[This article was written by Anica Oaks.]
With the emergence of cryptocurrencies such as Bitcoin and many others, many people within the finance industry are starting to believe banks should take a more active role in this increasingly popular form of currency. One of the ways this may happen is through the leveraging of decentralized finance since this can potentially offer many advantages to you and others who may be interested in exploring cryptocurrency options. As to why banks should position themselves in this manner, here are some benefits you may reap from this strategy.
Like many people who do business with banks, you likely wish there was a bit more transparency regarding your transactions. By leveraging decentralized finance, this could become a reality. As more banks would begin to use public ledger blockchain technology, you could have quicker and easier access to your transactions.
If you have waited on money to transfer to or from your bank, you know the delays that seem to always occur can be very frustrating. However, through the leveraging of decentralized finance, assets can be moved much quicker and more securely. Also, should you be involved in decentralized finance borrowing, banks that embrace this technology would be able to update interest rates essentially in real-time, which could let you obtain lower interest rates and save money.
When banks decide to leverage decentralized finance, you could see an increase in the services being offered to you as a customer. This could be very important if you were in the process of trying to obtain a mortgage when buying a home. In this example, you could buy your home using cryptocurrency, providing you work with a seller who agrees to the use of this currency. By having your bank working with you in this manner, homebuying could potentially become a far less complicated experience.
Asset Values Remain Higher
Finally, if more banks opted to leverage decentralized finance, this makes it almost impossible for a central bank to manipulate interest rates that impact the national and international economy in numerous ways. When this occurs, your financial assets can suffer an immediate drop in value. However, by leveraging decentralized finance, manipulating interest rates and the value of the currency would likely rarely if ever happen.
As more and more people begin relying on the use of cryptocurrency to make bigger and bigger purchases, chances are you will begin to see more banks begin to leverage decentralized finance to meet the needs and expectations of their customers.
Anica is a professional content and copywriter who graduated from the University of San Francisco. She loves dogs, the ocean, and anything outdoor-related. You can connect with Anica on Twitter @AnicaOaks. She recommends this company when it comes to decentralized finance borrowing.