Israel PM Netanyahu believes bitcoin will replace the traditional bank

On December 12, Prime Minister Benjamin Netanyahu openly commented on the future of banking, seen through a youtube video. He believes that blockchain technology will replace traditional banks as a result of bitcoin’s growth this year.

With governments and Central Banks around the world concerned over the unstable growth of digital currencies, Netanyahu, a prominent world leader, expresses his honest opinions on the future of banking. The Prime Minister states in Hebrew: "Is the fate of banks that they will eventually disappear? Yes. The answer is Yes. Does it need to happen tomorrow? And do we need to do it through Bitcoin? That’s a question mark."

When Netanyahu spoke about the role of banks, he saw that their purpose, to ensure valid and safe transactions between two parties, could be disrupted by the blockchain.

Blockchain, the underlying technology of cryptocurrency, makes it possible for people to transact directly. The decentralized technology itself, rather than a centralized institution, ensures that transactions between people are valid and secure.

‘The truth behind what I just said is what’s propelling Bitcoin upwards.’ The blockchain can perform all the functions of a bank without the need for an inefficient central institution who takes a transaction cut every time.

Although Netanyahu sees the importance of bitcoin and blockchain technology, he is doubtful of Bitcoin’s longevity into the future as:" [T]here’s nothing like this, that will continue rising at this rate. It can’t happen."

Rami Shechter, CEO and founder of Vanywhere, a blockchain-powered peer-to-peer skill-sharing platform, says that "we agree with Netanyahu's vision regarding the disappearance of banks in the future, possibly due to cryptocurrency. We believe that the biggest news about cryptocurrency in relation to banks is the reduction of fees. People have had enough with middlemen and third parties taking cuts of every transaction."

Moshe Joshua, chief product officer for Blackmoon Crypto, a platform for asset managers to create and manage tokenized funds, says: "Now there's someone who gets it! Selling money? That used to be the domain of the professionals. Now, even heads of state have an opinion! Blackmoon is so glad to know that [Netanyahu] can see the need for automated trust networks and a disintermediation of the middleman. "