Hardly a day goes by without another bank or financial organization heralding the blockchain as the wave of the future while saying bitcoin is falling by the wayside. Do veteran cryptocurrency observers find something a bit strange in this? Can you really have the blockchain without cryptocurrency?
Rupert Hackett, community manager of Australia-based buyabitcoin.com.au, tackles this question head-on in an opinion piece in Venture Beat. He observes that initially, banks and financial institutions ignored cryptocurrency since they recognized it as a competitor to traditional money and claimed (incorrectly) that it would simply go away. As time progressed, bitcoin expanded. Ignoring the disruptive technology wasn’t going to work.
Banks Respond To A Challenge
Hackett claims the reason banks are now so interested in blockchain technology is they see it as a way to respond to the competitive threat that bitcoin poses to traditional money. While many financial institutions now claim to be interested in blockchain technology but not bitcoin, they ignore the fact that you need a cryptocurrency to make a blockchain. Hackett postulates that hyping the blockchain while denigrating bitcoin is an effort to blunt bitcoin’s challenge to traditional currency.
Banks and the national governments that regulate traditional currency recognize