Difference between the youngest baby boomer and the oldest millennial is just 20 years. It sounds like it is not much, but the difference in the worldview between these two generations in America is immense. Contrast is the biggest in the banking sphere. While baby boomers are very loyal to the banks, millennials are not. They are less conservative and willing to try new methods of savings!
Incoming deregulatory moves in the US will possibly, even more, bring distrust toward banks which will, in contrast, launch a shift toward cryptocurrency depositories.
In a study published by Weiss Ratings on May 22nd, it is noted that there will be more Americans moving away from traditional finance and entering the crypto market if the US Federal Reserve (Fed) relaxes the post-2008 financial regulations.
Watering down the “Volcker Rule” will be a major deregulatory move. The Fed is set to meet on May 30th to consider this. With these changes, banks would be allowed to make high-risk profit-seeking trades with less government oversight. If this happens, the increased systemic financial risk could turn people towards a conclusion that “cryptocurrencies do a fundamentally better job as a safe depository,” as Weiss analyst said.
There is a strong lobby that demands more freedom to trade speculative assets such as derivatives, whose ownership is extremely centralized. In a study, Weiss presents an idea that these, potentially toxic assets are not simply investment and speculations that banks make with their own capital, but also presents a risk to clients own depositories. In an event of another major financial crisis, these depositories might be lost. Because of that, it is possible that people will perceive traditional bank depositories as a riskier method of preserving financial assets than cryptocurrencies.
The general public idea about the bank savings is that it is simple and more importantly safe. When you dig deeper into the process you might find out that traditional monetary system continues to offer banks rich reward for excessive risk-taking. This will especially be emphasized if the new wave of deregulations happens.
The Millennial Disruption Index is a three-year study based on extensive interviews with over 10,000 respondents who answered questions about which industries were most likely to be disrupted in the coming decades. Millennials believe banking is at the highest risk of disruption out of all the industries in the survey. Also, many reports through the years stated that Millennials express their distrust of banks in a huge percentage.
Every next generation will be even more progressive and tech-savvy than the former, so it is clear that the future of cryptocurrency depositories is very bright. This would be a big positive move for cryptocurrencies in general. Gaining public trust will take the crypto movement to the next level. It might not be an instant process, it might take some time, but one thing is certain, a wind of change is stronger every day!