How Cryptocurrency Wallets Could Replace Banks

Cryptocurrency use cases vary based on who you’re talking to. Some believe that digital assets can replace our current financial system, while others view crypto as a store of value like gold. Each use case has its pros and cons, but they also have one thing in common: a cryptocurrency wallet.

A non-custodial cryptocurrency wallet acts similar to a bank. It stores and secures your assets, allowing you to transfer or receive funds as well. But a bank is still an intermediary – a third party that can limit your spending, take away funds, and see all of your transactions. A crypto wallet provides the same, but without moderation. If either use case gains traction, we very well could see wallets make banks irrelevant.

That’s a bold claim to make, so let’s break down why non-custodial crypto wallets have such potential. We’ll use the Unstoppable wallet as an example.

Endless Storage

There are hundreds of cryptocurrencies out there, and there’s bound to be more if DeFi continues on its upward trajectory. Fortunately, Unstoppable can store pretty much all of them.

The wallet supports major blockchains like Bitcoin, Ethereum, Dash, Zcash and most importantly, all ERC-20 tokens and coins, among other mainline assets. Just like how one bank account can fund all of your spending, this one wallet can hold all of your various cryptocurrencies.

They Have Your Privacy in Mind

Current banks know everything about their customers. They know what you’re spending on, how much money you’re making, or where it’s coming from, and hold a ton of personal data at that. In a world where information has become currency, banks are essentially an invasion of our privacy.

Unstoppable wallet needs nothing. Every person of any race or background can set one up anonymously. With cryptocurrency wallets, discrimination is a thing of the past.

24/7 Access

Because humans run banks, they need to close every so often. Bank holidays, weekends, and nights make it difficult to quickly get money for a surprise expense. You have to plan ahead with banks, which isn’t always possible.

Cryptocurrency wallets such as Unstoppable are autonomous. The market is always on, and you can access your funds at any time from most electronic devices. No more waiting for checks to clear or rushing to the bank after work to pull out some cash. Plus, there are Bitcoin ATMs available for those who want a real-world solution.

Lack of Fees

Cryptocurrency transactions do have fees, but they’re not as ridiculous as banking fees. Savings accounts cost money. Overdrafts cost money. Pulling cash from an ATM costs money. All of those little charges add up over time, which is stressful for those in less fortunate financial situations.

There is no charge for holding assets in an Unstoppable wallet. You may pay a one-time transaction fee from an exchange to the wallet, but you can hold forever without a single charge in wallet.

Higher Interest Rates

Current interest rates are affected drastically by inflation. On average, a traditional bank will provide you with anywhere from 0.01% to a 1% or 2% annual interest rate on your savings. Unless you have a massive amount of cash saved up, this rate is next to nothing.

On the other hand, cryptocurrency wallets tied to the DeFi ecosystem can provide you with so much more. There’s staking cryptocurrency to earn anywhere from 6% to 20% in annual interest. You can lend out cryptocurrency to anyone with the collateral to hold it, all without jumping through the hoops of a bank. That’s not to mention earning rewards for participating in certain networks, ensuring you even more profit.

As crypto technology expands, you’ll even be able to take out car loans or have a credit line completely separate from a traditional one – all connected via a wallet like Unstoppable. Depending on the platform, you can also customize your minimum payment amounts, and how often you pay them back as well.

Instant Payments

Bank transfers can take hours or even days to complete. International ones may even take weeks. If you’re travelling, you need your money ASAP. Nobody has weeks to wait funds that they already own. Transfers have high fees on top of this.

Your crypto wallet follows you around the world. If you travel from the US to China, you can instantly purchase anything at any place that accepts cryptocurrency. Ideally, the number of crypto-positive spaces will increase as the tech develops. It’s essentially a worldwide currency.

This goes double for transferring money to someone else. Sending money to a relative across the world is a hassle. It may get lost in the process, charging you even more in time and fees. The trouble almost isn’t worth it.

However, cryptocurrency transactions take minutes. If both parties have Unstoppable wallet, you can send any supported cryptocurrency. The recipient can then cash that out into their local fiat within a half-hour. If anything renders bank technology useless, it’s crypto transaction speeds.

Conclusion

You’ve probably gathered this, but cryptocurrency wallets open up financial opportunities to all. Banks need money to run and pay their employees. They tend to support those with the most money instead of holding an unbiased relationship with all customers. Crypto wallets need nothing of the sort. All you need is to buy cryptocurrency and send it in. Your opportunities then become endless.