Most of the U.S. banks are not able to manage the stimulus checks that are being distributed to 80 million Americans. They are going down due to increased demand generating because of the stimulus.
The online platforms for US Bank, PNC, and Fifth Third Banks went down on 15th April. It was unable to cope up with the inflow of stimulus funds. Whereas, on 16 April some customers of the online-only Ally Bank complained about outages and the customers reported about the ongoing issues as well.
However, Banks are trying hard to handle but couldn’t scale with the increased demand. And the most ironic fact is that the “lack of scalability” is nothing but a drawback of Bitcoin (BTC) and other blockchain networks although it was fluently going along in the meantime without any disturbance.
Alex Mashinsly, CEO and founder of Celsius Network (CEL) is popular for his expertise and knowledge about the banking industry. He recently opened up and talked about the issues with the legacy infrastructure. He said that we all are living in a technological age in which everyone can scale. However, the matter is not about what is happening. But the government continues to print physical checks and mail it to the people.
According to him, the reason behind our stern belief and reliance on the old and tried banking system for the giant stimulus distribution is because of the benefits to the banks from this friction.
To elaborate this he said that they can use blockchain technology instead of the old banking system. Thus, as per his knowledge, it’s not a technological issue. But we need to understand that, at the time of friction, the banks make huge fees. Whereas, if we eliminate friction and use blockchain in its place, then the banks cannot charge more, they are forced to charge less in that case.
However, now it is impossible that amid this crisis the government of the US will resort to the aid of blockchain technology. But it is something that all the governments of the world will be pressured to use in the upcoming future.