Since the introduction of cryptocurrencies in the global financial landscape, most users and people across sectors are split between the importance of central banks, and the idea of decentralized networks.
Following the fact that cryptos recorded major growth over the past few years, institutions like JP Morgan and Facebook have also entertained the idea of developing their own cryptocurrencies to enter the blockchain ecosystem.
Anthony Pompliano, a major Bitcoin proponent who constantly promotes the cryptocurrency ecosystem, made the news after he claimed that banks could soon be replaced.
However, Bruce Fenton, CEO of Atlantic Financial Blockchain Labs, begged to differ. He tweeted that the idea of “being your own bank” was dangerous, while stating that banks were targeted from an economic standpoint.
“In my career I’ve handled billions of dollars & never worried about theft or personal risk. With a tiny fraction of that in crypto you are a huge target. That’s a risk I won’t take.”
Fenton stressed that he was not completely “pro-bank.” However, people had been depending on third-party custodians for a long period of time now and it was not going to change overnight, he said.
Additionally, Fenton stated that it would be a “bigger problem” if a large number of people started holding Bitcoin, tagging themselves as targets. He highlighted the rise cyber criminal activities to make this point.
The European Central Bank recently echoed the same line of thought regarding crypto-assets and tweeted,
“Crypto-assets like #bitcoin are increasingly popular but are volatile and speculative, and they are not currencies. New technologies like #blockchain enabled their emergence.”
However, Twitter user @BrianLockhart responded in favor of Bitcoin and stated,
“I’m worried about Fidelity [or any custodian] freezing an account or denying me access to my assets for whatever reason. I’m not a criminal, but sometimes banks do funny things. Bitcoin offers me the ability to eliminate that risk entirely.”
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Biraajmaan is an engineering graduate who is exploring the ever-changing crypto verse while traversing his passion for cryptocurrency news writing. He is a Chelsea fan and a part-time poet and does not hold any value in cryptocurrencies yet.