Banks will soon walk on a tight-rope
There are two things that could mark the end of banks: DeFi and Central Bank Digital Currencies (CBDCs).

DeFi is the decentralized form of banking. They're done on a P2P basis and banking activities are done through smart contracts.

Then there are CBDCs, which can allow central banks to cut out the intermediaries and become the primary place where people do banking.

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So far, these two projects are in their early stages of development.

Central banks have a strong incentive to create a CBDC and take over retail banking operations in their respective countries. Being the lender of last resort, central banks are the ones having to bear the losses that come from bailing out the banks for their reckless actions. Also, from the federal government's standpoint, by making the central banks profitable, their treasury department can receive more revenue. This is despite the fact that the central bank and the federal government are independent of each other.

As for DeFi, those attracted to lower fees and faster transaction/settlement times are interested in adopting this new form of banking. There can be many scandals in the crypto space but at the end of the day, those that choose to do their crypto business through DeFi exchanges are going to be protected from these scams as DeFi gives users ownership of their assets while CeFi gives the intermediaries ownership of your assets.

It will be interesting to see what banks will do as the threat of CBDCs and DeFi comes roaring in. Banks can adopt blockchain, but they will struggle to compete against a central bank or a DeFi platform because they can't afford to lower their fees to the depths that central banks and DeFi exchanges can afford to go to.

To end, BowTiedBull was the one that predicted that banks are zeros.
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