One of the reasons for the hard pushback against cryptocurrencies from some federal agencies in the US is the threat Decentralize Finance poses to the whole banking model. Transactions are a huge piece of the pie for huge financial institutions making a profit on every transaction handled by them. While many people do not understand the scope of the problem, crypto enthusiasts are among those seeing the truth.
Banks are very expensive, you just don’t see it
There are two reasons why many people do not care that much about the cost of sending money. The vast majority of people send money to someone via bank transfers relatively rarely and do not notice the compounding cost that piles up over years. At the same time, many people are using services like Western Union and PayPal considering them cheaper and more convenient. Even these platforms may have relatively high fees.
When it comes to crypto, you can use something like TRON and send money for 0.01% to just cover expenses of the net for upkeep and validation. The same can be said about several other blockchain networks offering financial services to their users.
Banks provide a valuable service, but they are also predators that want to squeeze every bit of profit from each transaction. It means that they do not want cryptocurrencies to take over the world because the efficiency, scale, convenience, and price of crypto transactions will drive banks out of business in a blink of an eye if more people start using tokens to send money.
During his testimony in front of the US Senate, the CEO of JPMorgan Chase Jamie Dimon called all tokens Ponzi schemes and said that no one should invest in them. However, his attack misses the target.
It is not about investment, it is about utility
Decentralized financial platforms are providing a service that can be used to significantly reduce expenses related to transactions and sending money across the globe. It is not about investing in cryptocurrencies. This industry solves an issue that allows banks to make money. Big CEOs are afraid that their income will vanish once people switch to more efficient and cheap crypto payments.