Cryptocurrency is not the enemy of banks: the evolution of finance rather than a revolution

Source: TokenPost Original Title: [Editorial] Cryptocurrencies are not the enemy of banks… Finance is on a path of ‘evolution,’ not ‘revolution’ Original Link:

Are cryptocurrencies a tool of ‘revolution’ to destroy banks, or a financial ‘evolution’ process that addresses existing financial system issues, enables coexistence, and offers better options? Regarding the relationship between cryptocurrencies and banks, people still often use terms like ‘war.’ This reflects a zero-sum mindset—believing that one must disappear. However, this view oversimplifies the changes in the financial environment. The emergence of cryptocurrencies is not about overthrowing banks but rather revealing long-ignored issues within the current financial system.

The banking-centered financial system has accumulated stability and trust, but it also has obvious limitations. About 2 billion adults worldwide still lack bank accounts, cross-border remittances take 3-5 days, and the average fee is as high as 6%. In complex processing workflows, costs become opaque, and control over assets is held by third parties rather than users. These structural problems have long been accepted as ‘inevitable inconveniences.’

Cryptocurrencies have emerged in this context. Instant settlement, global accessibility, relatively transparent cost structures, and programmable financial tools—these are areas that the existing system has not fully provided. But this does not mean cryptocurrencies can completely replace the role of banks. In mortgage loans, corporate financing, and transactions involving legal responsibilities and protections, banks’ functions remain crucial. The core issue is not about substitution but about expanding choices.

Banks are also not exempt from responsibility. Slow progress in innovations to improve remittance speed, cost, and accessibility has, to some extent, attracted new competitors. If cryptocurrencies are merely defined as external threats, it ignores the fundamental reasons for change. That’s why some banks have begun offering cryptocurrency custody services and experimenting with blockchain-based payment infrastructure and stablecoin applications. Financial institutions that embrace change will gain competitiveness, while those clinging to the status quo will inevitably be eliminated.

The role of governments and financial regulators is equally important. Unconditionally suppressing or laissez-faire approaches to cryptocurrencies are irresponsible policies. Regulatory gaps could threaten financial stability, while excessive regulation might push innovation overseas. What is needed is a regulatory framework that manages risks while allowing choices and competition. This tests regulators’ ability to oversee financial evolution.

The future of finance will not be a world where banks disappear. More likely, it will be a structural reorganization where users choose between banks or cryptocurrencies based on the situation. Cryptocurrencies have advantages in instant international remittances, while long-term loans and asset management remain strengths of banks. If this trend cannot be managed, chaos will ensue; if managed well, it will create competitiveness.

The ongoing change is not a revolution to overthrow the system but an evolution toward better tools and more choices in finance. How to institutionalize this direction will determine the future of Korea’s financial industry.