..
It is because we continue to have fraud scandals in our banks? Let’s not forget, the main reason for the existence of a bank is to act as a middle man and ensure everyone’s money is safe. You know, because it is our money. Yet we continue to have scandals because they don’t act solely as the ledger they’re supposed to. The most recent example I can think of is Wells Fargo, read up on that as you please, I’m sure you’ll find some logical reasoning to the outcome of it all.
However, one of the main reasons we shouldn’t stop or restrict innovators via these lawmakers who don’t understand the innovation itself is because of one of the most simplistic reasons I can think of. I've chosen to focus on this reason not because the most important, but because it's the least "political". Honestly it's blatantly ridiculous that it hasn't been addressed still today. Not to mention it's probably affected everyone at one point or another.
When I want to transfer and move my money from one account to the other (you know, MY own money in MY account to another one of MY accounts that is also MY own money (..aka it’s all mine) on a Sunday morning, I don’t want to have to wait until Tuesday for my transfer to be completed.
So, why at the most basic of reasons do we need to change our banking system? IT’S BECAUSE THEY’RE SLOW!
Let’s be honest, it’s really because they’re lazy too. They don’t care to build out a system that gives us easier access to our money. Banks don’t have R&D (Research & Development) departments. No one can blame them either, they’re only there to keep my money safe, and give it to me when I want. While they’re arguably doing one, they’re hardly doing the other. Arguably because inflation means my money is slowly degrading into fugazi. Hardly because of what I’m about to explain.
Why if I want to transfer money from one account to the other on a Sunday so I can spend my money with my rewards debit cards online, do I have to wait until Tuesday? Well, because there’s a public holiday on Monday of course! By the Way, Happy Martin Luther King Jr. Day to everyone in the US! Honestly though, why should I even have to wait until a Monday on days that aren’t bank Holidays (which there seems to be one or two a week) when we have a better system? If it’s my money, shouldn’t I be able to transfer and do what I please with it in-between accounts of my own ownership? I mean even if I’m paying someone to keep it safe, the online banking systems ledger is almost entirely systematic anyways.
If this was a digital asset like bitcoin or one of the many others that I was trying to transfer on a Sunday, I’d have already received it before I even started to write this article. Because ten minutes after I realized how long I had to wait for my transfer to go through, I decided to write this article. To further prove my point, I’ve just taken three minutes and twenty-six seconds (yes, I timed it) to transfer $9,500 from the US to Spain (where I’m currently living) via my different crypto accounts. So I’ve successfully sent almost 10k in a matter of minutes via blockchain technology, yet I’ll have to wait over 50 hours for the banks to process a transfer for $200.
While the fees for certain crypto transactions could most certainly be a little lower, they clearly have a better system. A system that doesn’t allow the banks and the fed to play casino with our money. A system that is more efficient. A system that has fixed the double spending issues (for the most part). A system that gives hard working people loans instead of hoarding it solely with the previously established companies and corporations. This isn’t how economies grow, this is how they die.
If the banks decided to operate on the weekend, or holidays regarding online transfers of what is in reality already digital assets, I’d be pleasantly surprised, but I’ll also have got something that should’ve been implemented years ago.
When did our society begin hindering growth in the areas which we innovate?
Luckily in our existing banking system, we have companies like Wise who are already innovating alongside our existing system. They are amazing and I use them all the time for transferring money abroad.
Speaking of just that however, with more and more migration happening around the world and more people sending money to families back home, in other countries, and more people traveling and living abroad while globalization continues, where do you see the future of money heading? I mean currently we have banks that don’t even allow people to even sign up for an account even if they have money. Most of the world is underdeveloped and the little money that circulates in these parts of the world is accumulated almost entirely by the banks, who are not willing to allow those who have some money a safe place to store it.
Most banks in developing countries around the world allow a majority of their citizens access to bank accounts last in the process of developing those countries. That means, once a country has finally crossed some grey line from developing to developed, then and only then those banks will consider allowing lower class citizens to even open an account with them. However, anyone can sign up for a crypto account of any kind, today! Anyone can send money hassle free and bank free with the middle man being that of the innovative technology (blockchain technology) to securely keep an eye on your money.
There’s a better way to exchange money. It’s a fairer way too. Unfortunately some of the people we elect are trying to stop this innovation, all while they don’t even understand it. Some concerns are valid and should be considered by the innovators, of course. Some concerns are propaganda and should be laughed at. Governments, Banks, please step aside while WE fix your wrongdoing of the centuries past. You can come back once you’ve had your timeout, that is, if we need you. However… with our technology unimpeded, there’s a good chance we won’t.
-Courtesy of Toarc United