Bitcoin Forum

Big banks are worried about losing their profits to fintech companies such as bitcoin startups.Regarding Santander bank,the profit loss could be 10%, a leaked memo shows.The document shows that the bank charges six times more than its fintech rivals getting huge profits by giving customers poor exchange rates.They do this rather than charging customers high fees directly.It seems that Bitcoin has started to achieve the goal of liberating people from banking sectors,for what it was created by satoshi.

I don't know where you're getting that "leaked memo" from, but Bitcoin startups won't be taking nearly as much of the profits from banks as you think they are.

It'll take a long time for people to start actually putting large amounts of money out of banks and into Bitcoin.  Even by any stretched estimates under 0.1% of people in the world are Bitcoin users, and most of those Bitcoin users won't have all or most of their funds in Bitcoin.  The banks aren't threatened yet.

People are already stuck in debts, so banks can't have much of a problem regarding their profit. We're probably around 7-8 million Crypto users right now.. do you really think it'll make such a big difference? Most of us don't even agree with banks and probably never will, so there won't be a noticeable difference for them..

Bitcoin won't hurt them right now. What will hurt them is an anonymous, decentralized cryptocurrency that they don't like. Bitcoin is one of them, and with mass adoption.. a big issue for banks will come. It wouldn't be surprising if we'll start seeing "WesternBankCoin" and similar altcoins soon ..

Buddy I checked, This information seems true and its been released in Financial Times news site. Please refer it below.

https://www.ft.com/content/1a962c16-6952-11e6-ae5b-a7cc5dd5a28c

SOme months before even Citi bank New York announces that they plan to accept bitcoin for Citi users and plan about creating a new digital coin called Citicoin. I do not how much this gonna affect bitcoin.

Same as Op's quote bitcoin have​ been looked as an threat by most of the banking service, just because of the loss it generated to them. Later on believing it's efficient way of development banks too have started adopting the technology.

It wasn't for the fun of it that Bitcoin have been cited  as the future of money and situations like this, only gives credence to that. Bitcoin remains a threat to banks because it is far more convenient and cost effective for business, but its decentralized nature totally disagrees with the centralized nature of banks and that is why we are going to see the banks trying to come up with their own version of Bitcoin, so we cant say categorically that they are for Bitcoin.

Big banks have nothing to fear, because they have the full support from governments. The centralized nature of the Blockchain based coins,

like CitiCoin will never have the same appeal as a currency that cannot be manipulated, like Bitcoin. These centralized "coins" can easily decide

to increase the coin cap and nobody will have a choice in the matter... with Bitcoin we have a choice and we have a vote. { if you run a node }

I don't think something like this would be surprising for anyone who's actually involved in the financial technology sector, or even follows the banking industry in general. Of course something like Bitcoin is going to end up cutting away at profits of banks, since the money they would have otherwise is now being put in something completely outside of the system.

This might prove to be an issue for legislation in the future, since we all know how the banks like to cozy up with the government.

Lot of Banks have taken steps to take the knowledge of Blockchain technology and how to implement it in the regular banking system, so it think very soon we can see lot of development in the banking sector but what effect will it get to bitcoin is not known.

The banking sector around the world and taking proactive steps to understand the block chain technology which would ease the transaction and gives  more transparency but it has nothing to do with bitcoin,we can understand why people are staying away from banks because not too long ago we saw a financial meltdown and people might take steps to safe guard their hard earned money.

1. when people buy bitcoin with fiat.  the fiat is not burned. it just moves from one account holder to another. in short banks do not lose anything.

2. banks forex trades are not done at 'consumer level' . banks make their profits in the back offices trading on wall street. most bank 'consumers' use commercial services like bureau de change at airports or even some supermarket retailer do foreign exchange for the consumer level stuff

3. banks do make 'profits'. but they spend it on bonuses, dividends, and hidden gratuities to their board/share holders before tax day to then show no 'profit' to then pay no/little tax. while the top employees and board members have upgraded their houses and cars

As long as dumb people don't get rid of their credit cards, bank will keep making profits. It is a very simple mechanism what keeps banks alive.

First; they give you very low salaries which is enough barely for you to survive.
Second; they bomb you with advertisements of products which you don't absolutely need at all. (Like an Iphone for 500$, A sports car for 100k$, A parfume for 200$ etc, A big house for 500k$)
Third; As a brainwashed moron that you are, you immediately run to the banks and take loans.
Fourth; Gz. You successfully made yourself poor while making banks richer and richer.

As long as this cycle keeps going, banks will do fine.

What is bad for them is to make lesser profits than what they expected, and that's where bitcoin shines. An unexpected story for the bankers. A choice for the smart people.

Smart people don't trust banks. They hate banks. If they were able to, they would put every one of them on fire. They don't put their money on banks. Banks don't like that.  8)

It's OK, but what is the % of the smart people compared to the whole population?
What do you need to get smart?
Education - not everyone can afford it, it's not free
Financial independence - you need to have the funds to buy at least your average house, your average car and a salary to cover the average daily expenses. Not everyone has that funds or proper salary
Strength of will - Not to buy the iphone, the sport car, the dream house, etc... but if you have a whife and children, you will be less strength in things like that
All of these are costs money, and if you're short on money, you'll need the loans.
Banks are not realizing profit for the sole purpose to have a big profit. They have shareholders and the shareholders are waiting for the dividend, because they're funding the bank with their own funds and they want some return of the money year after year. And every year, they want a bit more then before.
The problem is not so urgent to the banks as it seems. If a fintech company finds a really new and innovative and cheap and easy and affordable and easily understandable thing that can challenge banks, who has the funds to finish the project? Banks or the financial groups behind the banks. They can easily buy the complete project (and they can decide it, if they want to start it or not)
Average people will trust banks first and fintech companies afterwards. So as long as the fintech startups won't team up with banks, they will hardly reach the neccessary amount of client to efficiently run their project, so they'll need additional funds to continue...
Banks gives loans (for houses, apartments, etc) for a long period of time (e.g. 20 years), so they have a plenty of time to develop their system. But, because they have the funds, they'll easily just buy the projects they want, so they will be the competitors of their own on the long run...

Shut it you little sperm, banks are not living entities and we all are mo*ons but mo*on sperms :D when it comes to the might of the banks, they're the necessary evil, we need them without them nothing would sustain in financial markets.
Economy would not grow in any country/ ecosystem without banks and central banks, we could see the living evident of what kind of a disaster a decentralized network could become when it comes the time to grow and scale up.
Would you rather to get scammed by anonymous people promising you to give high interest rates on your investment and then run away and you remain helpless with no money back?

We all can see how a decentralized ecosystem can be stuck in stalemate, problem with crypto is when you have enough money then you have enough power and influence then you become what you hate most "banker" central bank but without the obligations which central banks have to their governments.

Bitcoin market is just a sperm swimming in a pool of sperms going for the egg, and guess where are central banks and governments? well mom and dad at your service :D

This is old news. Banks have been studying blockchain tech for years now.

It is funny though. Bitcoin, the great libertarian big bank and fiat destroyer, is going to make big banks and fiat even stronger than they were before.

Source: http://nypost.com/2016/08/24/big-banks-push-new-digital-currency-to-rival-bitcoin/

It's a libtards wet porno dream and then your mom walks into the room.

https://media.giphy.com/media/3o6wruAdlcjJaK2S7C/giphy.gif

Yes. Please show us the leaked memo or the link of the story relating to it.


Many people here in the community, I have noticed, overestimate the usage and adoption of Bitcoin at present. They think that it will rule the financial industry in their life time. Most of the people who say this could be lacking in formal education judging from their English.

The banks should start to worry once this Bitcoin scaling problem has been
resolve bitcoin shall continue to progress and should be able to break the $1400 barrier.
Then many countries shall start to adopt bitcoin as a payment method and in time this digital currency shall replace the banks fiat currency.

Really? Has it really been resolved? The scaling debate is still escalating in my opinion and it will not end until Segwit is activated. A hard fork to Bitcoin Unlimited is out of the question. They should get an excellent development team if they intend to take the risk of a hard fork.

for me it will never be a threat to them if they know how to use bitcoin to benefit these banking services.

Bitcoin hardly poses any threat to big banks presently. Even if bitcoin becomes a little more mainstream in a few years from now, it will still pale in comparison to what banks are making. It is just that banks are established institutions run by professionals who are always trying to meet quotas and would always try to outdo its competitors.

Yes, bitcoin does not have any effect on banks, it's not like what people think. They worry that bitcoin will cause banks to collapse, but that certainly does not happen. Banks are the only thing we use for bitcoin and everyday life. To put it more precisely, bitcoin is dependent on banks, and vice versa, banks do not really care about bitcoins.

i don't know what you are talking about but big banks don't ever care about bitcoin, bitcoin is peanuts to them, they are more worried about the economy crysis that is affecting the world now

some of them will go bankrupt for sure, this is their primarily concern, and in fact it's risky to save money in bank now, bitcoin/gold looks far safer

even if bitcoin will gather enough attention i'm sure they will find a way to take profit from it, like creating bank for bitcoin only that give interest on your deposit etc....

Someone's getting it  ;)

many of them probably bought the coins while they benefit bitcoin well on altcoin, we will know the price that occurs in both rising and declining bitcoin price bitcoin. and if we could find out about this maybe we will benefit but it is only temporary.

Exactly so, that bank can accept bitcoin or reject it according to their judgment of bitcoin. If they accept bitcoin, this means they accept the challenge with bitcoin's constant changes. The value of bitcoin fluctuates a lot, and if a bank accepts bitcoin, they face the risk of bankruptcy if bitcoin breaks down. It is dangerous for them.

they have always been worried and their business is always at risk. and it is not just by bitcoin and this is not even a new thing. why do you think they are always present and look for ways of making money in any way possible.
and they have already infiltrated cryptocurrencies, there are many altcoins that are invested and controlled by banks look at the coinmarketcap number 2 coin (wink wink).

I think this is an efficient bank builder who has begun to adopt other technologies.

We are still ways to go before bitcoin can challenge the banking system. There are still a lot of adjustments needed to be done on the blockchain to compete with the banks.

Why should bitcoin compete with banks? Do we need an institution that gives loans in bitcoin, or do anyone wants to give his/her bitcoin to an institution for a longer time to gain interest (in bitcoin)? I think bitcoin should be firstly a kind of solution for digital cash (and secondly digital gold).
Why people use banks?
- Security
- Money transfer to abroad
- investments
- loans

the first 2 could be done easily with bitcoin. If you have a lot of cash, you put it in the bank, they save it for you. If you need to secure your funds (in bitcoin) you can use paper wallet and hardware wallet, no need for banks to save it.
People use banks (or WesternUnion and similar) to transfer cash to relatives in different countries (or not just to relatives, but to anybody). They need a system that solves this problem. Bitcoin can do it easily and securely, and (if there're not too much transactions in the mempool), it's cheaper.
What do you do if you want to buy something locally? You go to the shop, and buy something, you pay by cash. What do you do if you want to give money to your relatives or to someone else locally? You give them cash. No banks are involved in local transactions.
But what do you do if there is a distance between the two people? They cannot use cash, because of it's phisical existence. In these cases you need to involve banks.
But if you use bitcoin, you don't need banks, because of the nature of bitcoin, because it's digital, because it's accessible worldwide.
It's not a competition with banks, it's just solving problems without them. If you have digital cash, you don't need banks for digital cash transactions.
But if you want to apply for a loan, that's another story, and you cannot skip banks in that situation. If it was possible to give loans in bitcoin, then it would be a competition with banks.

Well at poloniex you can get a monhtly revenue of 1,2% or even more, with a low ammount of btc something at the banks industry you need big ammount to get a good tax for your savings. I doubt bitcoin can really damage the bank industry at all, we cant get a loan for a long period with bitcoin, atleast without a colateral not possible.

The biggest institution that is worried about Bitcoin is the government. It makes it easier for criminals to move value over the internet and make themselves anonymous through tumblers. The banks simply do not care about the markets they cannot penetrate like the dark markets. They are secure with their niche.

This is a very good news for the crypto society but too bad for the banking sector. If they are going to loss possibly 10% of their profit, they will have no choice for it but to adopt bitcoin in able to get their customers again. But the bad thing on it is they don't want decentralization. I'm interested what will be their next move for this.

Yes the bitcoin surely has challenged the banks by a variety of offers of profit it has created a panic in the financial institutions making them worried about their future.

This is becoming the main reasons of banks to adopt and accept the bitcoin and altcoins because of the ease that the crypto currency is offering to the people; people now prefer the bitcoin channel for investing and using it as a medium of exchange. It is tough for the traditional financial system to overcome it.

Bitcoin has not liberated bitcoin from banks rather bitcoin will bring the people to another slavery that they encountered with the banks. There are movement within the bitcoin network that tries to control bitcoin and thus if they succeed bitcoin could be just another bank. As long as there are greedy people our experience with banks will be experienced also in bitcoins thus we all need to stop it from happening.

Banks are not afraid of any crypto and especially the bitcoin because it is primarily used as asset, that is as a commodity and rarely as a currency. The same happens with the gold. As franky1 above said the fiat are not lost when people use their coins, just has changed hands (bank accounts). If ever banks loose their profit then we will understand how they will react.

I wonder how much money they have made until now on all the transfer fees to exchanges.
Right now banks love bitcoin. I have't made an international transfer in my life but thanks to bitcoin I've paid close to 100 dollars in fees.

Juts take a look at what the biggest fear right now is on the market...
Deposits stopped. Bitcoin trade would be dead without banks.

No, I suppose you were wrong. Bitcoin is really a challenge for banks, because its value is not real, it depends entirely on other currencies, which are issued by the government. The risk of bankruptcy always clings to banks if they accept bitcoin. That is true, and most banks accept bitcoin as government-led banks.

This would make Bitcoiners resolve to person to person transactions. The problem now will be how much will the price of Bitcoin be? Will it increase demand making the price go up? Or will it go down because less people will be using it since it is hard to convert fiat to Bitcoin.

Banks are immune to the world outside. Firstly they have the option of cheap credit. That gives them advantage of creating an economy independant of reality and failures. Secondly banks feed on the bad sittuation. The sittuation of the economy of the world gets worse and worse imho so the banks are in their perfect enviroment as everyone is in need of a credit else they default.  

Nothing can influence the banks in my opinion, outside of regulatory bodies and an entities that have an option to gain cheap credits themselfs. The competition is just too unfair.

I don't think that Banks see Bitcoin as a threat, I mean as big as they are they won't worry on something that has not touch the majority fo the world's population yet. Banks earn practically on everything although most banks offer a free savings account using it have fees from withdrawals to even checking your balance in atm machines have fees. Also Big companies also rely on banks on loans which in return they will pay back with big interests. In terms of profiting in stock terms banks are one of the most likely stable forms of investments in the stock market world because they are one of the essentials that people or companies need.

What people like Andreas Antonopoulos fail to realize when they say that "Bitcoin will rule the world" is the banks have become so powerful they are the institutions that influence the government to make laws that will make it more advantageous to them. He believes technology is the answer and that it will disrupt finance. No, the banks will bring us back to the stone age before that happens.