San Pedro, Vicente Jr, M.

Student Number: 2018 - 108859

1. Banking is important as it is the “lifeblood” of the economic activity. It is vital in

collecting deposits and providing credits to people, households, and businesses. And
because of this, states become undisputable. In all economic system, banking has
the leading role in planning and implementing financial policy. In a general manner,
having online banking and mobile banking makes our everyday lives easier. Because of
this digitalization, banking now means no more lines, no cashier transactions, or just
simply no more chasing with the managers just for the checking of your account’s
balances. It is also helpful in the manner of paying bills, transferring funds, and there is
an easy access on accounts, 24/7.

2. Banking laws cover financial institutions. Banks have significant impact on the
economy. The goal of banking laws is to narrow-down the fact that the states want to
remind banking businesses or financial institutions of the importance of transparency,
protection of assets for both the customer and the bank, and preparation in avoiding
future crisis for the economy.

3.Now with this modern era, banks are one of the engines of the modern economy, but
with the existence of cryptocurrencies, the way they work is under threat. Having
cryptocurrencies in our daily lives is a game changer, if digital currency or cryptocurrency
will become our currency in our daily lives, this could have a dramatic consequence far
beyond banking. It could affect consumer privacy, government power, laws and stability
of the entire financial system.

Now the way people move and the way they spend their money is changing due to the
new class of digital currency or cryptocurrencies. This new digital ecosystem, overall,
disregards nation states and national borders. I fear that these developments would cut
the cord between the banks and the economy concurrently.
The question “will there still be a place for Banks and Banking Law in the near
future?”

Maybe; Maybe, Not.

Maybe, if the government will continue to invalidate cryptocurrencies as a valid currency.

Maybe not, if the central bank or BSP takes radical action by creating their own digital
currency to rival with this digital ecosystem in the hope that this may/will secure the
people, transactions and the economy. But this could change everything, one of the
possible changes here are those fractional reserve banks or commercial banks that might
potentially be out of job. This could affect the economic growth as they could not rely on
consumer deposits to finance their loan. Innovations like this could disrupt financial
equilibrium and give government a far greater control over their citizens’ money and lives.
Although it’s possible that banks may not exist, just to imagine the world without banks,
just by the thought of it will make us miss having them if they’re gone.