Just ten years ago, it was hard to imagine paying not only with cash or a card but also with digital assets. Today, digital currencies – from cryptocurrencies to state-backed projects (CBDCs) – are becoming part of reality. This raises the question: what will happen to traditional banks if money goes fully digital?

Traditionally, banks have performed three key functions: storing funds, processing transfers, and issuing loans. With digital currencies, some of these tasks can now be handled directly, without intermediaries. For example, blockchain allows money transfers in minutes without costly international fees. For customers, this is convenient; for banks, it’s a challenge.

Does this mean banks will disappear? Hardly. More likely, they will adapt. Banks have trust, infrastructure, and regulatory experience – something new technologies often lack. They can act as a bridge between central bank digital currencies and people, help businesses adopt new payment methods, and offer secure storage for digital assets.

Banks may also shift toward advisory services. If their main role used to be purely transactional, clients will now expect guidance on choosing tools, ensuring security, and using digital solutions wisely.

In the future, banks won’t vanish – they will transform. They will resemble tech companies, with mobile apps, automation, and innovative services. Digital currencies won’t cancel banks but will push them to rethink their role and become closer to their clients.

Future of banks in the era of digital currencies