On April 19, Litecoin (LTC) proved cryptocurrencies will disrupt the global banking sector, as $99 million worth of LTC was sent in a single transaction.
The $99 million was eye-popping, but more amazing was the fact that the entire transaction took just two and a half minutes to settle and cost the parties only $0.40.
The story immediately shot up the rankings on Reddit, fueling plenty of excitement.
But if you've been following Money Morning Defense and Tech Specialist Michael Robinson's cryptocurrency reports, you wouldn't be surprised.
He's been anticipating increases in transaction speed and decreases in transaction costs for cryptocurrency payments for some time.
And because of the efficiency of crypto transactions, the global banking sector is scared…
Why Big Banks Are Afraid of Cryptocurrencies
One of the biggest problems facing the global currency markets today is the transfer of money across borders.
Not only is it time-consuming, but these transfers also come with significant remittance fees that take a big chunk out of the shipper's capital.
But blockchain technology – the powerful force underlying cryptocurrencies – provide the possibility of more reliable transactions, lower costs, and faster transaction times.
See Why Bitcoin Is Far from Dead: Cryptocurrency legend Michael Robinson just revealed why Bitcoin could be poised for a record-breaking rebound. Before the mainstream public gets any wiser, you need to see this now.
And financial institutions are well aware that cryptocurrencies present an underlying threat to their business model…
In February, Bank of America Corp. (NYSE: BAC) listed cryptocurrencies like Litecoin among its risk factors in its annual 10-K filing.
BAC listed three distinct risks from cryptocurrencies, with two tied to the bank's challenges in complying with anti-money laundering efforts and market speculation.
But the third factor was critical…
The bank noted that blockchain technology makes it possible for counterparties to no longer rely on intermediaries to complete a transaction.
The announcement came just days before rival JPMorgan Chase & Co. (NYSE: JPM) issued a similar warning to its investors.
"Both financial institutions and their non-banking competitors face the risk that payment processing and other services could be disrupted by technologies, such as cryptocurrencies, that require no intermediation," JPMorgan said in its 10-K.
In other words, will people even need a bank in the future to process transactions?
Not if cryptocurrency payments offer faster transactions, lower costs, and decentralization that puts users back in control of their finances.
Moving forward, we anticipate that more transactions like last week's $99 million transfer will become commonplace thanks to cryptocurrency payments becoming so fast and cost-effective.
In fact, a systems upgrade expected any day now could send Bitcoin to $100,000…