In a video published on Tuesday, Israeli Prime Minister (PM) Benjamin Netanyahu claimed that the operation of traditional banks will eventually become obsolete and could be replaced by Bitcoin. He based his claim on the trustless nature of Blockchain technology and on Bitcoin’s continuous, notable growth this year.
In the video, Netanyahu stated confidently that banks will eventually become outmoded and be replaced, though when and by what exactly remains to be seen:
“Is the fate of banks that they will eventually disappear? Yes. The answer is yes. Does it need to happen tomorrow? And do we need to do it through Bitcoin? That’s a question mark.”
The head of the Israeli state also spoke about the role of banks, explaining that they were created and continue to exist to ensure that transactions between two parties are valid and secure. Banks, not to mention governments, continue to control how money is spent and continue to benefit from that control, at the cost of the transacting parties.
Blockchain, the underlying technology of cryptocurrency, makes it possible for people to transact directly. The decentralized technology itself, rather than a centralized institution, ensures that transactions between people are valid and secure.
Netanyahu acknowledges the significance of Bitcoin
“The truth behind what I just said is what’s propelling Bitcoin upwards.”
However, the prime minister also expressed doubt in the ability of Bitcoin to continue growing at such an astonishing rate, stating:
“There’s nothing like this, that will continue rising at this rate, it can’t happen.”