Bernstein is known for its financial research and specializes in the field of regulatory analysis and projections. Gautam Chhugani is an analyst at the firm who has recently shared some insights on the matter of the future of banking.
He shared his remarks in the context of the recent banking crisis that has taken the US and other countries in its fold. However, the period of pressure proved to be ideal for Bitcoin growth as many commercial and individual investors seek refuge in Bitcoin as a hedge.
Speaking on the matter, Chhugani has predicted that the world is rapidly headed toward digitization and a massive inflow of information. The analyst from Bernstein has also noted that there were considerable tensions among financial stakeholders as per social media analysis on account of the ongoing traditional bank crisis.
He noted that in the current age of the internet, the flow of information is fast and unrestricted. He claimed that the fast exchange of information can lead to hyper-speed bank runs.
He noted that long-standing traditional banks such as Credit Suisse also got caught up in the hyper-information sharing facilities. He noted that in the current environment, traditional banks are facing a threat that they never faced ever before.
Therefore, in his opinion, more banking enterprises are soon going to switch to the FedNow platform which is a new program set to launch by the Federal Reserve before the end of the current year.
This digital payment portal is going to enable 24/7 payment facilities for bank account holders. He also noted that rapid and unrestricted flow of information can be offset by the use of cryptocurrencies.
He noted that the feature of crypto that compels the investors to hold these assets for longer durations is a valuable and simple solution that can bring more stability to the financial sector. He also claimed that soon enough all the stakeholders who have considerable trust in USD can switch to Bitcoin.
The Need for Financial Instruments with Value, Safety and Stability
Chhugani claimed that at present investors are not only looking into investment products that can warrant their a store of value in the future. He claimed that the stability of the financial instrument has become one of the most crucial factors for investors at present.
Therefore, there are several Bitcoin maximalists and believers who argue this point as the main reason for upcoming hyper-bitcoinization.
The report penned by Chhugani also noted that the importance of decentralized financial systems is going to have real-world application and utility in the current scenario. The investment banking enterprise also pointed out that DeFi is going to become a DYI banking feature with traditional banks shifting into it gradually.
DeFi also offers important options for the users such as unrestricted and instant liquidation of their positions and self-banking options. Investors can switch to stablecoins to preserve the total value of their profits or revenues.
The report concluded by claiming that banking is going to transform into real-time operations and grant greater control to the individual than ever before.
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