Bitcoin is Beating Big Money: Smaller Financial Platforms Cash In on Crypto While Big Banks Miss Out

Big banks and traditional financial institutions who stand to lose out the most from the blockchain revolution remain opposed to the growth of decentralized currencies - but recently released data demonstrates that slow-moving centralized financial structures are slowly being eroded by distributed ledger based technology, hinting toward the inevitable overthrow of the global financial hegemonic paradigm.

Data recently published by Diar shows that large-scale financial institutions and banks are pushing against the inertia of blockchain-powered financial systems and cryptocurrencies, which is beginning to have a negative impact on their position within the competitive banking market.

The cryptocurrency ecosystem, while fundamentally at odds with fiat currency, still relies on traditional banks and payment gateways in order for market participants to exchange crypto-assets for real-world goods and services - the list of companies, retailers, and platforms that accept cryptocurrency is growing, but global adoption is still at a nascent stage.

Mainstream banks are reluctant to provide cryptocurrency exchanges and other blockchain finance platforms with banking services.

Some have taken an actively hostile stance toward the cryptocurrency market, such as US banking giant Wells Fargo, who recently banned Bitcoin and crypto debit card purchases via credit cards.

While large banks may avoid the cryptocurrency market, smaller financial institutions have taken the opportunity to capitalize on the rapidly growing blockchain ecosystem.

There are currently just four banks in the United States that provide banking services to cryptocurrency companies: Metropolitan Commercial Bank, Silvergate Bank, Cross River Bank and Signature Bank.

It's becoming clear that mainstream banks can no longer ignore the dramatic financial impact of the cryptocurrency ecosystem.

Venture capitalist Spencer Bogard recently commented on the rapid growth of the crypto market the influence it exerts on traditional finance in an interview with CNBC:. "Most of these banks have heard about the numbers or seen the numbers that companies like Coinbase and Binance are putting up. There's a real risk that some of those companies could overtake some of Wall Street's biggest banks if they don't get in the market."

The inevitable decay of the centralized banking system as a result of the proliferation of blockchain technology is even evidenced by studies performed by banks themselves - a Citi GPS report entitled "Digital Disruption: How FinTech is Forcing Banking to a Tipping Point" identifies blockchain technology as a key thread to custody and back-office banking services, rendering them "Obsolete."