Colorado Community Bank and ATM Facts

Shadow Banking

Do Cryptocurrencies Spell The End Of Traditional Banking?

There seem to be more and more companies than ever before that are willing to accept cryptocurrencies as payment for products and services. When companies such as Microsoft, Subway and Expedia are willing to accept Bitcoin, for instance, it may be a sign of changing times – but the question is – are these companies at the vanguard is a revolution in the way that money is treated – are traditional banks and payment methods now under threat due to the rising popularity of cryptocurrencies?

Firstly one should review exactly what these companies are offering in exchange for Bitcoin. Microsoft will allow customers to ‘top-up’ their accounts using Bitcoin, Subway accepts Bitcoin payments at some of their outlets and Expedia (one of the world’s leading online travel booking companies) will accept Bitcoin under ‘strict conditions. The common thread that runs through Bitcoin acceptance is the fact that these leading companies that will accept cryptocurrencies will do so in certain tightly controlled circumstances. To the layman at least it may seem as if these organizations are testing the waters to see if cryptocurrency payment is a viable option that would suit their strategic goals and business imperatives. Learm more from an ATM machine manufacturer.

Part of the attraction (and danger) for these companies when it comes to cryptocurrencies is that they can fluctuate wildly in value. They are not tied to physical assets. They are not dependent on a financial institution’s holdings – nor on a country’s balance of payments or macroeconomic performance (that said most currencies have no ‘concrete’ backing since the demise of the gold standard). Cryptocurrencies have value because they are used. It is the community of users who, by purchasing and through the pressures of supply and demand for cryptocurrencies that sets the value. A company that accepts Bitcoin, for instance, will be betting that the value will stay stable – or increase, a net positive on the books. However – at the same time they rely on the fact that they will, at some point be able to convert that currency into a cash – or use it to fuel the growth of their business. However – it’s a gamble. A wildly fluctuating currency is not a business-friendly one.

However, that said, cryptocurrency use is becoming easier. By way of example, there are Bitcoin ATM’s around where currency can be exchanged for Bitcoins.

Does the use of cryptocurrency spell doom for financial institutions? That is doubtful in the medium term. Is cryptocurrency a threat to the traditional banking system in the long term – the answer is yes. BNP Paribas, the French banking giant released a report saying that their experts believe that the technology behind cryptocurrencies could make’traditional’ banks redundant. There are a number of reasons for this. One of the most important drivers behind the future wide acceptance of cryptocurrencies by consumers is the fact that in the age of the Internet they have become disenchanted with the delays in processing times, in the age of the Internet consumers want ‘real-time’ service. Consumers are also disenchanted with the charges levied by banks and the opaque nature of the charges that are levied.

It is clear that cryptocurrencies such as Bitcoin are gaining ground when compared to traditional currencies and the technology behind these online currencies is a threat to traditional financial institutions. those institutions need to pay much closer attention to the wants and needs of consumers. Ignoring cryptocurrencies may mean that they are consigned to the dustbin of history sooner rather than later.

Shadow Banking

How Credit Cards, Online Banking, And ATM Machines Make Banking Easier

Modern credit cards, online banking, and ATM machines have really changed the way we live. Below, we will be going over some of the ways these things have changed the way we live and how they have made our lives much more convenient.

How They’ve Changed Our Lives:

1. Improved Accessibility.

The fact is, all of these things have made money much more accessible. With ATM machines, you no longer have to go to the bank branch to withdraw or deposit money. Nowadays, you can go to an ATM machine and get the money you need or even deposit it. Even more so, you can simply log into your bank’s mobile app and deposit a check directly through it. This has made various banking interactions much more accessible than ever. Online banking and credit cards have made it easier than ever to get access to the funds that you need because you can make quick bank transfers and with credit cards, you can make purchases without having to carry cash on you. Learn more at Goldstar atm.

2. It Enhances Safety.

As mentioned, with credit cards, you can avoid carrying cash on your person at all times. Along with this, you don’t have to constantly go to the bank to make withdraws or deposits. This alone can make it safer to bank because you don’t have to deal with the threat that comes with carrying a lot of cash around at a time. Also, using credit cards is going to make it safer to make purchases because your purchase will be protected and any unauthorized purchase is going to be handled by the bank. Whereas, if someone made an unauthorized purchase with your cash, you would have no recourse.

3. It Makes It Easier To Travel.

Another major way it has made our lives easier is through travel. Being able to use ATM machines and even credit cards while traveling eliminates the need to have to go to a foreign country with no local currency. It can even eliminate the need to travel around with expensive traveler’s checks which can make traveling unsafe. Having a credit card that you can use is going to protect you the most because you won’t have free cash on you that you can lose or get stolen. A lot of the credit cards that you can find on the marketplace charge zero foreign transaction fees which minimize the cost of using a credit card abroad. If your credit card is stolen during your travels, you will be protected from unauthorized charges which makes it much more convenient and safe to travel with these options. Also, having online banking will allow you to move money around to different accounts that can give you easier access to your funds while traveling.

Overall, there are plenty of different ways that ATM machines, credit cards, and online banking have transformed the way we live. In the end, it has made it much more convenient to get various banking activities completed and our money is now more accessible than ever before.

Shadow Banking

ATM’s and Credit Cards

Whether you’re arranging a large purchase or even a little one, you may wish to think about having a credit card rather than cash. If you use a charge card you get buy protection and it’s also easier to reunite matters. Credit cards also make it a great deal easier to purchase things without needing to deal with this much danger. Keep reading to learn the advantages of working with a credit card rather than cash.

You will never know when you’re likely to see what that you would like to purchase. If you do not have sufficient cash, you’re certainly going to need to use a charge card. You do not need to fret about how much you’re spending with the charge card and you don’t ever need to think about being unable to pay for something if you use credit card. Credit cards make matters considerably more suitable.

Raise Your Spending Ability

If you do not wish to be concerned about just how much cash you need to pay you would like to use a credit card rather than cash. If you’re making a big purchase, you absolutely need to place it on a charge card. Most individuals aren’t carrying around considerable sums of money. It is not safe to carry considerable sums of cash around with you since you might wind up getting robbed or worse.

The credit card enables you to make large purchases without needing to take care of money. It’s a whole lot simpler to make the purchases you need when you select the ideal credit card.

Among the greatest things about using a credit card is that you obtain a high degree of protection once you use a single. You receive all the coverage you want. If something goes wrong with what you’ve purchased it will be a great deal simpler to receive your cash back.

In addition you often become additional insurance when you purchase something on a charge card. Any fraudulent charges will be returned too. You do not have some security when you utilize cash, which makes it rather dangerous. If something goes wrong you will not have the ability to get your cash back. In case you have any difficulties with your purchase you’ll receive help in the charge card company, which may be a massive help if something goes wrong.

Provided that you opt for a rewards card you’ll be able to begin earning rewards on any order you make. It is possible to readily redeem your wages for money back, merchandise and much more.

There are various reasons to use a credit card rather than cash. When you utilize the credit card you’ve got numerous added benefits. Leave the money in the home and also use a charge card instead.

Shadow Banking

Shadow Banking – Significance, Functions, Advantages & Disadvantages

Competitive pressures require banks to carry out more threats and, if possible, make a higher rate on their financial investments. This is since the shadow banking system offers a totally free pass to the banks to prevent any policy. The shadow banking system is stated to decrease and grow in size.

What are Shadow Banks?

To comprehend shadow banks, we should initially understand banking. In other words, banks accept brief-term liabilities and provide out longer-term loans.

The Functions of Shadow Banks

  • The shadow bank should provide brief term securities and utilize the earnings to purchase longer-term possessions. A lot of these shadow banks are implicitly or backed by industrial banks and for that reason, command the sort of self-confidence that is needed to offer securities in the federal government markets.
  • The shadow bank needs to utilize additional utilize while making financial investments. These financial investments can be made by raising cash from other organizations.

Advantages of the Shadow Banking System

There is just one substantial benefit to having the shadow banking system i.e., no guideline. Considering that the banking market is so controlled, this benefit is vast enough to balance out numerous downsides by itself.

No policy on the cash raised by offering securities permits the shadow banks to take as much threat as they want to without defaulting on their responsibilities. Compliance treatments and reports which cost countless dollars in addition to disturbance of operations are no longer needed.

Disadvantages of Shadow Banking System

Distressed Sale:

Shadow banks purchase long term properties and fund them by offering brief-term securities. If financiers end up being cautious about a bank’s health, these long term properties have to be liquidated with immediate impact. This develops a scenario of distressed sales.

Restore Credibility:

The 2008 disaster exposed a lot of links between the business banking system and the shadow banking system. This is due to the fact that when these shadowy banks began folding, they were frequently bailed out by industrial banks. Business banks would do so to keep their credibility in the cash market so that they can continue their operations in the future.


September 2020
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