J.P. Morgan has reduced the likelihood of a U.S. and global economic recession in 2025 and 2026 from 60% to 40%. However, we may experience a period of below-average growth, especially as the impact of U.S. tariff shocks may still be felt. There have been two bank bankruptcies this year, and several banks have been analyzed by "The Financial Brand" regarding the number of banks and bank branches insured by the Federal Deposit Insurance Corporation (FDIC) in the United States since 1939. These trends paint a concerning picture for the future of the banking sector. Over the next twenty years, half of the banks currently in existence will disappear, leaving the number of banks in the United States below 2000 by 2042.

How will digital currency affect banks?

The crucial point is that digital currency creates competition on the liability side of banks' balance sheets, which impacts the asset side due to net worth constraints.

So will banks be forced to shift to digital currencies due to
the reduction in operational costs and information technology costs, among others. The ease of customer use with those banks. Digital banks provide services to their customers without the need to go to branches and crowding. Only time and fluctuations will determine this.