Over the years, the relationship between banks and cryptocurrency has been largely a cold one. Most banks, especially central banks, have been cold at the idea of embracing digital currencies even if that means issuing a central bank-backed cryptocurrency.
But Nick Szabo, a highly respected cryptographer who many believe could be Satoshi Nakamoto, has positive views regarding the relationship between banks and cryptocurrency in the next 12 months.
Speaking at the Israel Bitcoin Summit held at Tel Aviv University, and which is the first of its kind in Israel, Szabo is of the view that the connection between banks and cryptocurrency is marked to get stronger before 2019 ends.
Reason? Because banks, especially central banks, will shift their focus from stacking gold to stacking cryptocurrencies such as Bitcoin.
According to Nick:
There’s going to be some situations where a central bank can’t trust a foreign central bank or government with their bonds for example. One solution that’s been developed is to have the Swiss government hold it for you – that’s not a trust minimized solution. The Swiss government itself is subject to political pressures and so a more trust minimized solution is cryptocurrency.
The cryptographer continued to observe that the gold reserves that central banks have been relying on are “physically vulnerable.”
Apart from the relationship between banks and cryptocurrency, Szabo also noted that countries with a history of conflict are more likely to increase their reliance on cryptocurrency this year.
That’s not all:
Governments which badly mismanage their fiat currencies, though that could include every country in the world, can also expect to see more of their citizens turn to cryptocurrencies.
Do you agree with Nick that banks and cryptocurrency will have a warmer relationship in 2019 than ever before?
Let us know your thoughts in the comments section below.