Bitcoin Forum

There is a logical explanation for this.
First, the volatility inherent in digital assets. The fact is that the main goal of every bank is to make a profit. The slightest fluctuation in the cryptocurrency market increases the risk of reducing all projected profits to zero. Today, cryptocurrency is showing a certain stability, but even despite these indicators, most financial institutions still prefer to provide traditional banking services for corporate clients, whose activities they understand.

Decentralized Cryptocurrency is not controlled or limited by anyone alone, there is no single administrator and regulator. Not a single financial, tax, government organization can influence the actions of participants in the payment system.
Ethereum is a multifunctional virtual platform on which blockchain-based applications (online services) are created. Applications work as "smart contracts (smart contracts)" that exclude third parties (intermediaries) in the transaction process. On their basis, it is possible to create a platform that will stimulate banks to lend against the security of cryptocurrency without fear of losses, and this, in turn, will interest the financial sector to place its assets in cryptocurrency?

In solving this problem, I took as an example the existing US financial system.
Assuming that Ethereum is the Dollar, and the smart contract is the Office of the Comptroller of the Currency of the United States (OCC), and ETH-WORLD tokens are the Securities of the US Treasury, we get a financial model of a new decentralized economic system based on cryptocurrency. I implemented all this in my project, in contrast to the existing Fiat, it completely lacks an external emission regulator and is managed by the smart contract program.
http://prosh.info/smart_eng.html

Because the majority of them afraid of crypto regulation, thats all. Crypto is still a shady thing in almost every country

Isn't it obvious? Why would they want to embrace decentralized cryptocurrencies over their centralized currencies? That would cause them losses in several ways which is why they usually dislike cryptocurrencies.

On the other hand, many banks have openly embraced the technology behind cryptocurrencies like BTC which could help their improve their centralized currencies.

They could offer cryptocurrencies as alternate payment methods though if their governments permit them to do so.

The shady part is what worries them the most I think, remember that businesses work on reputation and you have more clients if you have a big reputation and seeing as crypto is used for illegal things sometimes, they don't want to be associated with especially if there is an investigation which is a big hassle for them and hassle in business is a money loss.

Some reasons why Banks are having a hard time accepting to work with cryptocurrency and Don't work with it is because the entire concept and mechanism behind the workings of cryptocurrency threatens the banks ability to make money for its continuing existence and relevance. So for the old generational banks and others, it is in their best interest if people stick with the traditional fiat.

Another reason is as a result of government policy and control. We all know the banks are subject to a central bank controlled by the government, so it is not going to be easy to accept to work with something that has not been approved by the government.

Nope.. The real reason is this.

Governments control Reserve currencies and they have the power to print money. The Reserve Banks dish out that Money to Banks and they distribute it to the people in the form of loans. Now, why would Banks piss off the hand that feeds them and also the guns that protects them?

Also, when Banks fail... governments jump in with huge bailouts that are funded with taxpayers money to save them... So it is in their best interest to support the hand that feeds them.  ;)

In my own idea the main and most important reason is the crypto regulations. Since that's way too hard to track the crypto transactions, there would be many abuse from it such as money laundry, and illegal trades with crypto. In the other hand, the governments will not take the risk using and working with crypto because they can take more advantage from people's money by using the old fiat system. However, I believe crypto is the new generation and surly the banks and government should deal with it.

Cryptocurrency transactions are almost untraceable as there are no names and date written on any Blockchain to ascertain who owns a certain wallet and the transaction carried out on it, so it would be difficult for banks to trace shady deals associated with cryptocurrencies and regulations is another major culprit. The existence of cryptocurrencies in general threaten the banking institutions.

I will make an illustration.
Jack has no money but he only has $100 worth of Bitcoin, he plans to convert it into Dollars, he will sell it to Alex, then Alex sends $100 money between bank accounts. then Jack cashed it into dollars, he used the money to buy house needs.

well, from the illustration above how banks think, which they do not recognize the existence of the Bitcoin price. it would clearly be said to be money laundering. Jack, who originally had no money, became able to have money. Isn't it for the bank to create something that has no value and then have value without a clear agreement. Bitcoin price is determined by a few specific communities that make it have a price.

while the position of the Bank in a country is to control the money supply. if Bitcoin continues to soar in price, the money circulated by the Bank will automatically experience large-scale printing.

Wow, I looked through your project, though I didn't understand all of it, I think this might be something big and gives a chance to solve the problem. Did you come up with this idea on your own?
Also, am I right in the understanding, that for your project to work there is a need for constant new smart contracts and token emitents? And in the end, a very large portion of ETH holders need to participate in this system, right? How do you attempt to achieve that?

At the same time there are many other problems, the banks are mostly controlled by government and other powerful individuals and for them an unregulated system like bitcoins and other cryptocurrencies is a threat. It's already killing their long line of rich hierarchy.

Who said fiat is not volatile ? When you talk about a developing country, you will understand how Volatility is normal in their currencies it might not be as intense in cryptocurrencies but it is there therefore it is not a big deal, but the honest thing is "acceptance of cryptocurrencies"

Laws are changing !
They are changing according to the benefits the government will get from cryptocurrencies. I don't see any county saying no to the tax coming from "online casinos".

I believe the quoted above is the main reason why banks are feeling very reluctant to accept crypto, banks are set up for profit making, almost all banking transactions must involve them taking interest or commission, if crypto with the high volatility will prevent bank from making that profit, i don't think they will be interested in working with crypto, at least not anytime soon.

It is actually not true, a lot of banks are already involved in the crypto market. Volatility is the bread and butter of banks who run trading desks. Traders will go where the money is, so after the recent rally we will see more and more banks to take advantage of the crypto market. Just check out Goldman Sachs for example, they have been trading Bitcoins for a while now and recently expanded into ETH (https://cointelegraph.com/news/goldman-sachs-crypto-trading-desk-expands-to-ether (https://cointelegraph.com/news/goldman-sachs-crypto-trading-desk-expands-to-ether)). The more banks will get involved with cryptos, the more products they are going to offer for the consumers.

Personally I don’t think banks should have anything to do with cryptocurrency. Maybe the central banks can allow their smaller banks to help their customers in exchanging their cryptocurrencies into fiat. I don’t see anything wrong with that, and that’s if the bank is ready to function as an exchange and take the risks. But when it comes to engaging fully into cryptocurrency, I don’t think that’s necessary.

Moreover we already have exchanges, many of them like Binance, Coinbase and even lots of P2P exchanges. So, what’s the need of having banks again operate as the same? Finally, I think what you have said here about each country having their own currency is right, every country should have their currencies.

Cryptocurrencies have a completely different system than fiat money and they are also very volatile. These can be some reasons for banks to think twice before adding cryptocurrencies to their system. But it looks like this is going to change. Because some banks have decided to add cryptocurrencies. And it'd be for the benefit of them if we think about the future.

there is only one reason and it is not really that complicated, cryptocurrency like bitcoin doesn't need any type of centralized middleman to handle transactions and storage. it is designed so that you can easily do it yourself and be in full control. in other words if you use bitcoin you are making banks obsolete.

You mean? many banks have implemented their systems with cryptocurrencies or blockchain,
have you not seen the news that is happening in the world? Asia such as Japan and Korea have given the green light to Bitcoin,
and Panama, ELsavador have also legalized Bitcoin, of course the Bank there is also doing that

I think you are talking about the blockchain technology but not cryptocurrency adoption directly or maybe I'm yet to observe that but the issue for the banks is control and regulations. Fiat is regulated by the government but no control of cryptocurrency, although few countries are considering such

Banks do not work with cryptocurrencies because they are decentralized and are not accepted due to their volatility. But thanks to the continuous work and the growing acceptance of the community they are gaining more interest in these institutions.

We can add that bitcoin and cryptocurrencies now have Crypto Friendly Banks. As the following article in Tezro points out, a list of banks compatible with bitcoin and cryptocurrencies located in the United States, Canada, and Europe.

This is quite true in the case of India as well. In India, RBI had issued a notification banning banks/regulated entities from entering into transactions with entities that dealt with cryptocurrencies in 2018. All the banks then refused to service any crypto exchanges due to the notification. However, this was successfully challenged before the Supreme Court and which quashed the notification and thereafter dealing in crypto was made very smooth.

Recently, some banks were found quoting the quashed notification to refuse services to crypto exchanges. Therefore, RBI again issued a confirmation that its previous notification was no longer valid and that banks are allowed to provide services to crypto exchanges.

You can read my article on real news on Indian crypto news here (https://bitcointalk.org/index.php?topic=5339221.0)

Agree with 3 point your mention on thread, just summarize in my thought real bank is responsible of their customer account and if something worst in bank happen like hacked etc it would be big loss for them. and also every country had regulation for bank and most of those regulation are not match with crypto characteristic. its not that easy to just make a bank like creating an exchange.

Sooner or later, banks will still have to work with crypt currency, this is inevitable, which means they need a condition under which the crypt currency will evaluate financial assets as the dollar does now.
If you read my project, you would understand a lot.
http://prosh.info/smart_eng.html
In solving this problem, I took as an example the existing US financial system.
Assuming that Ethereum is the Dollar, and the smart contract is the Office of the Comptroller of the Currency of the United States (OCC), and ETH-WORLD tokens are the Securities of the US Treasury, we get a financial model of a new decentralized economic system based on cryptocurrency. I implemented all this in my project, in contrast to the existing Fiat, it completely lacks an external emission regulator and is managed by the smart contract program.

between cryptocurrencies and banks have the opposite nature. between centralization and decentralization, and the most important thing is the role of the government in it which seems to be able to control it, while crypto cannot be treated like that. but there is an elsalvador country that will start using bitcoin legalized in their country

I hope that on this forum there are those interested in the development of DeFi who can confirm or deny the idea of my project. I will be glad to any comments and suggestions that will help to reveal in the future the unlimited possibilities of decentralization of future finances.

Banks do not want to deal with cryptocurrency because of its unique features. There is a big difference between conventional currency and cryptocurrency. Banks use conventional currencies in various ways to meet their own and the government's various needs and print additional currencies if necessary. Cryptocurrency, on the other hand, is a decentralized currency and cannot be fully controlled by banks or the government. Moreover, since cryptocurrency is not known as the currency of a particular country, the government or banks of each country do not consider it appropriate to use it as it is not their own currency. So for all these reasons banks do not want to work with cryptocurrency.

There is no "logical" explanation, banks do work with cryptocurrency, they do buy them, just indirectly. How? Hedge funds. Hedge funds do buy a ton of banks stocks, all the banks in the world usually owned by many different hedge funds that is why it is basically a full cycle, and hedge funds invest in cryptos as well, which means banks owners are technically buying up bitcoins. Is this enough? Of course not, but they do not have to deal with anything in fiat world, they are saved by governments anyway, they could just give mortgages to whoever they want and they would be still bailed out, in crypto nobody can bail you out.

They could still buy a hundred billion dollars worth of bitcoin, and if the price drops and they sell and make a huge loss, they could ask from government, but they are not ruining crypto that way just yet, which is why it is good that they are not around.

Actually in my country bank already works with crypto or rather online wallets, so what happens is that they give features to the wallets to sell their bitcoin to cash it out using banks or atm, by doing this it solves the problem of fluctuation. This is the best way to approach cryptocurrencies as a bank since banks are too busy with stock markets already, and since everything can be accessed online with cryptocurrencies including exchanges going to banks isn't necessarily required so meaning banks has no way of working with cryptocurrencies unless they create projects of their own or create an exchange using their trademarks.

There are many nations that did that, or still doing that. In my nation it was illegal for banks to work with crypto companies as well, now there are 10+ local exchanges working with every single bank, and even doing 7/24 wire transfer which I can't do from my bank to another banks account for example, so I could basically send someone money from my local crypto exchange if I want to but can't send them from my regular bank (out of work hours), so they are very supported.

Basically each nation has the same time line, they first do not care, then they care but ban it until they understand what it is, then they let it be once again to see how it works, then they study a way they could make money from it (taxing) then they support it a lot so that they could make money. Not only crypto is a good thing for you, it is a good thing for your nation, India for example would be one of the best examples of that, you see in the future India will support it a lot.

I think it is mainly because of cryptocurrency's volatility and centralized nature. Bank are under the government's control and its volatility is not as great as bitcoin considering the fact that fiat currencies does not experience massive increases or decreases in value. It is solely based on a certain country's economy on how will the price move for fiat so if you are investing on banks and your country is under the threat of having a downfall in the economy, you shouldn't consider continuing anymore. Instead you should start diversifying your investment in crypto where it will be worth it later on.

The main reason that banks do not work with cryptocurrencies is the position of government agencies that do not allow banks to fully engage in such activities. Banks in their activities are guided by the rules and instructions that are established by the financial regulator and in this area in different states the situation is different, from a complete ban on such activities in some states, to a cool and skeptical attitude in other states with rare exceptions. Even where it is not explicitly prohibited, there is no necessary regulatory framework for the activity, which for most banks is almost equivalent to a ban.

Banks is centralized and a partner of the government  who doesn't have any control over digital currency which is decentralized.  So, I don't think if one day banks will work with cryptocurrency. If ever it will happen , then it's good for us. It's more likely that government will also legalize the digital currency.

I think there are a lot of people in cryptocurrency who are not really after the decentralized feature. Even in Bitcoin, how many people who are actually joining Bitcoin for decentralization's sake? They're probable lesser than those who got into Bitcoin for different reasons. For example, one may prefer to store his/her wealth in Bitcoin primarily because of the fact that fiat is always depreciating.

Anyway, banks are actually already in the game. They're into crypto already. It's just a matter of time before the huge majority of them are already part of the bigger crypto community. Even crypto custody products offered by banks might sound a lot safer to many people who feel that they cannot properly function as individual banks.

Fourth, pride. It's like admitting defeat.
If ever this happens it will be a whole new world. Yes, just like the song.
Kidding aside, it's really the volatility but there are already stable coins that were created, and yet they won't use it still.
Transparency will also be an issue. They don't want anyone to just peek at every movement they will make. It's not about privacy but secrecy.

Even commercial banks operate on the basis of strict instructions from regulatory authorities. Banks cannot decide on their own whether to work with cryptocurrency or not. First of all, cryptocurrency must be legalized by the state. Then, after the adoption of the relevant laws, by-laws should be created that would detail the work with cryptocurrency, including detailed instructions for banks. Only after that banks will be able to work with cryptocurrency within the framework of the rights granted to them.

No need to generalize all the banks here. One issue may be with the regulations. In countries such as India, the laws regarding cryptocurrency are very unclear and the banks may chose to stay away from this sector in order to avoid crippling fines in the future. But I agree that there may be a few banks that may be concerned that at least some of the cryptocurrency transactions may be linked to illegal businesses. Still, they have nothing to worry in case they are processing transactions for some well reputed exchange with KYC requirements.

Banks do not work with cryptocurrencies because cryptocurrencies are decentralized and have no government control. If banks start using crypto then they have to convert like fiat blockchain uses a technology called cryptocurrencies which is in fact a database that records all transactions performed on it blockchain is decentralized which means it is not located in a specific location and therefore cannot be easily hacked. All cryptocurrencies are decentralized meaning their values ​​generally do not adversely affect a country's position or any international conflict.

The banks don't want to work with cryptocurrencies,because the benefit is questionable and the risk is big.
Why would the banks adopt cryptocurrencies?To please 4-5 million crypto users world wide?
How many new customers will be acquired by a bank,that adopted cryptocurrencies?100?1000?
Is it worth it?If I was a banker,I wouldn't bother with adopting cryptocurrency payments.
I don't want to mention all the headaches the bankers will have with central banks,regulators and the government,if they decide to adopt cryptocurrencies.

There are so many reasons for that. It's depend on the government, and when we talk about it then it's not just a matter of economy but also ministry of defense and etc. Some government afraid to accept bitcoin because it is volatile, it can make amateur investors suffer financial loss. Not all of people are smart, there is some people who enter cryptocurrency market when it is bullish then they loss when it is bearish and decided to leave cryptocurrency investment which is the worst decision that can be made. If they will loss they should not sell, just hold and trust bitcoin. Unfortunately many people who came isn't really trust bitcoin and blockchain technology but just for speculative investment so they can easily suffer financial loss. That's my opinion.

The bank works by circulating their money. I think it would be hard for Cryptocurrency to do that.
The price is volatile, so investors, lenders, and borrowers would have difficulty adjusting to the system.

I think when you sum it up, everything will still end up with the volatility problem. But if they can use it for their own profit then why not.
Local wallets and exchanges can survive it up until now and bankruptcy had never been an issue. So why can't a bank just take the risk of using the same method like those exchanges does?
Maybe they are doubting that their investors will find it hard to understand how it will work. Just a good explanation may suffice but I think its also the traditional way that stops them.

We can get benefits from crypto and the banks because we can convert crypto to fiat without worry. But we do not have to convert in a big amount to make the banks suspicious and investigate our account in crypto or exchanges. So the banks now do not want to work with cryptocurrency but if in the future, everything is change and people prefer to use digital currency, the banks need to evolve and maybe fiat will change into digital. But we already see that is happening now because many mobile phone platforms can accept the transfer from bank to the platform, so people can directly use their money in the digital form.

Banks must undergo a regulation. Investing in assets that are not regulated is therefore dangerous for them. In addition, banks always want to hedge their investments, e.g. with swaps or options. These do not (yet) exist in the crypto sector, so investments in the crypto sector would currently be very dangerous for banks. In my opinion, that is the main reason.

banks are not afraid but they want crypto become regulated by them .  if there are afraid that would be us people because we dont want cryptos to be regulated and why cryptos are shady when the word cryptos are everywhere , in the net , tv's , radios . its not shady but it was risky if you treat cryptos as an investment .  some banks have worked with crypto but some dont because it makes their fiat useless .

Banks are the real financiers, they handle everything that has to do with money and their way of making money is giving it to those investors and the investors will then have to pay back the money that has been borrowed with interest. The interest on top is their profit that they are getting and it’s fixed. They don’t have to invest in Bitcoin directly, that’s totally wrong, since Bitcoin is a very risky asset which is volatile and the money these people are handling are money that belongs to people, so they shouldn’t be taking such a risk.

Banks may be happy to engage in such risky things, but the banking sector is a regulated area on the part of government agencies, so banks are not allowed to engage in such risky operations much. Another serious danger is that if large banking structures come to the cryptocurrency market, they will completely bend this market under themselves, and monopolization usually does not lead to anything good in the end, and the legendary Satoshi Nakamoto would hardly be delighted with such a prospect. Therefore, on the one hand, it seems that we would like banks to participate in working with cryptocurrencies, on the other hand, there are serious concerns about this.

To be honest, I only understand like half of that sentences that I quoted but I get the rough point of it.

Even if somehow the majority countries regulate crypto ( although I kinda doubt that this will actually happens ), it doesnt means that it would be compatible with banks. Banks are centralized while cryptocurrency is not so both are contradicting each another. Aside from that, bitcoin was initally invented as p2p transfer system and that means we can ditch bank if most people start accepting cryptocurrency

There have been some significant developments recently and they explain the hostility from the part of banks. The most important one is what happened in El Salvador, where Bitcoin was made a legal tender. And this put Bitcoin as a direct competitor to fiat currency. If an asset is a competitor to fiat currency, then automatically it becomes a competitor to the banking system as well. Because banks will be made obsolete if fiat currency is not there. You don't need bank accounts to store or transact with cryptocurrencies.

There are now German banks that work with crypto currency, they are not directly in charge of them I believe but they are basically helping people directly instead of being in crypto directly and that is still a thing. In many nation’s banks also work with crypto exchanges, where do you think all those billions of dollars, actually I believe it is over 100 billion by now, in ALL exchanges of the world put their money in? They have tangible fiat currency in their accounts for all those users, you put your fiat in coinbase, and someone else does too, then buy crypto with it, where do you think that fiat goes to? Cash in hand of coinbase staff?

Of course not, it is all in banks. Which means banks all over world have over a hundred billion dollars (my estimate, real number could be different) thanks to crypto exchanges, that is a huge sum and that is indirectly being involved.

It is that obvious, for years banks and governments have waged a war against cash trying to limit how you could spend it as it gave you the ability to spend your money in a way they cannot track, they use the excuse this is to combat terrorism and drug cartels but we know this is not true and they just want to monitor all their citizens.

Bitcoin has destroyed those plans, now even if they eliminated cash bitcoin will still exist in a network they cannot control and they will do everything they can to not support it, just as what we are seeing at El Salvador already.

It's true that every country has its own policies. Not all of them prohibit banks from cooperating with crypto.

It seems to me that you did not understand the main idea of ​​my project. Currently, the entire world economy is run by the US financial system. To guide all transactions in the world, the dollar and Treasury securities are practically used, which this country "prints" at its discretion because there is no other single independent arbiter against whom everyone could count their GDP before, it was gold, now it can become Ethereum.

Assuming that Ethereum is the Dollar, and the smart contract is the Office of the Comptroller of the Currency of the United States (OCC), and ETH-WORLD tokens are US Treasury Securities, we get a financial model of a new decentralized economic system based on cryptocurrency. I implemented all this in my project.
http://prosh.info/smartcontract.html

All matters on the government that who do ran off the entire country because not all government would really be having on the same view and treatment towards crypto some would be legalizing it and some would be totally opposing it.

Banks are heavily regulated which it is normal that they would really be abiding on countries laws and since government do love centralization then
expect that institutions are heavily centralized as well.

Its not that both cant work to each other since we have seen that there are banks that do adopt out crypto but not really that great in numbers
but at least there are still some consideration.

It will be good idea and discussed over 3-4 years.But it was not implemented because of the reason,bitcoin was not legalized all over the world.When the people invested their money on bitcoin,the bank should look into the people investing platform.Some bank get legalized of crytocurrency and using it also for the transaction .

Bank is a Centralized institutions mananged by country supremo but bitcoin is decentralized nobody has control over bitcoins. We can make transactions in btc independently then how bank work with cryptocurrencies. Even now bitcoin adoption not done by many country. There always a confusion about bitcoin regulations in some parts of world's.  In bitcoin now lots of money goes into that from arround the world so this questions answer will come from all government buddies in very short times.

Sometimes I wonder if people like you are conmen or just plain stupid to harbor such delusions.

That whole crap of a "project" is talking about this idiotic idea of pooling everyone's Ethereum in a smart-contract and that smart-contract giving out some tokens in return.

Then you go on wasting so many words on declaring "ETH-WORLD will increase in price", "ETH-WORLD will be stable and banks will buy it" with zero backing of your arguments. This idea is nothing new. People have been trying collateral based stablecoins for a long time and are doing a much better job than calling a 42 point document as their "project". The time i wasted in skimming through that absurdity is now forever wasted.

This is just my opinion but I think the reason that they are afraid of cryptocurrency is that they might be redoing their system if they want to fully integrate it since there will be a lot of characters in an address and people can have a lot of addresses, imagine that many characters and millions of people using your bank, your system will have a hard time storing or in the least get a bit expensive.

Thank you for wasting your precious time reading my project. It is a pity that you did not understand its meaning. Obviously, not everyone is able to think adequately. Let me ask you what exactly you think is idiotic in the project, give specifics, maybe it will become clear to others where I am wrong.

Of course ideas like this are very interesting to discuss, moreover every year people who are interested and involved in cryptocurrency are increasing,
of course if we want to see banks being able to work with bitcoin cryptocurrencies need to be legalized worldwide as a legal payment,
I don't know if this can happen or not

I believe that banks do not accept cryptocurrency as they are two different systems and they cannot exist with each other. At the same time, there is a struggle between banks and cryptocurrencies, and if suddenly banks start accepting cryptocurrencies, it means that the current financial system is gone and another system came instead. But now it is too early to say, since it is not yet clear who will win this battle, bankers or digital devices.

Sooner or later, banks will still have to work with crypt currency, this is inevitable, which means they need a condition under which the crypt currency will evaluate financial assets as the dollar does now. I believe that both systems will work depending on each other. If now the young decentralized one depends on the centralized one, then in the future everything will be the other way around.

Before starting this project, you should have a strong banking background yourself to create ideas that are not against regulations.

Back to the subject title... Why don't you ask the bank itself? It is not the independent desire of bankers to want to update their financial systems, but regulations still regulate them or they are not allowed to operate. You need to keep in mind that there are several points in blockchain technology that contradict how banks work.

The simple thing is because banks use a centralized tied system, where banks are too tied to government regulations, while crypto offers blockchain technology which is a decentralized system. it is certainly the opposite and it may be difficult to implement blockchain in such a complex system

The main functions of banks:
• attraction (accumulation) of funds and their transformation into loan capital;
• stimulating the savings of depositors;
• loan mediation;
• intermediation in payments;
• creation of credit instruments of circulation;
• mediation in the stock market (in transactions with securities);
Which of these features does my project contradict?

I agree. One of cryptocurrencies' nature is being volatile. I think its volatility rate is one of the major reasons why banks don't want crypto on their platform. With one major drop, their generated profits has a high possibility to become losses. The frequent price fluctuation of cryptocurrencies is just another whole new level of challenge for them if ever they will risk their chance on it. You know, central organizations are still businesses after all. That's why i totally understand why most of them are really aloof with the idea of adopting cryptocurrency.

In addition, government permission also plays a great role. Banks need it in order for them to adopt it without violating the set of policies and regulations. If the government will continue to tighten their grip on cryptocurrency, banks will really have a hard time accepting it on their platform since the higher authorities are still unfavor of it.

Why would banks want to work with a decentralized system? Wait, more importantly, why would we want decentralized currency to work with the banks? Banks are centralized institution controlled by the government. If banks starts working with bitcoin, and you join them, then you will no longer have the "power of decentralization". People like bitcoin because they can send it instantly from one place to another without any third-party interference and according to their own will. That won't be possible if you do it through banks. Moreover, the bitcoins will be no longer yours since you won't own the keys. Banks will be the owner of the coins and you may lose your access to the coins anytime.

That's right! Banks are centralized wherein it is supported by the government while Bitcoin or cryptocurrency are not supported by many banks and if cryptocurrency works with the bank then probably cryptocurrency will become centralized also and the so-called decentralized cryptocurrency will be no more. Banks are using 3rd party interference and that's also another factor why people are having fun and enjoying using bitcoin because by just using addresses they can transfer funds anytime they want.

Crypto and banks have one very big difference and that is their structure itself.
Banks are centralized while crypto is decentralized. This itself is enough explanation as to why they aren't working with each other.

Banks are often used as a third party whenever there is a transaction from Person A to Person B. With crypto, banks isn't needed because they can just transfer without them. With this, the revenue or profit of the banks will be affected heavily thus they don't want cryptocurrency. One thing more is that they can't control it that is why they don't want it.

The main functions of banks:
• attraction (accumulation) of funds and their transformation into loan capital;
• stimulating the savings of depositors;
• loan mediation;
• intermediation in payments;
• creation of credit instruments of circulation;
• mediation in the stock market (in transactions with securities);
who will deal with these functions in cryptocurrency if not a bank, you? In fact, the bank itself will transform its paper wrappers into cryptocurrency, this is inevitable.

- In this case, banks sometimes still allow us to continue to access but our incomes will be partially taxed and remember products with high profits will be heavily taxed, I don't believe that many people like to go public and give up a large portion of profits with a meaningless partnership with a bank while the good meaning of the product is about decentralization and personal control. Instead of that directly, we can always indirectly link crypto to the bank through online marketplaces and transactions, the two have worked together on the basis of anonymity.

The activity of banks is not limited to just mediation in transactions between person A and B, and this should not be the basis of their activities. Banks are enterprises that, instead of producing goods, are engaged in accumulating money, and then extracting profit from it. The interests of banks and cryptocurrencies may not coincide in some ways, but there are no cardinal contradictions between banks and cryptocurrencies. Everything depends on the further actions of financial regulators in different countries. For example, Chinese regulators prohibit their financial organizations from dealing with cryptocurrencies.

What you mention are just general banking features that are known to the public. I ask again, what is the actual mechanism for the bank to implement them? Are you sure there is no "secret system" behind it? Studying it is not enough just to consult an ordinary bank employee who has a limited level of knowledge. You have to take other approaches including "insider".

Simply put, we know that blockchain is a brilliant idea and was created 11 years ago, but why haven't banks adopted it yet if you think a change is needed? What's the problem?
I sm sure that your ideas have been thought of by others before you.

I swami agree that these ideas were worked out before me, but that is the question: all DeFi constructions are based on the monetary system of the dollar (Fiat) and are tied to it. I suggest something else:
What's the point of Stablecoins pegged to the dollar or any Fiat currency if you can print as many as you like? It is necessary, on the contrary, that the emission of Fiat depends on the total real volume of the decentralized world economy, and not on the whim of the local authorities, but these are my illiterate fantasies, ignorant.
Now, with regard to the functions of the bank, if due to the ban, other financial institutions in the form of various funds, insurance companies and, finally, stock exchanges will not be able to fulfill them, the holy place is never empty.

That's right, a lot of exchanges have already offered card services since a few years ago.

There's no need for it but the banks are free to move and adopt whichever they think is beneficial for them. If they want to add a crypto service then that's going to happen but are there many of their customers going to take it? likely.

But, we already have exchanges? Exchanges can do everything that you would want to do with banks these days, and some of them even go to the extent of offering card services to their customers, so that they will be able to make withdrawals with their cryptocurrency cards and also make purchases online.

If banks should start working with cryptocurrency, it is still the same thing that exchanges are doing that they are going to be doing, so I don’t see the need for it. There are a lot of things that banks has to be focused on and I don’t think that trading cryptocurrency should be one of it lol.

Gradual progress man, obviously it is not at the peak point right now but the adoption for bitcoin grown so much every year, it is going to be more and more places accepting bitcoin and eventually it is going to be easily in the banks. Let me remind everyone that in USA there are tons of weed business', they are not illegal because in some states weed is legal, in some its legal with prescription and in some its fully legal without any prescription at all, of course I am not talking about weed dealers, they are always illegal if you are not going through the right due process, but there are tons of weed dispensary in those states that gets checked constantly and sell some good weed that is very legal.

None of them use banks, NONE, you know why? Federal law says that you have to be in a business that is allowed in all states, or you would have to not use a bank at all, banks can't accept their money because it would be illegal money in other states that bank works. That is why we are seeing uptick in state only banks in legal weed states as well. This is 2021, we literally have banks not accepting fiat for this reason, so no worries on crypto just yet.

It's because cryptocurrency is decentralized and they need to make a platform where they can make it centralized or they can make money out of it. I have known a wallet/exchange that is regulated by the bank in my country and they did make money out of it. The only problem is that people doesn't have full access of the wallet(decentralized wallet) information but you have full control of your funds.

"Banks strictly prohibit financial institutions in Indonesia from using cryptocurrencies because this digital currency is not a legal tender"
 That's more or less the main answer to all questions apart from fluctuations, fomo, gambling, anonymity, Blockchain and regulation.  Is it possible to create a cryptocurrency currency for each country?  That is possible if agreed by the United Nations such as the IMF and WB.  then all will follow it

You have hit the spot. Everything that others said before you was also correct from the point of view of the existing monetary system. The future decentralized financial system will unite everyone on the basis of an independent assessment of the existing monetary in the transition to decentralization. What I mean.


In the near future, both systems will exist.
1. Monetary (domestic for each country)
2. Decentralized, external, combining all internal balances of GDP into a decentralized world GDP, which will be the measure of the world economy.

Well i think the more reason why the banks don't work with cryptocurrency is because there see crypto as a threat to their banking system, crypto solves alot of problems in the banking system in which this makes banks feel crypto will take all of their customers and instead of them to accept the facts that crypto is good enough when it comes to transaction across countries there discriminate crypto and only talks about the bad side of crypto without looking out for the advantages involved.

10,000 Financial Institutions Can Now Let Customers Buy, Sell, Hold Bitcoin Through Their Bank Accounts
https://news.bitcoin.com/10000-financial-institutions-customers-buy-sell-hold-bitcoin-bank-accounts/

The main goal of cryptocurrency like BITCOIN is to escape from centralisation of institutions like this. Instead of having this middle brokers, cryptocurrency decentralised this transactions and not needing ledgers managed by banks rather crypto uses computers to verify this ledgers.

So why these banks doesn't work with crypto? Simply because banks aren't needed anymore. Cryptocurrency is killing them and you cant work with what's killing you.

In simple words, crypto takes control away from the banks and gives it back to the people. Banks always want control within their grasp and that is the sole reason why crypto is often seen as a threat to the banks.

Actually, it is near impossible for banks to work in tandem with bitcoins because if you read the whitepaper of BTC, and if I remember correctly, the sole intention to create crypto was to take control away from the banks because of the way they treat people and how much control they had.

Something meant to destroy or disrupt the banking sector cannot work with banks, obviously. And the banks do know it very well, they are just helpless because they cannot control it.

How wrong you are! Control is always with those who have money and power. It is absolutely easy for banks to buy back and control all bitcoin. Who do you think whales and bears are if not bank tycoons playing through their brokers on the market?

I think everyone has valuable opinions regarding banks, and why not accept BTC in their systems, of course all part of a centralized system, how can you accept a decentralized system? Freedom, zero debt? But we all know that JP Morgan is very influential for the world of banks, in fact it owns the majority worldwide, it tests the technology with its own currency or stablecoin, it has made FUD to BTC, it has made FOMO to BTC, and finally I think it has been very opportunistic in the market and about its acceptance in the banking systems.

But unlike him, the president of El Salvador if he has accepted everything related to BTC, in their banking systems, payments, in everything, now in Miami they also want to establish it, then this is like: If you cannot against the enemy, join him.

The downside to all of this is that those who want to remain anonymous will find it completely impossible.

Cryptocurrency was created in opposition to the circulation of fiat money of states, and fiat is a product of the central banks of each state. Therefore, in general, cryptocurrency and banks will always compete with each other. This, of course, does not mean that there will be no points of contact between them. As a result, banks and cryptocurrencies will be forced to coexist with each other.

Traditional banks don't work with crypto currency, but things are changing fast and I believe we could already consider some investment platforms like Nexo, Celsius and Crypto.com as banks already, because they fully replaces traditional banking system with the advantage they let customers deal with crypto currencies of all kinds.
The only problem is that they don't give you the same guarantees a national bank would give. On the other hand, if we think deeply about it, even national banks can't guarantee your money will be safe, because they follow regulations from the government and if the government asks for customers' money (seizure), banks will concede it.

Primary reason for this is the government regulation towards cryptocurrencies. Banks are fully aware of sanctions being thrown to institutions practicing unregulated form or medium of exchange. Unless they see concrete laws and guideline on how government would handle cryptocurrencies, Banks would not touch this.

Banks did not accept any cryptocurrency because we all know that banks has a high standards about Money and cryptocurrency is a Volatile and they don't know if it is fake or not. But in reality Cryptocurrency is not fake you can buy any what you want using your cryptocurrency.

Banks have the means of injecting large liquidity to market slowly without anyone just like the way SpaceX was silently buying and accumulating bitcoin until they later made announcements and then everyone jumped in for quick gains.
However, central frown at banks activities in bitcoin because they believe they are very important to the society and doesn't want them to risk customers saving into bitcoin or Cryptocurrency since there is high chance of loosing the money and the bank may be liquidated the moment they can provide cash to customers.

I would say on the contrary, that the main reason for banks not working with cryptocurrencies is that the state does not regulate cryptocurrencies yet;) The banking sector is critical for the functioning of the economy in any state, so the state, represented by regulators, treats any innovations in this area with great caution and suspicion. Also, banking activities are strictly regulated by the state, and as you correctly noted, there is currently no sufficient regulatory framework in this area. Therefore, banks are not in a hurry to take initiatives in this area, because excessive initiative can be punishable here.

They are still considering the risks that will be accepted from characteristics that have not been fully accepted by the banking system, so they are still opposed to being official in the bank. Something between the real and the unreal (not formed) could be the reason the bank still rejects it.

Virtual currencies in some areas lack legal control, and the characteristic of cryptocurrency is that of peer-to-peer payment. From the bank's point of view, this will increase management costs.
Banks are always under the jurisdiction of the government, and banks will not choose to accept decentralized currencies without government approval.

I think that banks count cryptocurrency still a high risk asset. They are more afraid, that one day altcoins creator will perform an exit scam or will drop the price to zero, and the banks will have to cover all losses and negotiations with customer, instead of altcoins creator. There are no major support for crypto, compared with, for example, with US dollar. Who is behind US dollar ? Whole country. Who is behind dogecoin? No idea.

If I have $10,000 on my account, they cant just disappear or turn useless or crap. If I had 100,000 dogecoin on my bank account, there is a chance that one day they will become untransferable or useless. I will blame bank for that.

You are half right, not all cryptocurrencies are managed by the creator, for example, bitcoin, etherium, but banks do not work with them. You are right about one thing, banks are afraid of uncontrolled volatility and this is the main reason. When they develop a crypto currency that cannot be devalued under any circumstances, banks will be the first to capture the entire crypto market. For example

http://prosh.info/smart_eng.html

- When banks do not report, government sanctions are meaningless and I can say that every year, government organizations probably receive relatively large amounts of money from banks, punishment is sometimes just a valid piece of paper and does not affect the operation of the bank but openly working with non-regulated assets will get mixed reviews. Therefore, most banks are very strict with their organizational principles, do not arbitrarily work with crypto but voluntarily act as intermediaries.

It is just what you say. It is highly dependent on the country you are living in, but in many countries there are laws that prohibit banks from dealing with unregulated assets, whatever that may be. In several European countries banks even froze accounts during the early Bitcoin days just because someone received money from someone else for selling Bitcoin on an exchange. That is no problem anymore and the banks I know allow for Bitcoin trading and sending and receiving fiat via their accounts for Bitcoin related activities.

Banks holding crypto themselves and even transacting with it is becoming more and more popular. Although platforms like Corda show that banks are interested in co-developing the platform they are ultimately going to use. Ripple also always worked very closely with banks. Whether they ever will be using Bitcoin on a large scale, I don't know.

My wild mind says that they don't want to deal with assets that are easy to bubble just because of a pump, I myself said it would be very difficult for Crypto to be trusted to become a legal transaction tool in all countries because of the concept it has.  How can the government want to relinquish their authority in managing fiat while in crypto there is no centralization of currency in crypto.  All are free without interference from the central bank and any country.

Until a decentralized stable coin appears on the crypto market, banks will not invest their assets in cryptocurrency.

LOL.. why should the banks work with one of their competitors? It is like saying that Coke should distribute Pepsi in their corporate office. One of the basic concepts of Bitcoin is to avoid storage of money by third parties. If you have some coins, then you can store them by yourselves by creating a wallet. You don't need the help from a third party like bank. And this is an existential threat to the banks. If people can store their money by themselves and can transact them as they like, then why should they be dependent on the banks?

Strange people. Are you going to give out loans to yourself in the place of the bank, charge yourself interest for storing in your wallet?

You get interest on your fiat deposits on banks, because fiat currency is susceptible to inflation. So the interest revenues partially offset the loss that you incur, while holding fiat currency. It is not applicable to currencies such as Bitcoin, which are protected against inflation. So you will never receive an interest on your Bitcoin holdings. There are websites such as Nexo and BlockFi which offer an interest, but I would warn you against moving your coins to these schemes. Their business model doesn't look viable for me.

And for loans, obviously you need to depend on banks. There is no other alternative. 

Banks are controlled by the government,  and unregulated systems like Bitcoin and other cryptocurrencies are a threat.  There is a big difference between traditional currencies and cryptocurrencies. Banks use conventional currencies in various ways to meet various needs of themselves and the government, and print additional currencies when necessary. Cryptocurrency is decentralized and the government cannot control it, its number is fixed and limited. If the bank uses cryptocurrency, which will result in the loss of their profits.

Because the bank is dependent on the government, if the bank uses the fiat currency system, we will have some details of the transaction information for payment. If the money in your bank card is stolen, the bank will help you get it back. If your funds on the chain are stolen because cryptocurrency transactions are more confidential, then the money on the chain will not be able to be retrieved. Moreover, the money used by the state for printing money will be deposited in banks. If cryptocurrency is used, the country does not need to print it, and the bank's profits will be reduced. When a bank uses cryptocurrency, it proves that cryptocurrency is no longer confidential. Our information may be leaked.

That number should have reduced in number by now. Most of this banks followed directives and institutions from above and can't act on their own. The moment they decided to offer a service that isn't supported by central banks, they have to obey and disabled such services, this is what is exactly happening today in crypto.
Binance and UK regulators are good examples and look, other countries are already doing the same thing by canceling their crypto service to crypto exchanges.

It's not about having high standards. Talking about standards, blockchain and crypto is a revolutionary tech on its own that has outmatched VISA/Mastercard - these are the payment processors and providers for majority of these banks. That said, it'd not really about their standards or the fact that their products are much more superior to those of crypto (its not!).

The reason is most likely linked to the unclear regulatory background that surrounds crypto for a long time. I think that if these regulatory issues become a thing of the past, banks would be eager to add crypto products and services to their portfolio list. Don't forget that there's no way of going against the government especially when you're in a direct relationship with them.

For they will not change the system but they will adopt the certaim changes on technology also we can't deny that crypto don't have protection and prone for manipulation so expect that financial institution will doubt to work with this since this could cause a financial losses to them or to their depositors if bear market happens. I know the volatility is the main problem here and traditional investors really doubt about its stability.

The government do not allow banks to fully engage in such activities. Banks is centralized and is controled by the government.  But digital currency  is decentralized,these two are contradictory sides.

As far as I know, banks can deal with Bitcoin (in most of the countries) only if it is declared as legal tender in that country. Here in India, the banks are allowed to deal only in the national currency (Indian Rupee). We can't open our bank deposits in US Dollar or Euro, because they are not recognized as legal tender inside India. But all that said, it is not right to say that the banks are "controlled" by the government. Banks just need to follow the regulations that are set by the government. That is it. As such, they are not controlled by the government.

Banks are centralized, and it is an area of ​​government supervision. The cryptocurrency is decentralized, free from anyone's monitoring and restriction, and cannot provide guarantees like the National Bank in case of transaction errors.
Due to its volatility and unstable prices, cryptocurrencies are prone to economic losses for investors and are risky. The legal currency will not appreciate or depreciate sharply and is relatively stable.

I think that's why other banks don't want to work with cryptocurrency because maybe they are afraid that the products and services they offer will be ignored.  They may lose a customer who will store money with them that they use to lend to others to make money.  But they are also thinking about the cons of using cryptocurrency like the ones mentioned in the post above.  Fortunately, here in our country, the central bank is open, friendly, and supports the use of cryptocurrency.

This is just my theory it has something to do with how banks work, they operate on fractional banking reserve, meaning that they can borrow money without some sort of collateral. So in relation to that system, it also means that banks don't have a lot of money all the time, that's why some people suggested that anyone bankrupt a bank if a lot of people withdraw a lot of money from one branch, I think that's probably the reason why they didn't have crypto in their system because they want to prevent something like that from happening.

Exactly, if banks go into crypto then the government cannot control money and of course this is very risky for the country's economy, the government does not want to take risks by making crypto as fiat for fear of being rivaled.

Banks are centralized and if they are going to be handling any cryptocurrency, it’s going to be centralized digital currencies that are being issued out by the central banks of that country, and not the decentralized cryptocurrencies we both know. So, don’t expect them to be dealing with cryptocurrencies.

I cannot even imagine myself going to the bank to exchange my bitcoin, lol there is no way I can imagine that. I would prefer that I just login to exchanges such as Binance and coinbase and exchange my bitcoins there and then transfer the money that I have gotten to my bank account and that’s just it for me.

Another reason banks offer interest rates is that they are competing against other banks and they want to get your money on their coffers so they can lend it and play with it so they offer those interest rates, however bitcoin does not need to do this as people come on their own to exchange their fiat for bitcoin while banks have to literally bribe customers to staying with them, and when it comes to loans peer to peer loans are a thing so even banks are unnecessary on that front too.

right, simple thought. for ourselves indeed with cryptocurrency, we can make money to meet the needs of life which can be paid for with fiat money. so from that we exchange it to fiat money first. on the other hand banks are under government agencies, so they may not dare to take steps without government regulations, so I don't think it's our authority to urge banks to immediately accept crypto, maybe it can happen, but maybe for generations after us

it is clear that banks are basically under the control of the government.
it's true it would be great if banks could work with crypto but politics isn't that easy my friend. when an agency is shaded by the government, they will automatically use the rules in accordance with what the government proposes regardless of whether it's good or not because of course the government also doesn't want to lose from this.
and if banks cooperate with crypto, automatic dominance and government monopoly will be a little more difficult because their control will not be strong anymore because crypto is very difficult to control

Erm... Sorry, but I guess I would have to contradict here. Do you really think banks are not interesting in dealing with assets that are easy to bubble? Seriously, they are very interested in dealing with such assets. The reason is quite simple: if they facilitate credit to get the housing/real estate market to bubble, and then see the whole market crash and real estate owners can't supply sufficient collateral anymore because of the decreased real estate value, banks are in a perfect position to now get the collateral at lower prices back than they initially were willing to finance it for.

This procedure happens in cycles again and again, and following this pandemic and potentially crashing real estate prices, we might be going to see a scenario similar to 2008, one of the biggest bank made bubbles the world has ever seen.

"Why don't banks work with cryptocurrency?" Good question. But the answer is simple - for the same reason:
- you are against getting paid for your labor in cowrie shells
- you do not want cowrie to be spent only in a grocery store, but in order to refuel a car, you need to look for a job where fiat or squirrel tails are paid.
- the vacation can be paid only with beads, but they are sold only for euros.
- the euro is paid only in the EU, in other countries the euro is exchanged only for postage stamps with cities.

I hope the meaning is clear? To put it quite simply - fuck they need an asset that is not manageable, volatile, has no simple exchange mechanisms, and most importantly, it does not have an official status of a payment mechanism

Accepting crypto is of course very risky because of price fluctuations which are like a roller coaster, besides that banks must of course comply with state regulations to maintain fiat so that it is impossible to make crypto as a bank service product.

Government disallowed banks not just because of its decentralization, they afraid of the illicit actions of banks management that may follow.
60% of deposits in banks belong to customers and the affairs of banks are to manage them and accrue interests but what will happen when banks use all his customers money on crypto and the whole things crashes, that will be suicide to everyone especially now that it's not regulated and controlled by small groups of people.

But that shouldn't stop them from working together, decentralized only means that there's no authority at the top that dictates what they should. I mean some banks are offering cryptocurrencies in their services and they are doing just fine so it's not like it's not a doable thing.

crypto doesn't have to be about bitcoin or ethereum, they can create their own crypto that is private and has a stable value. it is unlikely that they will adopt a digital currency that has a very high fluctuating value because it can cause a sudden decline and development of assets.

I don't think it will be as simple as what you say because even though the bank can take collateral for the credit given, the bank will still have problems turning the assets they take.  Like the case of a bank in my country, default on the credit given has a bad effect on the bank.  Bank health is very important for a country because 1 bank in trouble in a country will usually attract other banks.  The financial sector is the most sensitive to the country's economic stability.

Well, they are not under control of the government, but under control of the law. Sure the law is made by the government. But if you see it this way, you can also say, we all are not free because we are under control of the government, too. There are some regulation laws and back must be lawful according to the regulation laws. In crypto just as in other asset forms in which they invest.

Well, that means that banks and government always regulate any financial institutions --the real problem here is they cannot earn money if they will accept bitcoin and it could destroy the financial system that was the government live for. The tax that makes the country fully develop by constructing building infrastructure, roads, and others that come from people's money is the only source where the country needs as recurring expenses can be like salaries paid to government servants. If bitcoin will replace fiat? Then bitcoin is not a taxable asset, where our government will collect the fund so that our economy will survive. Let us accept the fact that bitcoin is only good for alternative currency, not our main fiat or even a safe haven of storing the value.

Banks are subject to government-controlled central banks, which are subject to government supervision and control. Bank transactions must involve their use of interest or commissions, which can benefit from them, and the use of cryptocurrency will affect their own interests.
Cryptocurrency is decentralized, it has anonymity, such as the use of cryptocurrency for illegal transactions, it will be difficult to trace encrypted transactions. And the price of cryptocurrency is volatile and it is difficult for banks to obtain a fixed profit from it.

the crypto system is very different from the bank system, where the crypto system can stop the bank's income as pasif income , and not to mention the government policies that control the bank itself, moreover banks can't track crypto transactions, there will definitely be a lot of abuse from crypto itself  such as money laundering, and illegal trading with cryptocurrencies.

Well, I agree with this opinion. Bitcoin, which has a decentralized nature, is an independent financial system that is managed by individuals without having to be regulated and controlled by the government. It is unlikely that banks will work for cryptocurrency. After all, cryptocurrencies and their wallets are everyone's bank. Crypto wallet owners are free to use their money. Unlike traditional banks.

Banks are functional under the law created by government. Maybe in future this can happen, as banks are experiencing massive loss due to the increasing usage of cryptocurrencies.

Already few countries have created their own cryptocurrency, and those might work along with the banking infrastructure of the country. Atleast now we've got more countries providing regulations to be followed for cryptocurrency usage. This itself a good move, because earlier more banks stopped services for cryptocurrency related activities.

In my opinion you have it backwards, it is the banks that are in control of the governments and they are pressuring the politicians to not pass laws and regulations that are favorable to cryptocurrencies, and it is not difficult to understand why this is the case, cryptocurrencies are direct competitors against banks and banks for the most part are a monopoly and they do not like the idea of sharing their power so they're going to do everything that they can to avoid this scenario and will only cooperate once it is clear that there is no way they are going to beat this market.

Banks are regulated financial institutions and will follow whatever the government says through a central bank as its in charge of legislation of laws of the state.

If a bank fails to follow what it's expected of it, it has a lot to lose, which is why if the government says cryptocurrencies are banned in a country it wouldn't want to risk losing its license and existence for not abiding to these laws. I also think the bank doesn't like crypto because it could lose its business to it.

I agree with you on the point that banks are afraid of cryptocurrencies replacing them, but it don't think that they are the ones that are directly influencing that decision, if you think about it the central banks controls all the other banks which is controlled by the government, because the value of a fiat currency is based on the economy of the country which is controlled by the different sides of the governmental institutions, which means that governments are the ones that control the currency, and by using cryptocurrency they won't be able to control it.

Those are some reasons, same time these banks don't have a positive thought about cryptocurrencies. Some has begun to work with cryptocurrency, whereas majority of the banking services find it a threat for them. When something breaks the intermediary need, automatically it gains importance. This will make them have cryptocurrency out of their control unit. This will change as countries have begun to legalize cryptocurrency usage.

They can't, crypto isn't a stable asset it's highly volatility and far different from money, it's going to be hard to see crypto and medium of exchange really because the volatile part doesn't guarantee anything

Because banks rely on the state, the state controls people through legal currency, and most people will also believe in the state.
All the banks where you spend with fiat currency have records, he will know what all your funds have done, and he will collect taxes based on your expenses.
If you use cryptocurrency, no one knows what you consume and what you buy, it's free.

I don't know which country you are from, but wealthy banks from the United States no very well that the economy works in cycles. From time to time we might see gigantic failures like Lehman in 2008, but usually banks are just healthy enough to play their game into the next cycle. A lot of people could buy houses because there were also sellers at the peak. Why was there sufficient supply to meet that high demand? Because the rich and clever knew that the market is peaking and they expected to find themselves in a situation later on to buy back cheaper than what they sold for.

In many countries the central bank is not controlled or owned by the government, and in the case of the most important currency around the world this is the case so I still think that banks are the most directly interested in not allowing bitcoin to flourish, but at this point it is too late since there is nothing they can do to stop bitcoin, however I wonder that happens next as I think banks will most likely try to do to bitcoin the same they did to gold and in that instance there is not much we can do to stop banks from buying bitcoin and then store it, decreasing the supply of bitcoin available to the public forever.

It's a good explanation. But actually, banks have started to work with cryptocurrencies these days. For example, some banks in Texas, USA have started to give place to cryptocurrencies in their system also. And I've heard about some European banks also that they started to do so a long time ago. I think banks are doing this because they don't want to miss the opportunity to attract crypto users.

Minor banks you called banks? Those are state banks and aren't that pretty much as people actually wanted them, I also think that those banks are actually getting something from customers either high fee charges or some commission, banks are very wise, they hardly give except for lucky family bonanza.
Banks are becoming difficult for everyone as they are also reported disallowing deposits and withdrawal, they are never friendly.

it seems that now many banks have started adopting cryptocurrencies. recently i heard that the ukraine state will issue their own crypto and will legalize cryptocurrencies soon. I think after this more countries will issue their own crypto and start legalizing cryptocurrencies.

Most of banks are still not working with Bitcoin or any other cryptocurrency. But I believe that it will change in the future. Banks will even line up to do so. Because they won't be able to do without digital currencies. Every day, more people join the digital money world. And at some point, we will stop using paper money also. Then if banks still resist, then they will be gone one by one.

Very few countries have banks that operate with bitcoin and cryptocurrency. Banks always want its userbase to function under their control. This becomes a hard thing to be done when banks starts to operate with cryptocurrency. Apart from this banks think of hacks, because a single security breach into the banks vault will cause a big loss to the banking system. Though the technology is highly secure there is chance of security breach. Some are interested on the blockchain technology for its good, but hesitant to use cryptocurrencies into banking system.

maybe they can cooperate with crypto but they must be prepared to lose some of their profits even though the profits of others will increase.
because basically we all already know that crypto has a decentralized nature. from this alone the bank can no longer interfere and it will be very difficult to track the system that is in the bank and crypto is different.
on the other hand, there may be several banks that have started to open up and collaborate with crypto. but it's just an alternative payment method and an option other than that the rest is to increase the centralized currency

It looks like *investment* banks are increasingly getting involved with Bitcoin and cryptocurrency instruments, probably pushed along by requests from their clientele. Laws had to be made up especially for these financial contracts and regulators are usually quite far behind when it comes to the latest trends. However traditional banks are quite rightly wary of cryptocurrency because essentially if it is adopted on a mass scale it would make a large part of their functionality obsolete. That being said, their could be specialist banks (maybe that is what certain exchanges are aiming to become) which offer these abilities, but every customer would be expected to go through a process that eliminates their anonymity if they needed to follow anti-money laundering specifications.

If they start to collaborate with bitcoin to their services, that will be the usual thing that banks do and that's with the loans.

There's trust and confidence with the banks if they're going to do that but how they will determine the value of it and quantity that they'll put in loans.

It's a complicated thing to them at this stage so this will just move on them slowly.

Inestability is not a real problem, banks have worked with mortgage backed securities in 2008 and everyone knew that these were not really stable not worth much for that matter, yet still they sold them around until the last fool standing saw them drop to zero. Anyway, crypto can be used as any currency with fluctuating value - that is all of them - even banks will use turkish liras and the like when their clients demand so, so crypto is not different nor should be.

I wouldn't say that they don't work with cryptocurrencies, no, some banks are really interested in it but they don't act directly. More likely I would say that every bank is interested in it but the way they express their interest is very different, some of them want to adapt it, some of them want to conquer it and some of them want to get rid of it.

As I said, some banks are really interested in it and isntead of directly accepting the crypto, they create 3rd party companies, partner with them and offer bitcoin exchange that way. For example, imagine I have an account in HSBC bank and HSBC owns a company similar of Webmoney. Webmoney on another hand is a whole different experience that offers me to store some $$, pay bills, deposit on gambling accounts, etc but... It also gives me possibility to receive the crypto and convert in into USD or other currency. HSBC can't do this but their partner Webmoney (just saying) can do it legally because similar financial providers are rarely regulated. I deposit crypto on webmoney, convert in into USD and because of HSBC/Webmoney partnership I spend my $ on HSBC bank account and then do whatever I wish.

Banks are indeed very difficult to work with cryptocurrencies, because both have different systems. Moreover, banks are very easily controlled
by the government, while we knows crypto is decentralization, which cannot be controlled by the government. With some differences that exist
in the banking system and crypto, finally crypto is only possible as an alternative payment. Even in some countries crypto is still considered
a threat to the banking system, so only allow crypto as a digital asset.

There is a medium acceptance  with certain banks that are already "playing" Bitcoin and even creating possible commercial alliances with small FINTECH, in Mexico BBVA has managed to finance entrepreneurs  creating commercial channels.

There is no direct commercial relationship but it is being created indirect commercial associations that allow you to start having experience with Bitcoin.

Other examples, Europe specifically BBVA.Mc from Spain:

^{Source: https://www.reuters.com/business/spains-bbva-opens-bitcoin-trading-service-clients-switzerland-2021-06-18/
June 18, 2021. Last Updated 2 months ago.}

What crypto differentiates from banking system, is that they can't fully control crypto transactions. Whereas, as we all know, banking system is centralized where the government has the full control on the system. They can only accept it as alternative payment for the moment but totally adopting crypto is still far from their horizon. Just be glad that the adoption of crypto right now is booming owed to this pandemic. A lot of merchants are looking for alternative payment options. And crypto is a very good candidate on this.

It's true that Decentralization and volatility are the key factors that the banks don't work with cryptocurrency right now. The banks, as well as the government have no authority or responsibility when it comes to cryptocurrency. And also because of anonymity that make it impossible or difficult to find out who owns or use crypto for any transactions and that kind of information was very important to banks. It is more advantageous for banks if the people continuous to use fiat system and they are already nervous with the existence of crypto.

But at thought of banks working with crypto.. I think it is possible. Crypto adaptation is growing and still happening. Everyday new people are engaging themselves on it that threatens banks. So I think banks are probably planning or thinking on how they can also adopt crypto, thinking on how they still make it profitable to them. Though it was hard for them but they need to come up with a solution so that they can still go with the flow and not left behind.

I think banking will embrace and embrace digital currency. it's only a matter of time, indeed for banks the presence of cryptocurrencies is a scourge for them. but I'm sure after all the systems are studied and mastered by them, the crypto currency will become a new business field for the banking world.

In all, I believe that is the major issue cryptocurrencies have when it comes to seeing it as a means of exchange and on a positive note, why people are more into crypto. If there was no volatility in crypto, there wouldn't be the king of profits that investors get from it and wouldn't have been investing in it that much. So, what is a positive for crypto investors is what makes it difficult as a means for exchange hence, it is different from money.

It is true that government regulations are one of the barriers to crypto as a currency, because not all countries accept Bitcoin. Some countries do
only allow Bitcoin as a digital asset, then it is very difficult for Bitcoin to be accepted in all countries of the world as an alternative payment.
But I believe in the end the government can realize the benefits of Bitcoin, it does take time for Bitcoin to be accepted by everyone. Meanwhile for
people who live in countries where the government has not given permission for Bitcoin as payment, should be grateful to still be able to use Bitcoin
to make money.

Yes, it's one issue to the banks.

A highly volatile asset can't be accepted by them and most of the banks aren't really looking forward in adopting cryptocurrencies with their services.

But there might be some open-minded banking management that shall adopt this soon in the future. The crypto market is showing unstoppable potential and growth so they won't ignore it.

My instinct is telling me that some of the banks may partially be working with cryptocurrency, they might not bring it to the table for everyone to see but some might be trading anonymously.

It's hard to confirm that statement since we don't know that there are are banks really do that but what we can see right now is they are not engaging with crypto stuff but hopefully this institution will work with cryptocurrency since if they do that for sure this one could boost their growth as many bitcoin users or whales really want to secure their money on legal institutions but maybe we could see this happen once government will successfully adopt bitcoin.

My opinion is that banks do not want to use crypto because it is not safe, at no time does it know if you are going to be at the top or at a low that you will not be able to get out. So the banks can't afford it. They are safe institutions and if they lose money for some cryptocurrency then what will happen to them? They have to raise%, to ask for more from people or on a bad occasion - close.

By adopting Blockchain technology in the banking system, the bank will not have more flexible control over its customers. This of course will limit the space for the banks to manage their customers' finances.
Besides we do not know clearly, what the money from customers is used for, the controllers of the customer's money also certainly have a threat to the assets that we keep in the bank.
We know that every bank takes advantage of non-transparent money services. In fact, many banking cases are actually very detrimental to the customer. This is because the customer's strength to fight is not strong and does not dare.

People do not know but actualy they are working with crypto specially with EFT's and since 2017 we all know central banks interest with blockchain even some central banks was working with ripple but idk what happened. So My opinion is since 2025 Those interests will be more solid.

Blockchain doesnt totally mean that it would really be considered to be totally opposing banks or centralization because it would rather be helpful and beneficial when it comes to transactions although it would be all
transparent and could be seen on the blockchain which basically means that there would be no transactions that could be hidden neither doing some inbound or outbound transactions and this is where some
institutions doesnt really prefer on adopting it specially with banks.Hate to say but centralized things would totally not like decentralized ones .
Lets see on how long they would really be waiting up for it to be considered.

There are just too many reasons to why banks dislike bitcoin, firstly take not that bank is a regulated entity and won't love to work with an anonymous asset, secondly there are being fed with taught of bitcoin filled with many illicit activities like money laundering, illegal transfer of funds etc, just too many to mention but the early there get to see the importance of bitcoin the good for them, the fact here is bitcoin can be used for both good and bad, it all depends on the individual.

The negative interest that is always highlighted from bitcoin not being usable can actually also be overcome by the government. but it is a government regulation that cannot be violated so that banks still use the conventional method. Actually, even though anonymous can be seen, the last transaction to be converted to fiat money must have an identity listed, so I don't think it's purely anonymous either

Yeah but I believe as it is now, some Banks are offering their customers cryptocurrency investment in some countries already like in the US.
 
Wells Fargo: US bank set to offer crypto fund to rich clients  (https://www.bbc.com/news/business-57147386)

I also believe that other banks in the US are doing a similar thing

 Bitcoin is coming to hundreds of U.S. banks this year, says crypto custody firm NYDIG] (https://www.cnbc.com/2021/05/05/bitcoin-is-coming-to-hundreds-of-us-banks-says-crypto-firm-nydig-.html)

Bitcoin as far as it is now is becoming inevitable and sooner than later most individuals and institutions will have to jump on it.

If the bank uses cryptocurrency, it means that cryptocurrency no longer has anonymity, and every transaction will be recorded.
The advantages of cryptocurrency p2p will not exist. There is also the existence of a third party.

actually all the negative things can be avoided if the government regulates bitcoin ownership. all these bad things happen because there are no clear rules regarding bitcoin so that anyone is free to buy and use bitcoin. each country must strictly monitor the circulation of bitcoins so that suspicious transactions can be detected and reduce the adverse effects of bitcoin circulation.

Banks and crypto are difficult things to put together, if banks accept crypto then their function can only be like exchanges which of course is nothing new, maybe the best way is for banks to make crypto as a product but the risk of profit or loss of course cannot be controlled.

I agree, where banks can make crypto as their product, where this is like saving money but has a legal umbrella, but unfortunately at this time there is no such program. maybe for the first time that banks can use is a blockchain that has many benefits. and this is inseparable from the role of the government which will provide policy, because we know that banks are under the control of the government

- Banks are also not a legal environment as you think, there are some money laundering activities from businesses that are supported by banks, the problem is just an outlawed agreement between organizations, the rate of profit as well as the level of risk avoidance, the bank only works for the top institutions in such a style, in return for a long-term cooperation. The coroner also couldn't verify, the numbers were changed too small and faked too much, sometimes crypto is also a little corner of their office with secret numbers

Banks could definitely may have a problem and that is going to be the main thing. If the banks are very happy about it, then it is the future of where crypto will be going, and that’s great, we could definitely end up being 1+ million dollars. However at the same time, if we are going to end up seeing banks doing bad things and trying to prevent crypto then that is going to be a horrible thing as well.

This is just how the situation is right now, we may or may not see something good with crypto and that is the trouble depending on banks. I have seen a lot of people from banks saying bad things, I have seen many hedge fund level bank related stuff end up getting into bitcoin as well, I have seen both sides. However, there is a wider bigger banking world when they get together and decide on something and this means that we may get a bad or a good result from that.

If bitcoin was anything other than a currency you can be sure that they would have adopted bitcoin already as it is widely known that banks have no problem investing in all kind of speculative assets as long as there is the potential to make a lot of money, the problem is that bitcoin is a direct competitor to their business, and not only it is a competitor it is probably the biggest competitor that they had to face during the last centuries and they do not like this one bit.

The difference being with Bitcoin that banks are not the ones who earn a fee from every single transaction being made on the Bitcoin network. Earnings from transaction fees in the banking system are the easiest earnings you can make. It is all automated and you just let it run and take a cut every single time someone makes a payment. They don't have that guaranteed income anymore if a currency like Bitcoin would overtake that role and destroy that business branch for banks. Not that banks make most money with transaction fees, but as I said it is the easiest money they are making by far. They also have less data available if their customers use Bitcoin instead of their own bank accounts. That's again something banks want to avoid.

That is without a doubt a problem for them, after all it is almost as if they receive free money out of those transactions and not only that banks charge you a fee that depends on the amount of money that you are sending so the fee can be very high if you are sending an amount of money that is very high, but when it comes to bitcoin the fee depends on the size of the transaction and how long you can wait for it to be confirmed which means that someone can send a fortune and pay very little in fees.

I have the feeling that they are in but since they know is risky, they wouldn't disclose it to the public especially when they know that central banks will harm their reputation.
Sometime before the ban of bitcoin in my country, some bank workers were expelled for risking and using customers money to buy bitcoin and after the last collapse, they couldn't balance sheet the money they took for investment.

Most of the time banksters would really be hating up Bitcoin or crypto generally due to its characteristics which is totally opposing centralization so its no brainer that they would really be hating crypto
wont tending to make out some integration in terms of payment system but talking individually then we dont know that theyre accumulating silently specially to those whom do see that it could really
have the potential to make profits and not really minding about on what would others said but its just dumb that they would really be making it obvious.Everything would really be silent
in terms of accumulations even though its not proven but its likely that it is happening behind.

All your statements sound true and so reasonable. Of course banks don't want to have anything to do with cryptocurrency, especially this thing can actually be such a great threat for their existence. Other than that, cryptocurrency is really hard to control, and really risky as well compared to fiat, of course they don't want to take the risk and prefer to play safe, stay in their comfort zone that has been going for years.

The main reason why banks don't work with crypto, it's because decentralization goes against what they believe in. Fiat is centralized and heavily manipulated by banks, while that's not the case with crypto. Something banks can't control will be considered a "target" to them. Some banks are offering crypto services in order to gain a piece of the pie. But the vast majority of them are skeptical because of reasons mentioned earlier. I'd prefer banks to stay away from crypto, as they could harm the decentralization of the Blockchain in the long run. As long as decentralization prevails, people will have an "escape route" from the current monetary system subject to manipulation, fraud, and corruption. With how everything's been going lately, it seems that crypto and banks (Fiat) will co-exist for many generations. Just my opinion :)

This is not exactly accurate, banks love risk and because they are necessary for the economy to work if they take a risk and they lose then the government needs to rescue them as they are too big to fail, so it does not mater what they do they win, but they do not like bitcoin at all because they can see that bitcoin is a direct competitor and they see as well they cannot destroy it, so they are doing the best they can at the moment to slow down the adoption of bitcoin until they can figure out a plan to destroy it completely.

Makes sense. Credit cards and payment gateways represent a major source of revenue for the banks. If cryptocurrency becomes a popular mode of payment, then it will make credit cards obsolete. The banks definitely don't want this. But at the same time, the banks can benefit from cryptocurrency if they integrate it to their platform. Look at PayPal. They posted record profits this year, after accepting Bitcoin for the first time in 2020. The difference between mainstream banks and PayPal is that the latter looked for a mutually beneficial method where both the sides benefit in the end.

because banks always hate cryptocurrencies and think that electronic money is an unclear kind of money roughly "black money" for money laundering criminals so banks and laws in many places are still elusive. Concerned about the long-term viability of BTC, because BTC has no stable value and at any moment it will burst like a bubble.

Aside from that, their clients will find out that dealing with crypto will incur them very cheap fees especially cross-border payments. Fiat transfers are still expensive as compared to crypto. And also, since the government can't control all the transactions in crypto, for them, there are still blind spots and they don't know how to tackle it yet. But I guess, slowly, the concept of blockchain technology will be applied to banking industry.

Government-controlled central banks are in charge of banks, and they are supervised and controlled by the government. Bank transactions must include the usage of interest or commissions, from which they might profit, and the use of cryptocurrencies will impact their own interests. Because bitcoin is decentralized and anonymous, it will be impossible to trace encrypted transactions, such as those used for unlawful transactions. Furthermore, the price of cryptocurrency is fluctuating, making it difficult for banks to make a consistent profit.

I think that crypto usage is already taking a cut from banks and governments all over the world, and in future that cur will become bigger. I don't think it will be an easy road, until now we had a clear passage because many didn't get all this seriously, but that is changing and I think we will see some greater obstacles before crypto conquer the world.

Banks have been directly opposed to cryptocurrency since the beginning of the cryptocurrency journey. Because banks always think that cryptocurrency may take their place. Moreover Banks always give  antisocial The activity directly blames Bitcoin.

I agree most banks are always afraid their system will be replaced by cryptocurrency, whereas from the beginning crypto was created not
to replace the banking system. But as an alternative payment, which makes it easy for users to make financial transactions faster and cheaper.
That's because financial transactions using crypto don't need to go through a third party, as long as we use them. So it is indeed very difficult
to expect banks to cooperate with crypto, but it is not impossible for this to happen. I still believe in the future banks and crypto can co-exist,
although it will take a long time for that to happen.

This process is not so unambiguous and develops in different directions. There have been and will be obstacles in any case, because issues of public administration and monetary policy are vitally important for any government and therefore no one is going to arrange constant experiments in this area. The activities of the banking system are clearly regulated by the state and therefore it takes some time for a viable regulatory framework to be formed and banks could safely work with cryptocurrencies without fear of negative consequences from the regulator due to actions in this area. When all this is more or less settled, then it will be possible to talk about some kind of expansion or narrowing.

True, if banks legalize and accept bitcoin then it is the same as inviting people to leave banks because people can control their own assets without needing the help of banks, I believe that a lot of negative news about crypto is mostly from sponsoring banks, this I've seen economic discussions on television who campaigned negatively about bitcoin.

and don't forget to rate the bank, because banks are under the control of the government, where we know the system between banks and bitcoin is contradictory so for now the government doesn't want to lose control, so many countries have created their own digital currency, but this system seems only camouflage of the country's real money

Well.. so many countries have come up with Central Bank Digital Currencies (CBDCs), but it needs to be seen how successful they will be. China was the first, and they introduced the e-CNY (digital Yuan) shitcoin. And immediately after that, they implemented a crackdown against Bitcoin in China. But these measures didn't resulted in any improvement in the acceptability level of e-CNY. The writing on the wall is clear. Whether they like it or not, CBDCs will be considered as a variant of fiat currency and they will not be able to replace genuine cryptocurrencies such as Bitcoin.

In my opinion, banks do not work with cryptocurrencies because they are currencies that have been developed in complex ways and cannot be traced, as they are anonymous and there is no control over the transactions made by users and may be used in many crimes such as money laundering and cybercrime..etc. They look at Only the dark side. As for the bright side of these currencies and this giant technology, they do not look at.

It isn't a had thing to say that banks haven't been able to endorse cryptocurrencies simply because, the government haven't legalised it just yet. Its that simple to understand. Until the government of a nation rounds up cryptocurrency for a legal tender, banks would find it difficult to Its operation within there systems as, the banks are an instant of the government that functions under the control of the central Bank which serves government's purposes. The fact that, the decentralized nature of cryptos and the constantly fluctuating market environment plays a role, the government is the major force behind it not being endorsed by most financial institutions.

You are right but i've seen some banks in my country does really accept nor allowed crypto payments or transactions not like in most of those banks are blocking or closing up accounts which are in relation with those crypto transactions which is something that not new considering that decentralized things is never been compatible with highly regulated or centralized things.

Why would really bother? This is something which isnt needed for only one that do need to exist.They do serve out different markets which its understandable
on why there's some sort of competition, erring between the two.

  Although bank had a big responsible for the community they are just the one who holds the money cycling in the community and even there's a big Taxes by the Government it can't still bankrupt there bank because of the people who invest big and they just do the same thing. So the Cryptocurrencies is out of their mind and they just focus the local money.

No, it is well-known that many banks are interested in Bitcoin and crypto currencies in general. This was confirmed by various studies (https://www.teamlewis.com/magazine/new-research-reveals-extent-of-banking-investment-in-blockchain-and-cryptocurrencies/). 

Although many banks tend to be conservative and have viewed crypto with skepticism, they are increasingly driven by their own customers to offer crypto products. That's one reason. The other reason why many are still reluctant is the regulatory gap. Banks need secure legal foundations. These are not yet so elaborated and implemented in all areas that many banks cannot invest in crypto at all, even if they want to.

PayPal has started working with cryptocurrencies and it proved to be very profitable for them. So I am not sure why the banks can't do the same. It is not necessary for them to take a decision to exclude modes of payment other than fiat currency. And although it is true that cryptocurrencies threaten the current banking model, there are a few sectors where both the sides can benefit from cooperation. Cryptocurrency is still in early adopter stage, and if the banks incorporate it into their platform, then in the long term they will benefit.

If we talked about banking, we will collide with the ego of the institution, how can an institution that is formed on the basis of economists who understand centralization become the recipient of the notion of decentralization.  Crypto is an innovation that disrupts institutions such as banking.  There will be no need for a bank if Crypto is used massively.  There is no need for a bank teller and a sloppy customer service when we make small transactions.

This is indeed still an interesting topic of conversation about cryptocurrencies with banks,
when talking about benefits I think if both of them work with each other maybe they will get their respective benefits,
and in the future of course this will continue to be interesting and let's wait for further news

It seems that the survey in the article was addresed by bankers ( most likely bank officers ) in general not 'banks' in particular and also the survey was fielded this year according the article so yeah alot more people are getting interested with crypto because the overall marketcap of cryptocurrency has been growing significantly compared with last year


Everyone suddenly wants a piece of 'cryptocurrency' after the marketcap increased so they can get some profit out of it huh

They could work if banks would be accepting but due to decentralized aspect then it not really surprising that they would really be deciding the opposite.
Its not really needed for only single thing will exist because both could really serve up different markets depending on someones choice and preference.
When it comes to blockchain technology then this is something which is really considerable for banking system to adopt.

At first I think it's because the bank regulation doesn't work with crypto, the bank rules doesn't fit with crypto so banks sees it as a threat, and also another reasons banks doesn't work with crypto is because it's decentralised and gives users full access to thier money which bank in turn sees as a crime names money laundering. Also since banks is a centralised entity it's been afraid of working with bitcoin because there feel bitcoin is being used for illicit activities.

Which is why I think at the end the banks are going to feel forced to accept cryptocurrencies as they do not want to miss on those profits, but the issue here is that PayPal can get those profits as the number of competitors are small but once the majority of banks and similar institutions do the same then the profit margins will drop considerably, this will bring diminishing gains to everyone that adopts bitcoin but bitcoin will become stronger because of it, making some of the services that banks offer obsolete even faster.

Banks envy crypto because it goes against their rules. Something they can't control or manipulate would be considered a threat to banks and governments alike. Only a small number of banks (if any) are working with crypto in order to make a quick buck. But the vast majority won't take it seriously because of the reasons mentioned earlier. I'm fine with that as long as crypto stays true to its roots. Decentralization and censorship-resistance is what crypto/Blockchain tech is all about. Take that away from it, and you get nothing more than another "glorified" banking system. Expect to see constant opposition from banks the more crypto becomes popular in the mainstream world. With or without banks, crypto will survive as long as there's a community backing it every step of the way. Just my thoughts ;D

They are only fools to think that way. Banks are always self centered and never considered customer interests. Some weeks ago, I went to collect new ATM card and while I was waiting, I was looking at their exchange rate and interest rate digitally placed on a wall and the interest rate was just so poor and it got me thinking why would anyone want to save his money in the bank with that tiny return, that's stealing not investments.

Centralized cryptocurrencies are much more dangerous than decentralized ones, so your argument is not valid, as for losses due to volatility, I think this problem will be solved soon. My project confirms this.
if you don't believe it, you can see for yourself by reading it
http://prosh.info/smart_eng.html

True, the best concept of cryptocurrencies is decentralization, if cryptocurrencies are centralized it will make those who have control easily control prices as they like, and this makes asset holders can be lost at any time without reason or violation, prices go up or down of course because of transactions in the market and this is transparent rather than a centralized concept.

I have always wondered why we even call a coin a cryptocurrency if it is centralized because it is obvious that it goes against one of the most important principles of cryptocurrencies which is decentralization, those centralized coins are incredibly dangerous not only because once again you are relying on a centralized party to not steal your money, now they have so much control over it that it is fair to wonder if you have any property at all, which is why I do not recommend anyone to ever invest in a centralized coin even if it is created by banks and governments.

Anything that's centralized should not be called a "cryptocurrency" or a "Blockchain" per se. XRP is a good example of a distributed ledger that's utterly-centralized. Banks won't work with cryptocurrency simply because it goes against their rules. They will ultimately create digital currencies of their own with the intention of destroying cryptocurrencies altogether. After all, people won't need to use crypto if digital Fiat does nearly the same (except for the fact that it'll be centralized). Banks are still relevant even with crypto/Blockchain tech in play simply because governments endorse them. Fiat is attached to the banking system, so central banks won't be going anywhere. Crypto doesn't need banks to thrive anyways, as it was designed to be as an alternative than a replacement of Fiat currency. As long as crypto remains a decentralized and censorship-resistant kind of money, nothing else matters. Just my thoughts ;D

Banks are regulated and controlled by the government. Most people will believe in the institutional areas regulated by the state, and they think banks are safer.
Cryptocurrency is decentralized, and it will not be regulated by any government agency. When someone uses cryptocurrency for illegal and criminal activities, it cannot be tracked. If the bank uses cryptocurrency, it will improve the current financial system and incorporate blockchain technology, which will not be able to control users.

Currently during our age of fiat, we don't really have many laws and regulations concerning Bitcoin or any other of the cryptocurrencies offered on the market. This is really scary for banks, seeing as the legal liabilities are too risky for them to take any action of offering crypto. Its not even legally seen as money aka legal tender in most (almost all) countries.

In my own opinion, most of the banks are seeing cryptocurrency as a threat to their financial system. It’s because people are preferring more of a system that gives them full custody of their assets and transferring it from one account to the other without borders. This is what the banks are concerned, because people will be turning to crypto than saving more money in their bank accounts.

As the old saying goes, “Not your keys, not your coins.”

I don’t save much money in banks right now, as most of my savings are in crypto.

Yep, banks and companies actually have the obligation to be egoist and to cater only for the interests of the shareholders and many times just of the Management. However they will and do use crypto as long as they can actually fulfil this duty, so we should make it in their own interest to use and have crypto available by demanding it an going to those who embrace the change.

Banks have been around for centuries now, they are juggernauts with huge and archaic data systems driving them. They are also a business that relies on an immaculate reputation of trust, if their brand gets associated with.. let's say an exchange wallet getting hacked then it could absolutely ruin them and no bank chief executive is going to tolerate that. They are a business that naturally adapts slowly so it should be unsurprising to anyone that it will take them a while to see the value of Bitcoin. Cryptocurrency is also a direct threat to their business model which can involve taking small transaction fees at certain stages, but eventually they will come around the cryptocurrency - especially when you see other giants like Paypal trying to take a slice of the action.

If my idea turns into a real project, banks will be the first to occupy this niche.
http://prosh.info/smart_eng.html

51.   In a world where there are negative rates on deposits, there can be no successful development of the economy, so I am sure this platform will be in demand by banking businesses. The smart contract allows the owners of the ETH deposit, together with the financial sector (banks, funds, insurance companies, exchanges), to manage the entire crypto currency market. Stablecoins backed by ETH this could be (a new single world currency under the conditional name Phoenix, which The Economist wrote about in 1988, issue 306.) Stablecoins cannot be managed and it only obeys a simple economic law.
52.   When creating this project, I did not initially set myself the task of repeating BITCOIN or something similar. I was looking for solutions to preserve financial assets in cryptocurrency. With any volatility in ETH, the ETH-WORLD-Stablecoins asset grows. The maximum amount of the deposit, I suppose, will produce the emission of smart contract tokens 80-85 million Stablecoins, which means there are only 8-8.5 million free tokens, while the volume of the smart contract deposit will be only 50-60% of the total amount of all ETH.
53.   Free Stablecoins tokens not encumbered with an ETH deposit are an asset produced by capitalizing the entire deposit of a smart contract who has a controlling stake in these shares, he has control over the decentralized crypto market. Stablecoins, minted with the entire volume of ETH of the smart contract passed through the deposit, perhaps this is Phoenix...

That's one of the many reasons why banks don't work with cryptocurrency. The industry is still young and widely unregulated. Besides, not every bank will find crypto attractive because it goes against what was established in the first place. As long as crypto remains as a threat to the existence of Fiat, the number of banks (if any) supporting crypto will be little to non-existent. Crypto doesn't need banks' support to thrive thanks to the way it was designed. It's all about bringing banking to the unbanked in a completely decentralized manner.

Utility is what matters above all else. And I'd say crypto is extremely useful for day-to-day payments. It'll never replace Fiat, but it'll remain an alternative for those who need it the most. Instead of worrying about banks' support towards crypto, we should worry about preserving it for the long term. The more people join the revolution, and bigger and stronger crypto/Blockchain tech will be. It seems that both banks and crypto will exist for a long, long time. Just my opinion :)

Banks can't work with cryptocurrency because the will have difficulty regulating this coins due to its decentralized nature. Decentralized coins where government policies wouldn't affect and the banks wouldn't have the avenue to addup unnecessary incentives. And also cryptocurrency isn't stable and the fluctuation in price will make them run at loss

Banks don't care about that. It's not even a big reason to consider why banks don't work with cryptocurrency. Banks will not function to their original purpose if they don't have any control over their clients and customers. Not siding with the banks but their insured policies gives assurance to their clients that everything is in good hands especially in the case of money fraud, theft, and scams.

Another reason is the chargeback concerns. It's difficult to solve a case of crypto chargeback because, in the first place, there's no first place to start with the investigation. Known several people close to me working in a chargeback division and cryptocurrency-related transactions fraud is one of their number 1 problem.

Quite right, my project just gives full control over the borrowers. It is more profitable for the bank that the borrowers did not return the loan, since the price of tokens (collateral) will grow, constantly much higher than the borrowed funds. Thus, it turns out that the bank's profit is placed in cryptocurrency coins ETH-WORLD = Stablecoins, which is very limited by the final emission.

http://prosh.info/smart_eng.html

The government consider cryptocurrency as illegal, so why would they work with it?. Moreover, the popularity of cryptocurrency is increasing and more people have taken interest in investing to crypto instead of putting it in the bank. In their perspective, crypto is a big threat for them that must not be tolerated.

I think so. Most banks in the world do not like cryptocurrencies, they always see it as an enemy, which can cause bad influence. The crypto market is growing, the value is increasing, many people will invest in it instead of depositing their savings in the bank. I guess that's the main reason they don't work with cryptocurrencies

Banks require KYC for every client which is in fact it's a contrary to Bitcoin's nature of being anonymous, which seems to be a good advantage for the Banks as they can regulate the distribution of Crypto in the Market as I see it. But! Since Bitcoin is not relatively accepted by a Government, there are some who would tag it as Illegal, legal and neutral so technically that's one of the reasons why banks wouldn't want to handle Crypto since there's Rules or Laws that applies in the regulation of Bitcoin. Plus, the volatility of Bitcoin itself is quite alarming for the banks.

The main reason banks don't accept crypto transactions is usually related to legal issues, because not all countries legalize crypto as a means of
payment. There are even countries that prohibit crypto and consider crypto illegal, because after all banks are under government control,
so they have to follow government rules. Moreover, like you said banks have different rules with crypto, and also the volatile crypto prices make it
difficult for banks and crypto to work together. In the end most countries in the world legalize crypto only as a digital asset, and because of that
banks cannot accept cryptocurrencies.

For me is because the price of the crypto is not stable,it can also affect the profit of the bank thats not good in their side.I think someday many banks accept cryptocurrencies for many transaction but in legal process.

Human psychology is magical and the result should surprise you, many people still prefer low interest rates from savings in the bank, even if they have investments in crypto, a part of the income is also transferred directly to the bank account, the bank has never lacked customers for their savings packages. Bonds and gold as well as the value of corporate stocks, it also has a certain ratio that makes people feel no longer close to the bank but banks still know that successful professionals are few in number, losers will soon know the bank is the best home for them, not working with crypto are probably more obscure and undisclosed causes

instead of saying low words I might say that even if banks want to cooperate with crypto it will not work well because their systems are very different and cannot be combined with one another.
when the bank establishes a centralized system, it will be inversely proportional to crypto which does have a decentralized system.
it's so overlapping if they work together

there are several reasons why they don't cooperate and seem unwilling to think of bitcoin as existing.
apart from the memag system and the way they do it differently where bitcoin is decentralized and banks are centralized, banks also I think have something that makes bitcoin undesirable.
one of them is that when maybe the bank will cooperate with bitcoin, it means that bitcoin's right is something that is legal in the government and automatically people will have a choice of medium of exchange to support their lives and when doing something like this I think it will make the bank lose trust public.
besides that banks will also lose control over the currency used by their people because indeed when they are already using bitcoin when they see the amount and the transaction cannot be manipulated by anyone, they cannot control everything that is usually done at the bank.

They do.

https://markets.businessinsider.com/news/currencies/13-top-banks-investing-cryptocurrency-blockchain-technology-funding-blockdata-bitcoin-2021-8 (https://markets.businessinsider.com/news/currencies/13-top-banks-investing-cryptocurrency-blockchain-technology-funding-blockdata-bitcoin-2021-8)

A lot, over $1 billion invested by 13 banks.

These banks are names like Morgan Stanley.

If it has a pulse and a credit card, banks will invest in it.

Simply because cryptocurrencies makes the banks obsolete, and bitcoin is a decentralized currency that no one controls it while the banks are a centralized currency that keeps track of every transactions in a ledger and make profits from it. And why would a bank work with crypto when they cannot be the middle man for every transactions that have been made on crypto and bank can't profit in any ways.

I found a video on youtube that explains why do banks hate or don't work with cryptocurrencies.

https://youtu.be/1Y7oHdnHssY

Simple, They lose control.. as government cannot control it.. as everything is anonymous in the end

Governments control the Reserve currencies and they have the power to print money. The Reserve Banks transfer that Money to the Banks and they distribute it to people in the form of loans. Now satoshi has released a decentralized cryptocurrency that makes them uncontrollable and profitable, affecting a lot of their tax income, which makes them even more disapproved and will hate cryptocurrencies. More than just accepting it, I think crypto is the new generation and surely banks and governments should deal with it.

Yes.

It is one reason why they're not yet into it. They can't print cryptos because they're decentralized and it's against to their business of having no central power towards the crypto.

They do.

not all cryptocurrencies have unstable prices because there are some cryptocurrencies that have stable prices, for example, such as BUSD and USDT. I think that fluctuating prices are not the main reason why many banks don't accept cryptocurrencies, perhaps another reason why banks don't accept cryptocurrencies is due to legal issues that are still unclear.

Are you right whether programmers will be able to create a simple open smart contract capable of cloning, and the emission of all clones was taken into account in the total volume. The fundamental difference from existing systems is that only the owner manages his financial asset and no one can reset it, as is now happening with DeFi. This system does not require the Oracles, the validators this role will be performed by the banks themselves and those financial structures that have accepted the terms of the project.

http://prosh.info/smart_eng.html

The government wouldn't want bank to work with Bitcoin because of selfish interest which they can't regulate the system of Bitcoin. Instead they will look for all mean to fustrait Bitcoin.

Crypto is considered as a threat to banks' existence, simply because no one can control it due to its decentralized and censorship-resistant nature. Why would banks work with crypto if they can't manipulate it at their own will? For this and many other reasons, banks will stay away from crypto as much as possible.

I wouldn't worry about banks' support towards crypto since it was never been about replacing the current monetary system. Fiat will eventually evolve into a CBDC, making banks even more powerful than usual. What's important is that crypto stays decentralized so that it could stand the test of time. As long as it stays that way, it'll live alongside Fiat for generations. Just my thoughts ;D

Why did you decide that cryptocurrency threatens the existence of the banking system?
Decentralized finance threatens not the banks, but the authorities who exercise control over everyone. Banks will work with crypto currency if it is profitable and safe for them, while this is not the case.
CBDC is not a cryptocurrency, it is just a digital Fiat that the authorities can print as much as they want and will also control everyone through it.