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DeFi or decentralized finance can threaten the world of traditional banking, because of the shift in lending, even DeFi itself is known to be able to provide loans like other traditional banks.
This can affect existing traditional banks, because there will be competition between traditional banks and crypto in general, regardless of the various problems that will occur, crypto and traditional banks must be able to adapt to each other.

Crypto development is progressing so rapidly, this can be seen from the many users who join here, if Traditional Banks close themselves it is not impossible to be abandoned in the next few years.
Although currently crypto is still very risky, it is not impossible that in the future crypto can change finances, just need to wait for regulations or legal regulations, if this happens, it is certain that crypto will grow and be accepted by many people.

Cryptocurrency is not here to threat the traditional banking system. Defi is a different kind of lending which requires a collateral in the form of crypto. Can you take a home loan from a defi platform? Can you take a car loan from a defi platform? The answer is no!

Defi is here to exclusively cater the crypto community. It can't fulfill the need of traditional consumers and hence I don't see a threat to the banking system anywhere. Also it is not practical for anyone to move to complete crypto without the need of banking. Some exceptions can happen but largely it's not really a convenient mode of payment. So there's no competition itself.

The traditional banking system sees crypto as a threat even though crypto is not here to threaten them. Each of them have their own method of operations and exclusively independent of each other. They all share something similar, they’re both known  for financial services. No matter how exclusively they operate, one must definitely pose threat at a particular point in time. Cooperating with each other is not something that might be possible now or can ever be possible because of how volatile the crypto market is and also the traditional banking system been decentralized.

They're not OP instead, they will fight against the growth of crypto as they think this was a threat to them. Because the moment that crypto becomes legal, many will no longer use the banking system anymore. Of course, this never makes them die or the collapse of the banking system, however, this will cause a downtrend of their possible income.

Digitalization is a new trend now if we see, Banks have also upgraded their system to cope with the demand of digitalization. This is a way to a healthy compilation against cryptocurrencies.

Banks will stay, they might cooperate later on especially now that many are into blockchain which helps them in many ways. They might fight with those fake projects but can’t afford to mess with Bitcoin because this market can’t be controlled by those institutions so they have no choice but to adopt as well. Banks will always be a bank, what’s good for them they will take it.

It is unknown what competition between banks and cryptocurrencies will be after the widespread introduction of CBDC. It is unlikely that we will see the closure of banks in the next few years. Most likely, centralized finance and decentralized finance will develop and exist in parallel. Even if there is a direct threat to the banking system, governments are more likely to start restrictions for cryptocurrency than to destroy banking institutions. This is not beneficial to big capitals, and of course, no one will give full power to decentralized finance, where there is no state control. Therefore, replacing banks with DeFi is more of a fantasy.

The first thing that I can think of banks supporting crypto is not flagging down transactions from the exchanges. If you directly withdraw from an exchange to a bank, that won't count for them as you're just doing a casual cashout and withdrawal from them.
Because there are banks these days that will flag that transaction if it happens related to cryptocurrencies whether it's from someone or will label the transactions in cryptocurrencies. Banks won't be obsolete, just see how the exchanges have been pausing withdrawals because of the continuous drop in prices of bitcoin.

Well, as long as the government never cooperate and always see crypto as a competitor to fiat, traditional banks will never allow to accept crypto or integrate crypto into their transactions. However, if crypto will be legally adopted and accepted in the future, traditional banks will never stop their operation but they will continue to serve their customers and assist them in which type of payment they are convenient to make, be it crypto or in fiat.

Both would co-exist with each other but there's no way that traditional banks would be adopting or integrating or cooperating with crypto even if they do tend to plan with such thing but we know that
crypto is decentralized in most projects that is existing.There's no way that they could really be having that full control which simply implies that it would really be totally opposing their overall
preference in terms of centralization thats why its not surprising that they do really always made out some counter move towards crypto if they do have the chance.
So dont expect that everything would goes well in between the two.

Cryptocurrency has grown. Just think between 2009 and now Crypto has taken over almost all the sectors of the world global system. Cryptocurrency and traditional system are two different financial system with different ides. Tradition  bank can develop chain to integrate the traditional institution to comprehend with blockchain idea since everyone is now in for digital currency.

These days banks already cooperated with crypto as per review made, just for example in binance p2p their mode of payment and has the option to link to each users bank account. But only for kyc verified users only, they're very careful on this matter of who's the one transacting with them due to potential scammers roaming online.

Why not? Basically traditional bank was seeing crypto as a competitor but it can co exist. This time if you know the fact if people were using their traditional bank as a way to transfer their money into the crypto market. That means if the traditional bank is possible to cooperate with the crypto. Remember the reserved funds that used to backed the stable token was also still on the traditional bank as well. I think that that crypto can't leave from the traditional bank as well.
That is still become one of best gateway for money to come in

looks like it won't happen even for a long time. because if for example a traditional bank accumulates just one of the cryptocurrencies for example a blockchain network for transactions, it will make it anonymous which will be difficult to track in case of theft or something else. Currently, traditional banks have also launched mobile banking which makes it easy for users to make online transactions and that is enough.

in terms of currency, crypto is also too risky because of its volatile price. logically, banks may not coorporate with crypto, but in reality we'll see if that can happen.

Indeed, there is no real threat to conventional banks with the developments that occur in crypto, but many developing countries are starting to be wary of this problem, they can't even take home or car loans from the defi platform, but the worry is not only here.

This is what they are worried about, not about the change of conventional banks to crypto, but more about financial effects that cannot be controlled by the state, so far there is no regulation that can regulate all of that, even in crypto there has never been such a thing as inflation, financial freedom can destroy a system and I think this is the big problem

Openness in accepting progress is very important to care for differences, for example crypto is starting to be juxtaposed with conventional banks, this can actually keep the bank running according to its function, but what needs to be added is regulation to take care of all of it properly

Dare to speculate and dare to take risks, at least this is a guide for developed countries, they don't start to limit crypto development, they also don't try to legalize it in the near future, in principle they want to open up to something that exists, especially nowadays technology can make things easier, both crypto and conventional banks are not involved in the problem, but must be able to run side by side together, because to avoid financial freedom, it is necessary to have a system that regulates and controls them on the way, I think both crypto and conventional banks, both will continue to be needed by many people going forward

Right now there's already a cooperation between many banks and crypto platforms. In my country, more and more banks and financial institutions are considering crypto platforms. Even our central bank will be working with some of these crypto platforms for improvements. The bank don't need to get threatened by crypto progress, whereas, they just need to understand how it works and then adopt when they deem it necessary and some sort of improvement to the system.

Decentralized finance is another thing. I still find it difficult to regulate unless there are changes and well, it may not anymore fully decentralized in nature. Our central banks and governments existed in order to regulate.   

Actually traditional banks can switch to the world of cryptocurrency and apply cryptocurrency technology, it's just that all of this has a very high risk and of course blockchain technology if applied to banks can be wider and everything becomes transparent so it is likely that banks will find it difficult to make profits and will likely there is a reduction in employees because everything is digital and automatic.

I will try to sort this out because a traditional bank is a place where everyone can save their money or assets with ease of monitoring it through an application that has been provided by the bank. This means that at this time Banks are still needed by everyone because Banks can only store the currency of their respective countries. And if someday Banks can cooperate with cryptocurrencies, I think it still needs some new things that must be changed by the Bank besides regulations from the state.

I don't deny the development of crypto at this time because there are many examples, but for now Banks are still needed to collaborate with crypto because you yourself may not be able to cash out the cryptocurrency you have if in your country you no longer have a bank at this time.

it's always possible. I just try to remind you that if central or traditional bank will always be needed by people no matter how hard they were blaming the central bank but the fact that if these kind of people are still using central bank for their daily activities. Central bank already cooperated with crypto but it's not all of central bank was doing it. It's always possible for the traditional bank to cooperate with the crypto company. i have seen so many times central banks were investing in the crypto

Those traditional banks will also consider a lot of things and I don't think it's an easy matter to switch and implement blockchain technology,
of course for us as users with the technology it will make it easier in banking matters,
but on the other hand like you said that there will definitely be a reduction in employees and that is bad news for them

I am not really that sure but I think some banks in where I live have an crypto ATM and they are crypto friendly I think if they can't stop it they can just add it in their service plus they can make money out of it by asking extra charges or some kind of fee. I am not really sure if what would be the effect of it but is some other country have added crypto service to their current service?

I don't see why not. Crypto is open source and decentralized, so anyone can do anything they want with it without restrictions (legally, of course). Banks can leverage crypto/Blockchain tech in order to increase efficiency and reduce costs as much as possible. Some banks already begun offering crypto services to their customers, allowing them to expand their business operations. In the end, everybody wins (banks, governments, individuals, etc) as crypto/Blockchain tech enables true financial freedom. With greater regulations, crypto will flourish like never before. The industry is growing at a fast pace, so it seems that crypto/Blockchain tech will be here to stay for a long, long time. Just my thoughts ;D

I actually think that someday traditional banks will cooperate with crypto, more precisely adopt crypto. fiat and crypto will go hand in hand in time. Because many banks in various countries are starting to talk about this crypto and are still considering whether to adopt it or not. For example, 44 countries gathered last month in El Salvador to discuss bitcoin and crypto.

So far it has not been possible to replace Banks with DeFi, even I personally am not sure it will happen in the near future, many rules are related to restrictions on crypto, if conventional banks start to be threatened by the presence of crypto in general, and certainly all countries will protect banks over DeFi

This is more rational, traditional and crypto banks must be able to run simultaneously, in fact this can keep the bank in accordance with its function, the development of the times cannot be covered by something with existing rules, so that new existing programs (DeFi) will grow by itself, but if the two can coexist and have clear rules and regulations, then there will never be one of them will be left out

It is only necessary to apply the right regulations, so that traditional bank functions can continue to function as they function, while crypto (DeFi) is still given a limit, so that they do not surpass traditional banks, but if this continues to be opposed, then what is feared is that they will be better than banks. and in the end it was the bank that was abandoned by many people, it is not impossible that this will happen, the development of the times can happen things that are beyond people's predictions

At first glance, its function is similar to funding, but defi is created to help developers develop projects, while bank loans are for funding the borrower. In my opinion, a cross-economy with interest. similar but not the same.
in terms of Roi and apr / apy which are very different. If defi is paired with bank interest.

You are right, from the legal umbrella, the bank has complete and insurance that guarantees if funds are lost, stolen or something like that.
banking is still steadfast and venturing with applications for submissions.
if there is a collaboration, it's only funding / disbursement while the exchange is still on the Dex.

This kind of surprise has not been thought of since 2014.
but it appears that there are many who follow it.
we follow in the future, banking could be in the direction you think.

Banks can easily join hands with the crypto world but they are not having their own decision making powers but they are controlled by the central authorities who will decide whether crypto is good or bad but most of them see it as their competitor but didn't realise that fiat can't be displaced by it's usage but they can go side by side.

There were rumors that recently there are some banks running on Anchor Protocol, this is a DeFi  platform that is under Terra Luna network before and I think it is because of high APY, around 18% before, so that's only rumor, even the Aave a liquidity protocol, there are also rumor before that there are some traditional banks that is using that DeFi plat

I see it the other way around, bankers hold the power of money and as such they can get into power anyone they want and pass whatever policies they want, so a great deal of the opposition we have seen against bitcoin comes from them, even if on the surface it may seem to come from politicians, so with this in mind they may be willing to allow bitcoin and other cryptocurrencies into the banking system, but only if they follow their rules, something which is unacceptable as they will ask for all kind of compromises for this to be the case.

I think it is very much possible that traditional banks are also adding crypto in whatever form to their portfolio of products. The thing is though if those banks really want to do that because in the end crypto was invented to create a financial system that gives the power back to the people and that can not be controlled or even stopped by banks or the governments. I also can imagine that traditional banks are afraid to become irrelevant if they are offering crypto services, because i would guess that a lot of new customers that would use those crypto services would find out sooner or later that they could do all that Defi stuff by themselves without paying an extra fee to the bank.

I don't have doubts that crypto will continue to progress every year but i don't see it that traditional banks are nearly closing because of crypto. That will never happen as long as the government chose to support traditional banks. However, i always have high hopes that banks will come to adopt and integrate crypto into their bank's transactions. Instead of being one sided, its always better for them both to adapt with each other because that will be the only way that they can continue giving maximum services to the people.

They always could cooperate in order to get their services to the next level but the question is, will they? due to the regulation and etc they usually can't just do that.
Cooperating with cryptocurrency is always great, more over it could increase the coverage of their customers but there is definitely so many things that they need to take into account before ever cooperating with services like decentralized finance.

What do you mean by the right regulation? You know that In fact, it is already functioning, so any further regulation is not necessary for a bank to keep continuing what they are doing. And Defi was given a limit is not because it will directly compete with a bank, instead, in some countries, they even still do not have any regulation at all.

This is really possible the world is changing and they need to accept and adopt this new technology and keep updated on it else they will become obsolete and will left behind, most banks are slowly showing interest on crypto as publish in some financial websites, who knows they are secretly engaging in DeFi unknown to public. 

I'm of the opinion that the traditional banks may not have any option than to cooperate with crypto in the near future. This is because there's been growing adoption and cryptocurrency is coming to limelight with the regulations and legalities that are coming in place. This may take a while to accomplish but we'll get there.

Yes this can be easily done. But guess what there is an obstruction in between. And that is the government.
Due to the decentralised nature of the Bitcoins, it cannot be controlled by the government, and therefore government is playing the major role to prevent Bitcoins to get accepted globally.
As Bitcoins are cannot be controlled by the government, therefore they are unable to impose tax on it. And also for that reason, they have instructed all the traditional banks to not pair with any cryptos.
And the traditional banks are majorly funded by government, so they are abide by all the rules that the government will give them.

That's right banks can't co-operate with crypto because they are not controlled by the government. Although cryptocurrency has advanced through decentralized blockchain technology, it will take some time for banks to regulate it if bitcoin is supported all over the world and all the institutions are controlled by bitcoin then many will accept it.

The banking system will not be left behind because as long as it is needed the community will continue to operate as usual, even though the cryptocurrency trend is currently developing, but that does not mean the presence of crypto aims to replace the banking system, so I don't think they need to compete because both have their own advantages and disadvantages. so they will continue to walk side by side.

But in recent years, besides the trends that we still think are common in this market, I have also heard a lot about CBDCs. But for or against cryptocurrency is still an unclear topic. The core blockchain technology is growing in popularity in many fields, and the governments of many countries are also looking for ways to intervene in the field. In this area, more I think the problem depends on many different factors and not just each crypto market. Speaking of support for it, perhaps we will soon see support or opposition to this field in the near future. But overall, I'm not one to have too many things to be influenced by that many people think it's a big deal.

That's what I mean, that crypto and conventional banks have actually cooperated indirectly, in fact we can transfer money via crypto to conventional banks or even vice versa, and another hope that we need is, these two systems can bind to one regulation, so that no one feels harmed

The cooperation carried out by traditional banks with crypto can also be interpreted broadly, for example sending money from crypto to banks or vice versa, but people worry that banks will be left behind, even though we who have been in crypto for a long time understand very well that we also need banks. to make a delivery or a withdrawal, people acquire something in a very general sense, and I think the two can go hand in hand going forward

This is a pretty good step taken by a bank in your country, this is a new breakthrough to guarantee technological sophistication as the vein of a development, although many problems will arise later, but the adoption of crypto is worth trying by the central bank, if the regulation is good enough and binding, I'm sure no one will be harmed

All forms of work experience risks, the problem is that we are required to be able to accept the development of the times or existing technology, people no longer need to work in offices, they can easily access anything at home, won't developed countries continue to launch technology, then what about developing countries , who always says that he is not ready to accept, regarding employee restrictions, that is indeed the target of developed countries, they want humans to be more developed and have skills

Not in the context of wanting to blame each other, I mean are there future regulations that can regulate central banks and crypto to cooperate widely, isn't this very beneficial for all of us, and even everyone hopes that central banks and crypto can run together, full support given by the authorities can guarantee the continuity of both of them in the future

As we know there are some countries where crypto currencies are illegal that's because the governments of these countries understood only disadvantages of crypto they didn't try to find out the advantages and benefits of crypto that's the main problem which is creating a barrier between traditional bank and crypto industry if these countries legalize crypto currencies with regulations then traditional banks might cooperate crypto currencies.

cryptocurrency is not considered a currency, but only as a means of investment and trade, if in accordance with the essence that is allowed by the government it seems that crypto can work together in terms of deposits and withdrawals, the rest as a currency or a medium of exchange does not seem to be able to be done. Isn't it now that there are many facilities from banks in an exchange, to facilitate investors?

seeing from their working system like cryptocurrencies work decentralized while traditional banks work centrally it has become a very opposite difference. From there it seems like traditional banks are unlikely to fully cooperate with cryptocurrencies. But I think they might take some concepts or add a bit of the same technology as blockchain. Likewise, cryptocurrencies that aim to become digital currencies as global payments will also take some of the concepts of traditional banks. Here they bond with each other but may not cooperate.

That's true and indeed as the times progress, the development of technology itself is also increasingly sophisticated and I think it will always go hand in hand,
and like it or not they have to adopt new technology because it is important for the development of traditional bank,
We'll see if we will actually adopt it or not

As it stands, traditional banks are against cryptocurrency because they're competing intrinsically, coupled with the fact that cryptocurrency seems to have a lot of benefits which out ways that of traditional banks especially as it relates to the people. The government in many countries are bringing up regulations to circumvent the use of cryptocurrency and the support of cryptocurrency by banks. This may be the case now, but in the future they would have no choice than to allow the people have their way.

This is true but I would also add that banks and governments want to move people to digital fiat (CBDCs) so they can control people and tax them better. They don't want you to have the option of using a system other than theirs. So what we have here is a battle between decentralized (MATIC, CNDL) and centralized blockchains like Hyperledger as well as private forks of Stellar and XRP.

It's possible, but this will sure take some time. People are not yet ready to accept crypto. On the other hand, traditional banks does some dirty works for the rich people while poor suffer from that. So the filthy rich people won't let people accept crypto. So now it's just a matter of time till people will understand. The world nowadays has become so much hard that people don't wanna learn new things and just move forward with the boring old stuff.

Regulations will greatly limit banks' ability to provide crypto services at their fullest. Some banks have still managed to work with crypto, but most of them can't because of the reasons mentioned before. Keep in mind that if all banks cooperate with crypto, then that would signal Fiat's defeat. That's something governments don't want to happen, as that will reduce their dominance/control over people's financial lives.

I believe banks are better off "sticking" with Fiat, than crypto. The latter was meant to eliminate the middleman anyways, so I'd say it's best for banks to stay away from crypto for its own good. It's already been 13 years since Bitcoin's inception, so it's likely crypto will live alongside Fiat for generations. Just my thoughts ;D

If we are indeed getting close to a world economic crisis then people will have no other choice but learn how to adapt and look for new solutions to their problems, at the moment the adoption of bitcoin is slow because people do not see the need to do so as they still get enough benefits from the current system, but once that is not the case and they realize the system they believed in was nothing more than a scam that is when we could see them adopting bitcoin, and since banks follow the money that is the moment they will do so as well.

Its always good to see traditional banks to cooperate with crypto in the future. But for now, i don't see any possibilities that crypto will be accepted by the traditional banks as they even see it as a threat. And once bitcoin will be integrated in the banks transactions, that will no longer be decentralized. The thing that may totally lost the decentralization nature of bitcoin once the government decides to adopt it legally and accepted it in the banks as everything will be traceable by the government just like what fiat system is all about.

Technically, this is possible, of course, with evidence that there are actually banks that have been developed according to the new technology, and also old banks whose policies have been adapted to effective encryption systems in the blockchain system.
But in practice, this remains subject to the global policies of the financial system, and exclusively to the policy of the state to which the bank is subject if it is compatible with the blockchain system.

Is not possible for cryptocurrency to cooperate with bank because government will not allow something like that to happen because of the hatred they have for Bitcoin. The challenge of bitcoin or cryptocurrency today is government and before it have alignment or alliance with bank, because if it happens it will be like centralized currency

Somehow it must happen. You know some banks offer investment options in assets besides fixed income, and some of those investment categories might include cryptocurrency as part of the package. But that is all I expect from banks: an informal approach to cryptocurrency instead of a direct one, that would mean accepting crypto deposits and swap. Actually, I don't see this as a problem, because we don't need traditional banks to survive. As technology evolves and becomes more accessible to everyone, new services are being developed also regards finances and that is what I believe to be the future of banking system. Just like bitcoin, doesn't matter where you are in the world, you will have access to that virtual bank.

Not directly with crypto, but some banks already adopt blockchain technology and that is being host by a crypto, XRP for example so I think its really possible to happen, it’s just a matter of time. Banks will remain banks, the greed will still be there and probably some will block the crypto adoption on their place but in general they can’t stop this anymore and people already know the importance of cryptocurrency. I see a good future with cryptocurrency, for sure they can work with banks and have a good partnership in the future.

so far no, the banking system sees crypto as a threat problem many countries don't legalize crypto that's why banks won't cooperate with crypto.  Traditional banks can provide many types of loans, houses, cars, installments etc.  defi is a type of crypto-based loan and it will never threaten conventional banks.  I think this is a simple explanation

I do not think DeFi is a threat to traditional banking,  Defi can be banned if the banking institution forbids it to operate within their jurisdiction.


We don't need to wait for the future to see the effect of cryptocurrency to the bank system.  Actually, Cryptocurrency is already shaping the financial system.  Banks and financial institutions may deny it but their action speaks louder than their denial.  Just check how they wanted to implement CBDCs.  If it is not for crypto they would have not been pressured to that extent.

Banks still in doubt about where the crypto will proceed,

even there are some countries that open with adopting crypto the banking business still not in the process of fully adopting this system.

Like how you provide your example, there are deals that banking can offer, but unlike with how defi works,
banks are more likely to a secure side that they are always in control.

Banks are already working with cryptocurrencies like XRP and XLM. CBDCs have been rolling out over the last year. Other contenders for nation states would be UTNP and CNDL, both of these have 0/low fees and are capable of running smart cities.

Yes, I think it was possible for traditional banks to cooperate with cryptos if they're willing to abandon their monopoly and adjust their business to be more up to date. What is the reason behind the crypto movement? If you can list out all of that and tell the banks to lower their profit margin by cooperating with cryptos on those points. 

I recently created a thread concerning this topic:

https://bitcointalk.org/index.php?topic=5401221.msg60279675#msg60279675

Goldman Sachs Group lends money to Coinbase backed by bitcoins bringing money from the Wall Street to the digital-asset space

https://www.bloomberg.com/news/articles/2022-05-03/coinbase-is-on-other-side-of-goldman-s-first-bitcoin-backed-loan?sref=fgHqaWRV

In sum, yes, I do believe that traditional banks/lenders will cooperate with crypto

The bank definitely gonna create their own system since it's gonna be beneficial for them.
You could see many bank has already researched the technology of blockchain and if they could integrate it in their system, maybe in the future we gonna see hybrid system of bank combined with blockchain to increase efficiency.
I think that's the thing that most of the banks gonna takes the direction in, since maybe creating or combining blockchain into their system gonna be really easy.

everything has possibility to integrate banking system with cryptocurrency.with huge capitalization and also huge community it will bring alot benefit for bank. The first thing that could adopted maybe blockchain techology which give alot efficiency in operational cost. Its not talk about rich or poor people, but about profit potency that will taken.

But as long as whatever they develop on those blockchains is centralized then it does not matter what they make as it will run opposite to what bitcoin is trying to achieve, now taking into account how little interest the average person has on those topics I think they will succeed on the short term, but since whatever they create is going to have the same weakness as what we already have right now then once we see an important number of issues on the economy that is when people will realize that bitcoin is way better than what they offer and the rate of adoption will skyrocket at that point.

Traditional banks are always against with the cryptocurrencies financial system but if in the future the government will consider cryptos as a reserved currency, then we can expect for traditional banks to cooperate with crypto. In the end, centralized banks are only following the laws mandated by the government. If they will oppose, they will be subject for closure in the future.

Considering that countries are making their own crypto coins, I would assume banks would do it as well. Though I would still stay with Bitcoin, as I have been comfortable with holding that for almost 5 years and still going to buy more.
I am sure that these banks will make us undergo KYC because why not right? I am not fan of that though.

There are so much benefits if the traditional banks decided to go in fully into crypto especially in countries that does not ban crypto activities. Crypto is a god market to invest and also have it own risk that must be taken before any pérsons think of going into the crypto market. If the government eventually connect with crypto especially the Bitcoin, them bank will have more up hands to benefit much.

I also think that governments and banks at some point will accept bitcoin as they will not have any other option, however that is when the real game will begin, governments will start to use bitcoin as a reserve currency and it would not surprise me if they began using it to back their currencies as well, but that means that whatever bitcoin they get will never go back in circulation ever again and then they will try to impose their fiat once again, only then we will know how resistant this market really is as we will have to face such a huge pressure coming from them.

With no payment given to crypto for our basic needs, traditional banks will still exist because after all in the business world there will be competition in any field even though the financial system in Defi resembles a traditional bank, in fact we still need Fiat to make transactions. without a Bank how do we get the Fiat to exchange from Crypto? it would be better if the two side by side and walk together.

Well I don't know if you are aware that the banks in Spain are looking for a way to enter with crypto purchases, and JP Morgan had to put BTC in their banks at the request of their BTC clients even though he did not recommend it, of course, For me, JP Morgan is a very bipolar person with respect to BTC, or I don't know, maybe at the time he did FUD to BTC he would do it to manipulate and then he spoke well or to finally go against BTC, so these are things that they do to control, all banks should accept BTC and crypto in the near future.

Many people think that cryptocurrencies were created to replace and eliminate traditional banks. This is a common mistake and it is these thoughts that are spread that make the banking system see crypto as a threat to them.

Crypto is the new financial industry and it was created for people with a need for privacy, financial freedom and it's all about personal choice. Its mission is not to kill the traditional banking system.

We should stop spreading this, in my opinion, it would be better if both existed alongside each other.

Well it's true that traditional banks can work hand in hand with crypto, however mandatory KYC request from the traditional banks will discourage a lot of crypto hodlers and investors to use the banks, a lot of investors preferred using cryptos unanimously because it's is decentralized, while many government in many countries kicked against adoption of crypto by individuals this is another bottleneck and setback that Will make banks not to work with crypto, while in countries that allows crypto a lot to investors will be skeptical about the workability between the two thus will ignore banks.

One of the obstacles why until now traditional banks do not cooperate with crypto, that's because most people really misunderstand
the purpose of crypto being created. Even the government does consider crypto as a threat, therefore the government in my country
only allows using cryptocurrencies for investment and trading. Many countries do not allow crypto to be used as a means of payment,
because the government is afraid that fiat will be replaced by crypto.

Even though crypto was created to make it easier for humans to carry out financial transactions, crypto was created as an alternative
payment. So crypto is indeed not to replace fiat, but to complement the shortcomings of fiat, it would be nice if crypto and fiat co-exist.
I am sure that in the future many countries will realize that crypto is indeed important for human life and will provide support for crypto.
If in the future many countries have legalized crypto, of course traditional banks will be given permission by the government to cooperate
with crypto.

It's always possible. This time crypto and traditional bank was also cooperating. I meant if people didn't use the bank to help them all to cash in their money and so what shall used by them for that? Honestly if crypto still needs the bank at this moment. that's the main gateway for the money to come in or out from the crypto ecosystem. It can't denied if crypto can exist without the bank and so what will be used by people to withdraw their money to fulfill their daily needs?

Until these banking institutions see that people are still in the use of fiat money, that absolutely makes them not cooperate with crypto, it wasn't the time yet, maybe soon when the majority are adapting crypto already. But I'm still uncertain if that be going to happen as these crypto holder/investors don't need banks anymore as they can use online/offline wallet to store their cryptos. I'd see them as no use anymore unless they will offer responsibility and consider them as a storage platforms like they did with fiat money.

financial management can be distinguished. Banks can adopt crypto to manage the legal currency in their country. it's like making crypto out of their currency. so there will be different functions. but perhaps this should cooperate with the exchange in its management.
but I agree more with the adoption of blockchain technology in banking and government. I'm sure there will be more benefits that we can see.

It is possible for traditional banks co op with cryptos as long as both sides respect and don't encircle each other turf. Banks stay with the fiat and stablecoins and cryptos stay with volatility alts that people want to get rich quick, abit with high risk. This makes both of them have their own use and can create a natural ground with regulations to keep both sides happy.

Hate it or not, I firmly believe that governments will gradually accept crypto as it is the future of finance. They can't ignore it forever if they don't want to become obsolete compared to the rest of the world but there will certainly be strict regulations attached to the approval of cryptocurrencies. Banking and cryptocurrencies grow side by side, no one threatens the other and no one replaces the other. certainly so.

Yeah, why not? crypto no longer that image of just used by criminals. More and more people have bee with in the last 5 years so it has grown tremendously.

And with that banks and government can take advantage of it. Maybe they can even make money through it, they have the business model already, they just have to incorporated cryptocurrency and they are good to go.

Couldn't agree more with you, mate. People are totally wrong when they think crypto can replace banks. The latter won't go away anytime soon since governments patronize them every step of the way. Banks will simply adapt themselves to the latest technological trends. It's most likely they will create blockchains of their own instead of embracing existing cryptocurrencies that are decentralized by design. Some banks offer crypto custody services to its customers, but the vast majority of these financial institutions are stuck with Fiat.

I don't think crypto will disappear simply because of its decentralized and censorship-resistant design. It will simply co-exist with Fiat for generations. With CBDCs at the brink of launch, banks will only become more powerful than ever. We should focus on making crypto a better alternative to existing banks by embracing decentralization altogether. Who knows how the world's economy will look like with both types of currencies (crypto & Fiat) in play? Just my thoughts ;D

I completely agree with you. Fiat and banking are still essential to us today and they cannot be replaced or destroyed. We invest in crypto for the sake of profit, but at the end of the day, we still need to convert these cryptos into fiat for our everyday needs.

I like bitcoin as well as cryptocurrencies but life cannot be without a bank, how would you use crypto without fiat support. So a perfect world where cryptocurrencies and banks come together and support each other.

Now that more people are investing and even more businesses are adopting Bitcoin, I don't think the government and banks won't support crypto in the future. I'm sure that there's a big possibility that they will allow and permit it or even cooperate with it especially when they see the number of people that believe in it. Since they can't control the number of crypto investors, they won't have any choice in the future but to support it.

Not just more people investing in bitcoin, but a growing user base. The more users there are, the stronger the cryptocommunity. The time when governments and banks could ignore bitcoin is long gone. Now they can no longer pretend that bitcoin doesn't exist and in the future there will come a moment when governments and banks will have to reckon with bitcoin. I don't know in what form this will be implemented and legalized, but I assume that no one will will not refuse. I am sure that those countries that later begin to recognize bitcoin will begin to lag behind others. In the case of banks, they have no other choice but to adapt to the new reality and start supporting bitcoin, otherwise they will simply become useless.