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.