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Big Bankers Say Cryptocurrencies Do Not Pose a Threat to Global Financial Stability

The Financial Stability Board, a global inter-governmental body with over 20 member countries, has ruled that virtual currencies are not a threat to the world economy. The assessment could have an impact on India, whose central bank is part of the board.


FSB Says Cryptocurrencies Won’t Affect Global Financial Stability
While the crypto winter shows signs of dissipating, 2019 may bring good news for the cryptocurrency ecosystem in India. Highly unfavorable regulations imposed by the Reserve Bank of India, the country’s central bank, have forced many companies in the industry to leave or close down.

However, last week’s report from RBI gives new hope to the country’s crypto space, as all signs point to easing its stance on digital assets.

According to Quartz, the Financial Stability Board (FSB) has said that virtual currencies are not a threat to the world economy. The board, established in 2009 in the aftermath of the 2008 global financial crisis, includes finance ministers and central bankers from all of the G20 nations.

The board’s assessment came to light after RBI quoted the agency in a report released last week, Quartz reported. The FSB’s initial assessment indicated that crypto-assets currently do not pose a risk to global financial stability.


India’s Central Bank Could Be Easing Its Stance on Cryptocurrencies
Even though these assessments are not legally binding for any of the FSB’s member countries, they are usually adhered to in order to maintain global standards, said Quartz. With that in mind, the report was well received by the crypto community in India, who see it as a ray of hope for the following year.

India’s central bank has effectively banned cryptocurrencies, forbidding all banks operating in the country from providing services with companies in the industry.

Businesses and traders have been vocal about the need for more regulation in the industry, saying that the lack of transparency when it comes to the legality of the assets opens doors for government abuse.

On December 28, 2018, Pon Radhakrishnan, the minister of state for finance, told the lower house of the parliament that the country still hadn’t set a deadline for any norms regarding the industry.

However, Nischal Shetty, CEO of WazirX, an Indian cryptocurrency exchange, told Quartz that a lack of regulation isn’t always bad news.

    “It probably means that the government of India does not see cryptocurrencies as a matter of immediate concern, or something that needs to be regulated right away. This at least means that fears of a ban are not imminent,” he explained.

Cryptocurrency enthusiasts may want digital currencies to one day replace fiat. Yet, it seems that the G20 is not too concerned. Perhaps this will give crypto more time to flourish under the existing economic framework.


Reference: https://cryptoslate.com/big-bankers-cryptocurrency-not-threat-global-financial-stability/

They can say whatever they want to say. They may see it as a shrimp for now but they'll act differently when they see its market cap starts to hit $1T or so.

Is this thread should be on Press (https://bitcointalk.org/index.php?board=77.0)?

Apple had $1T marketcap recently, then it crashed by 40% and guess what, the world didn't end, and even American economy didn't suffer from it. And crypto has low liquidity compared to stocks, so marketcap is even more meaningless in this case.

Crypto will not be able to threaten global economy and banks, because it doesn't have enough users. Bitcoin exists for 10 years and since the beginning people though that mass adoption is coming soon and the revolution will begin, but there's no signs of it coming. It's time to open your eyes and realize that crypto is a niche product that is not suitable for everyone and that majority of the population doesn't care about freedom or privacy.

Bankers started to get more relaxed towards Bitcoin? Very good.

Bitcoin can be a threat to some of the banking operations, but this will only make the smarter banks evolve better. Bitcoin is clearly no threat to the banks, at least not yet and for quite some more time. This is not because banks are good and Bitcoin is bad, it's because of people's and businesses' inertia and because the legislation favors the banks.

And even if the things get to the point Bitcoin will become a real threat to the banking system, the overall financial stability should not get affected.


So I find the title correct and I'm glad to see they also have found this out. It would be beneficial for Bitcoin to get better connected to financial world and to businesses and for this (unfortunately) we need the banks accept us.

Cryptocurrency is not a threat to an economy nor can be helpful. It is on how people use it because its still a technology. Technology does improve efficiency but it still on the people on how they will use it to improve their lives or to make it beneficial though government plays a big role on these technologies. They can prohibit or accept technology depending on the weight of benefits to disadvantages. Besides, cryptocurrency is now a  well known method of transferring funds, why would a government insist to prohibit it just because of some disadvantages may incur. They should do research carefully.

I don't really understand why some people say that cryptocurrency and blockchain are bringing threat to banking system. We know that cryptocurrency can revolutionize significant financial transactions, but will not fully replace every thing. Thus, banking system and its fiat money reserved will still be used in some transactions. Let blockchain revolutionizes other fields aside from financial field.

They know the truth deep down yet,  they are pretending it isn't there. The truth remains that cryptocurrency particularly Bitcoin, once threaten the gobal financial when the price was skyrocking. They shouldn't just think that because the price dipped so it's over, Bitcoin is just getting started and we know that these 'Big Bankers' are number one secret investors.

India probably realized that when those companies leave they stop paying taxes as well, you can't pay taxes when you are not open for business. India wanted to regulate it heavily and saw the companies leave and decided to step back on their approach. This will be the stance for many "middle ground" countries in the future as well.

There are countries like Switzerland and Malta and Ukraine that is quite pro-crypto that will get many crypto business starting there and paying taxes there.

There are a lot of countries who still doesn't have a specific crypto law established yet and look at it like an exchange for foreign currency instead (license to buy and sell dollars-euros and so forth applies to being capable of buying/selling crypto in many countries even to this day) and there will be countries like India that will have crypto laws but bend it somehow until finding the right spot.

Hey from what I read India is trying to get laws to regulate cryptos, after terming it illegal now their top Bank says it's not a threat. It's pertinent to note that India has record breaking transactions, and if those were to be taxed it could open a new source of income for the government. Also many states in USA are accepting tax payments in cryptos, and many other countries will follow suit too in accepting cryptos as tax payments.

India is in a cryptocurrency roller coaster right now where I see ups and downs bust mostly negative things against cryptocurrencies. I don't know if this is really a change of heart but recently I am seeing news that their is a new committee that is ruling in favor of cryptocurrencies and they are pushing the government to draft a legal framework for it. The only thing I am seeing as a hindrance is their own central bank which is the RBI as any committee being push around by the RBI is a useless committee and we should expect no progress in their country.

But for me it will, but I guess big companies on Banks could really find a way to adapt cryptocurrencies also and be one of the companies that would also handle them.

Crypto is not a threat to the global financial market but adding a positive influence to the global world, it has been confirm at several forum the level of employment and value addition CRYPTO has added to the global world, thou it seems as a threat to the banking sector, with synchronisation but sector will be of benefit to each other and the global world at large.

Of course, if the cryptocurrency will go to the states simultaneously with the national money of these states, it cannot have a noticeable effect on global financial stability. I think that no state will abandon its national money in favor of decentralized cryptocurrency. In addition, cryptocurrency does not yet have significant amounts of investments compared to other types of means of payment.

https://www.reddit.com/r/Bitcoin/comments/9u2men/a_criticism_of_bitcoin_as_a_kind_of_money_and_a/ (https://www.reddit.com/r/Bitcoin/comments/9u2men/a_criticism_of_bitcoin_as_a_kind_of_money_and_a/)

This not only an Indian deal too. G20 gathered couple months back and they decided that not only cryptocurrency is a problem for the countries, but it should also be encouraged and taxed properly. Which means the countries in G20 that do not have any cryptocurrency laws (specifically crypto related) will soon have them and probably already working on them.

Governments do not take these steps quickly, they don't wake up one morning and say lets make a new law, it takes a while so they are still probably working on it. But as we can see from that G20 leaders gathering that crypto will be relevant in law for a long time and they are working on it.

India is just another one that is stepping in the right direction but there will be a lot more in the upcoming months soon.

They are just defending themselves in the precuationary manner,why they need to consider about crypto currencies if its not a threat to the banks (financial system).

Tell that to those supporting the scam coin BSV. I almost feel bad for those who legit believe that governments and the corporate world in its entirety will be using their blockchain to operate on.

To accomplish that they are looking to up their block space to over 1TB, which they are extremely serious about. I have never seen this level of ignorance and believe in something that has no chance to survive.

I thought that I have seen everything in the crypto space, but this is some next level shit. I wonder how long they will believe in this nonsense, because it will end bad for those who don't exit on time.

I honestly don't see it be a threat to the financial system either. Bitcoin will only become a threat if it challenges the US dollar, and this isn't something I see happening, or at least, not any time soon.

In the end, the main point governments and banks focus on is to have the ecosystem around Bitcoin become a regulated environment rather than something they either ban or selectively attack. Bans and attacks result in economical activities to shift to other countries, or even go underground, which is the last thing you as government want to see happen. You can better have that control than to let it go, and governments start to realize that.

Crypto is power to everyone that wants and needs it, regardless of what their government thinks is good or bad.

A lot of peoples' retirement funds cratered in value with the recent market losses. 2008 was much worse and that's what people worry about. If 20% gets shaved off the market (indices, not individual stocks) then that's bad for retirement income stability and planning. It can set people back by several years financially.

It's not the end of the world, but I think the basis for some of the fears about crypto threatening financial stability is a context where the crypto market might be orders of magnitude larger. If it's still experiencing 80% or 90% swings at that point, I'm willing to entertain the argument that it could play some role in destabilization (in the context of a broader financial crisis). On its own, I doubt it could ever destabilize the world economy though.

It doesn't.
I spoke with a top financial banker, a director of Royal Bank of Canda. See my post (https://bitcointalk.org/index.php?topic=5073456.0).
This banker invested in Bitcoins and Ethereum. While they can't offer advice to offer in cryptocurrencies, they definitely take market opportunities

I can't quite agree with the part that there's no sign of mass adoption coming

Obviously, whether Bitcoin is adopted and how much largely depends on your definition of adoption. If you mean it being used as a means of payment (such as going to a grocery store next block or to a Starbucks), then I would certainly agree with you. However, it doesn't look like it is where Bitcoin's mass adoption is coming from. Bitcoin is being expansively used as both a value transfer vehicle and store of value

Personally, I don't consider it a very good store of value if we take into account only this metric alone without considering other factors at play here. Everything is relative, and in some countries, the ones like Venezuela, with their runaway inflation, it is still better than nothing, given that the majority of population don't have access to such tools as gold or dollar (the use of the latter being strongly impeded by the government)

As in the title bitcoin as well cryptocurrencies never threat the financial stability, because compared to the traditional flow of fiat the cryptocurrency usage is much low in volume. Only thing that makes banking network fear is, wallets serving as our own banks and we doesn't need to depend on anyone to make use of our money. Looking this lot of users prefer cryptocurrency usage and the same has caused loss to several banks but the same hasn't affected the global financial stability.

As long as the government is still the holder of power and fiat is regulated as the main currency. then there is nothing to worry about cryptocurrency itself. users will continue to use fiat. and crypto will only be an option. it will not disturb global financial stability.

Bitcoin is not a threat to the bigger banks what about the smaller banks? we are aware that bitcoin can serve as a store of value a very important feature of course rather than banking their money as fiat a lot of people or investors will prefers keeping or hodling their coin in their respective secured wallets thus jeopardizing the efforts of smallers banks attracting depositors funds.

If the crypto is not a threat then there will be no banning from the government, the feature of crypto ia very suitable for global and anonymous transaction and its faster that bank transaction, and if crypto being used by all people and no one used fiat then it could disrupt the country's cash flow, and can caused inflation, if a country really implemented the full crypto payment and the regulation about crypto is not clear then it could be dangerous

besides that it will certainly affect economic stability in a country, because with the existence of each bitcoiner's private bank, they will not need a bank. on the one hand the central bank is supporting the economy of a country, moreover there are many employees involved in it, so it is not wrong if as a threat, of course there must be a wise solution

That's not necessarily so

It may not be a threat now, it may not even be a threat in the future, but it won't matter if they think and choose to act otherwise. For example, pot is not a danger to governments either but is it universally allowed? Obviously, not. If anything, it looks more like universally banned. You may not agree with the reasons why it is banned, but the same or similar reasons may be applied to cryptocurrencies as well

They may consider it too volatile or too scammy - and they would be right to a degree, let's admit it. So they will use this pretext and then ban crypto on the account that it is dangerous to common people and their money (read, they are going to receive less taxes), not the governments themselves

I agree. while there are some points to consider. Cryptocurrency, if used based on how it should be utilized, can be of great help especially in the world of financing and also services. It is just that the very nature of cryptocurrency is now being ransacked by some selfish individuals who likes to get hold of the money quick and in the maximal amount they can lay their hands on. this produces instability and high levels of volatility.

When pakistan starts to embrace crypto and their economy begins to compete with that of india they will change asap and fire the idiots who decided to block it in the first place. India has a big population, they should allow them to invest however they wish and provide jobs to the local people

it seems like this won't happen. because I think Bitcoin and Banks in this world can walk together without reproaching each other, and everyone is free to choose to use bank or Bitcoin money, but for a long time it seems that bitcoin will excel compared to banks, because it can send overseas quickly and with a very low discount. but in my opinion banks and bitcoin have their own advantages and disadvantages.

Yeah, they won't be treated as threat by banks because for all we know they are already planning to have their own digital currency as well. There are pros and cons on both sides and it is up to the user which one is appropriate to use according to his needs.

This is true in which not all banks are against Crypto currencies. Here in my country alone, our local exchanges are in partnership with our major banks in which we can use their withdrawal facilities every time we converted our Bitcoin to fiat. Our Central bank is also releasing guide lines on how to avoid scam ICOs therefore this shows that crypto currency really not a threat but partner towards prosperity.

Bankers must be thinking crypto is not threat the global financial stability. Its because market cap cryptocurrency below not more than 1% wall street market cap. As long central banks exist, i think bankers will survive because government depend on banks to grow their economic

That's good, in our country we haven't given access in such a way. Banks were asked to freeze the account of customers if it is used particularly for bitcoin and related needs. The cryptocurrency usage all around the world is very small in percentage when compared to the fiat usage. In this way however if the cryptocurrency market affect the economy it won't make a big impact, maybe it gets shattered a little.

What is the name of bank that freezing crypto account ?  Every country had several bank brands not just one  .  not all banks were against cryptos  .  there are fewer banks that fully suppoet cryptos .

Like for example here on our place ,  some brand of banks are now allowing crypto withdrawals and i heard recently that they will be planning to put up a btc powerd atm  aside from the traditional atm  . that is to give way for their regular crypto costumers .

indeed it depends on the territory of each country. In my country, there is not even a bank that has received crypto, because the government has not allowed it. but for the blockchain, it has begun to be accepted. so I think that depends on the policies of each country

I guess you should first ask what these cryptoaccounts really are?

As far as I know, nowhere in the world real banks allow their customers to open cryptoaccounts. Most likely, by these people mean regular accounts where money from operations with crypto is received. And in that case banks can freeze accounts as these sources of income may be considered illegal in a certain jurisdiction

But it is definitely not about some banks allowing these things while others prohibiting as the rules are the same for all banks in the same jurisdiction. Of course, you can successfully disguise your income as something innocent. In that case you won't be caught and your account frozen. But that would be the bank's fault

in fact it can be affected briefly, since the standard methods of world banks will not change in a short time, only people with knowledge and confidence in the blockchain will do it!

It aint a threat but more of a helper.
Why would they even think like that in the first place?
Are they really being threatened by it? Is something changing in the financial stability or are there big losses by now?
If it does then it might be another reason.
Or if it is the crypto world which is the reason then maybe they should change their approach to investing or banking.
They may want to upgrade something.

They can work together but banks refusing to do so. I know they will adopt blockchain technology later, but yes bitcoin is still better for many reasons. People have to choose well, be wise since we know that banks are taking advance with our money for so many years and they will continue to do it if we continue to believe on their poor system.

how do they expect us to believe them now, they made us believe Bitcoin was not real some years back and bitcoin turned out to be authentic ;D

When big bankers are saying that crypto currencies are not threat to the global financial stability, they are not wrong because even without going into the detailed analysis and data they have access to before making such statements, taking a look at the total capitalization value of crypto currency alone shows that its not a force to reckon with as that could be swallowed by the revenue of just one multi national and could be the monthly transaction value of one big bank in the country. However, there is need to put a disclaimer there because it is not expected that the status quo would remain like that till forever because times are changing and the future is almost upon us.

For the time being, no. There are still very few bitcoin users to affect the banking industry and the money that comes into bitcoins are usually exchanged for fiat anyway.

Also so far as BTC is concerned no "free" money is being created that would end up circulating out into fiat economy.

I think that at the time of the approval of ETF, BAKKT, they have taken another way to see bitcoin technology and its whole market in general, they have realized that it is an economy that can not control it, it is not inflationary but deflationary, this is an alternative for the traditional economy, I think that somehow they can protect themselves with some Bitcoin investments and that is why the attack is not like before.

It is necessary to agree with this. Cryptocurrency has only just begun to develop, while it is owned by several percent of the world's population. Compared to other financial assets, its volumes are also small. However, in the conclusion that the cryptocurrency does not yet pose a serious danger to other funds, it also has a positive side. This means that states and international financial organizations will not take any hostile measures against cryptocurrency.

I also think that crypto coins not affect global economy and also hope a little because people buy and VAT go to economy, there are other problems who affect global economy.

OP,I guess you are too easily manipulated by the bankers,if you really believed that bitcoin isn't real.
By the way,what you mean by "authentic"?
What makes a currency(crypto or fiat) authentic or not?

Not yet but where trust shifts from banks and governments towards crypto it will be for sure. It is already impressive to see where crypto stands today.

Considering the world economy what we experience with bitcoin is just a mere percentage of its true form of growth. Global economy of a country won't get any form of dependence on the tools that are required to analyze the network in a much shorter time frame.

I think they are right, virtual currency or digital currency should not be a threat to financial stability and should act as an option for economic growth.

as long as the government can manage it well, I think crypto and banks will be a solid partner for future economic growth. I think crypto will not threaten the bank if it is properly regulated by the government.

Crypto and banks in my opinion will not be a solid partner, I mean it's just hardly except the crypto is their own making, but if the crypto is 3rd party, we are talking about the impossible things, however blockchain is different matter, many of corporations consider blockchain for efficiency and many things, I guess blokchain system will be the one that come to acceptance first.

Big bankers may not be seeing the threats posed by cryptocurrency now or maybe they are just good in hiding what they really think inside. I am seeing the possibility that banks or group pf banks would be issuing their own cryptocurrency and I think there is already something like this right now. Cryptocurrency and the banks are strange to each other all because there are properties of banking that the former are also offering and here the control is not anymore with the banks. However, since there is a big potential for cryptocurrency to create profits and wealth, it is quite possible that banks van be involved in the trading of digital assets.

Cryptocurrencies is not yet widely used globally so thereis still no effects in the global economy and the users of virtual currencies are still in minority compared to the fiats. The effects will be felt if governments decided tolegalized cryptocurrencies and allows it to be use in every transaction. The high volatility of the cryptocurrencies will become the main issue of the virtual couns in the future. But it remain to be seen if the cryptocurrencies will become a threat to the global financial stability because it is still limited in use.

That's not very likely

Banks are completely tied up by regulations of the financial authorities and they can't issue their own currencies which are to be universally accepted (think cryptocurrencies here) as that would be a direct violation of the corresponding regulations. In other words, until the government allows them to do that (which is not going to happen in the foreseeable future), you can safely forget about this option


There is nothing strange in that combination. Banks had existed long before paper money not backed up by anything came about

Basically, it’s the main reason why the attack on cryptocurrency has died down for a while now if you take note, unlike before when it initially first came out, it even got worst in my country that they raise the issue in the assembly and started campaigning against cryptocurrency, but now, we have lots of financial analyst that are discussing about cryptocurrency on media virtually every day.

It is a good thing they are beginning to see that it really doesn’t not threaten the existence of these financial institutions, and what I expect now is for them to start deliberating how to adopt it and also regulate it.

I find that Banks doe snot have a lot credibility when talking about financial stability.
Banks are those who are to blame for the last stock market  crash due their recklessness in real estate bond market, they are not a good factor.

I would say that one should look for monetary policy stands on national and federal banks.

they were definitely wrong. Venezuelans are feeling proud to buy BTC at low prices and their money is increasing. and then, 2020 BTC again halving again and the value continues to increase. So why does it not affect the stability of global finance? The market capitalization of crypto market is now more than $ 250 billion and the future will rise very high.

Venezuelans have no choice, their banks and economy are falling that's why they have to go to Bitcoin to help them survived, you can also say the same case with Zimbabwe's collapse. The so called threat to Global Financial Stability steam from the idea that it can devaluate any currencies, let's say USD. But that is not what we are seeing right now. Banking systems have been in existence for hundreds if not thousands of year, I'm pretty sure they know how to protect their interest and I doubt that crypto can just steam rolled on them and threaten their existence.

I'm not sure whether they actually have no choice

And I'm not even certain they are in fact so much interested in cryptocurrencies as we are inclined to think. To me, their currency of choice should be (and likely is) the American dollar. It is totally liquid as well as accepted everywhere, and it is definitely easier to transact with, I mean buy everyday things. This is what Venezuelans need in their circumstances. Bitcoin and company are more suitable for people who are already well off and can afford the inconvenience of cryptocurrencies

I have always thought the same, cause I don't really see how cryptocurrency is affecting banks, though I do think that it might affect how much they make from transactions as a lot of people might starting opting for Bitcoin for making transactions. But apart from that there is no other way I think that cryptocurrency is affecting banks. If it was affecting them they would have started against it all this while and that would have led to the government stopping cryptocurrency once and for all.

I think stability aside it doesn't threat the fact that we are still digitalizing our current monetary system, me and my wife realized we didn't had any cash today for example, literally zero cash available at our house today, she was going some place where she has to use a parking lot and it was 2 bucks per hour which is not that much and don't get me wrong we have plenty in credit cards and debit cards I can put my car there and keep it there for a whole month without a problem yet in cash we had zero.

She took my debit card to withdraw some so she can pay in cash (parking lot doesn't take card) and that tells you how much we are moving away from cash to digital without crypto anyway. So it is definitely possible that banks are already ready for the crypto revolution more than we think they are.

Banking is a major system of monetary exchange carrying out economic activities and this is been a centuries. And now, cryptocurrency made its way to the world. A major shift has happened in how people can do business and make transactions. Suddenly, the value is able to be exchanged outside of the traditional banks in the flash of a mobile phone. I think this will become a threat if one country will not allow the existence of cryptocurrency to be a part of their economy. You, people will tend to look for a way that will make them hassle free.

We are definitely moving from a physical form of money to one that is digital but that is where it ends the similarities between fiat and bitcoin, banks have a monopoly and like any monopoly they do not want to lose it, but now a competitor has appeared that does not depend on them and in fact makes them obsolete and they are not sure how to respond, one day bitcoin is a huge threat to the monetary system and the next they think of it as if it is not a big deal, but deep down they know that bitcoin is the greatest threat they have ever faced and they are not sure they will win this battle.

They do hate bitcoin and other crypto currencies. They feel threatened by their existence. Who said they aren't against it? Even VISA started to cut ties with companies that provided cards that can be recharged using crypto currencies. There are countries were the bank closes customers account if they find any transaction related to crypto currencies. I would say this is quite normal. We all know, bank will slowly be removed from existence if crypto currencies become mainstream.

I disagree with you where even crypto currency becomes mainstream i cant really see that it would remove banks anytime soon.
As long theres government they wont let that thing to happen.They can ban all they want but getting rid with crypto isnt possible.
They do exist on both separate purposes so we should simply accept into that reality.

First of all was there anyone that claimed that it is affecting the global financial stability? The main thing I have seen people complain most about is that Bitcoin can be used for money laundering and can also be used for other bad purposes and which will make the users unable to be traced since Bitcoin is anonymous (or pseudo anonymous as some would say… But still they won't be caught, with Bitcoin they can cover their traces pretty well. So it's still the same thing, it's anonymous.

That part B of your first sentence is exactly the issue with ban, you think banks are created to really save your money, is that how they so much love us? The reason why they are after you saving your money with them is because of the profit they are making from our savings.

The charges alone give them millions of dollars as profit in a month, and not to talk of the interest they get back when they use our money as loan to big firms. If you don’t keep your money with them, how would they make profit for them to survive, be able to pay their staff salary and maintain their strictures, this has been their major fear.

It's all about benefits they won't care if they are not being affected it's a usual business that needs to be catered by the banks, they care if you are bringing them profits, from those billions of people who use their service surely it will always be for the benefits of the company and nothing away from that point.

Since bitcoin is a direct competitor to their business then it makes perfect sense for them to try to block its rise especially if those using bitcoin are using their services, however as long as the reasons for the creation of bitcoin are there then bitcoin will continue to thrive, for example banks want to charge huge fees for moving your money while bitcoin only requires a few dollars, banks want a monopoly while bitcoin is willing to compete against them and against thousands of other coins, so as long as they do not change they cannot kill bitcoin.

Killing bitcoin is really just pointless yet it isn't really possible no matter how these big bankers would do.
We know on how big is the community that do supports bitcoins existence.They might say that Crypto doesn't give any thread then
I do see that it is just a fake cover up but deep inside they do know the risk that can possibly affect to their traditional service.

They just afraid that people will leave fiat currency and i do think cashless society is the future and bank just like to prevent it to happening. I do think bank should follow the developments of technology and they can build a crypto custody instead rather than trying to destroying it.

Maybe that's the real reason why they are influencing the governments to ban the cryptocurrencies in many places at the same time they are shutting down the cryptocurrencies savings when being deposited in accounts or even , those Which are used to sell , thats why they are not in a support of buying and selling the cryptocurrencies using their services.

If that's so then why are they saying this ?
On the contrary they are giving out statements to the press telling the general public to stop engaging in it as it might be difficult for them in the future.

The South African Reserve Bank has stated that Cryptocurrency will become a material threat to the financial system if the market capitalization exceeds $1 trillion... SA Resbank Consultation Paper on Cryptocurrency (https://www.resbank.co.za/Lists/News%20and%20Publications/Attachments/9037/CAR%20WG%20Consultation%20paper%20on%20crypto%20assets_final.pdf)

Different financial analyst with their own view to cryptocurrency, while some people sees it as threat to banks, some do not see it as threat, it all depends on the system of government operating in each country and how transparent they are in their financial dealings and to their citizens.

If you see any government fighting cryptocurrency, it is majorly because of tax, if they were transparent to their citizens and are treating them right, even if they use cryptocurrency to transact their businesses, they will still declare their monthly transaction to the government for them to be tax. People are embracing crypto more because of how government is threatening them in a hard way as regards tax. So crypt should not really be threatening to them, because its economy value to their country should make them forget their personal interest.

They don't realize how flawed the market cap metric in crypto is. The ratio between the market cap of a coin and the actual amount of money within its ecosystem is incredibly poor-- worse than penny stocks in some cases.

It will come down to how much use crypto enjoys, and what that use actually is. If we're stuck in speculation mode even when we do exceed the $1 trillion total crypto market cap, it will not form a threat to any government.

People need to see the value of crypto as disruptive currencies, not as gambling tools allowing them to potentially make big gains. I'm sure we are still many many years away from being at that point.

That would not happen if the government would not allow it, let's think it this way, the world we are living is pretty regulated and if the government will ban bitcoin, things will look bad. The government will always protect their interest as fiat is the money they created, maybe I would believe that adoption of crypto will increase but it would not make fiat useless or make it inferior against crypto.

Really? I don`t think so.
Bitcoin is a threat with them. Many people even I have already trusted to save money in bitcoin form than in banks. Either the banks have smaller interests. I trust bitcoin because I already cashed out many times. Though, the network clogs sometime, I still be able to send money with my family even I am only at my house. Cryptocurrencies are way better than banks.

Well, that is just a reverse psychology as I think. They want to have assurance with their clients that they are still capable of transacting money better than bitcoin and blockchain. That is just to persuade their investors to lend more money with them since they just want to emphasize that banks are good. Let us just see how they capable to address one`s need.
They want to have a friendly game battle because they will promote cryptocurrencies for their own purpose

This is not just the big bankers. This was recently announced by the G20 countries on the results of the summit in Japan. In addition, it was stated that cryptocurrency can have a positive impact on the global financial system. This means that the states will continue the process of cryptocurrency legalization and we are expected by the general regulation of cryptocurrency at the level of intergovernmental organizations.

I think this is true because even though bitcoin can be considered by everyone to become a place to store, replace this feature of the bank but the level of risk in this process is still too big when it is not a stable coin, even with many other crypto, this is similar, very few coins are stable. In addition, too much information deception and defamation about crypto the value of trust with crypto is still low while trust in the bank remains constant, that makes the bank not too much pressure or fear before this weak threat

Really? because these conference was attended by many heads of state including my president and American president, very special if they also discussed about bitcoin. in my opinion, bitcoin does not threaten anything, but bitcoin improves the world economy, there should be someone who said that in that forum

I guess they are saying it will not destroy global financial stability, thats not a bad thing. Everyone keeps reading this and hears "banks will survive crypto and crypto is not strong enough to destroy banks" but maybe they are just saying "crypto is the new financial revolution and banks will adapt to it", maybe they are actually coming around and thinking crypto is actually what would make banks better?

That is still a possibility and I think that will ripple into the near future. There are many banks working with blockchains now or at least making experiments on them, there are ones trying to build their own coins and there are even a lot of talks banks supporting Libra as well, so as you can see crypto is not a threat, they are right, crypto is actually a support for them.

If that was true, it would really be a welcome development, but I have not come across such news, I know that there was a G20 summit, but never new that cryptocurrency was part of the agenda discussed, if it was, we ought to have seen that on cryptocurrency news sites which I do visit most of them on a daily basis, but have not come across anything close to that, also if something like that happened, these are type of the fundamentals that usually increase the chance of bitcoin surging, but I don’t think the recent surge is any way related to this meeting, and I would have loved that he can post the ink to the source of his information, otherwise I would just count it has rumor, but if it were to be true, then we are another one step ahead.

At the recent summit of G-20 countries, the issue of cryptocurrency was really discussed and a statement was made by the results of such discussion, which stated that cryptocurrency really does not represent a threat to global financial stability, and it was also suggested that it could have a positive impact on the economies of states.
Such an assessment of cryptocurrency by the world states creates good prerequisites for further price growth of cryptocurrency.

Crypto will not become a threat until it gotten big enough, the global leader could say that in public but im pretty sure they are already preparing regulations or some sort of thing, even Libra is now receiving pressure from various side there's no guarantee that the G20 countries will not take an action in the future.

Such a statement by bankers just indicates that cryptocurrency poses no threat to banks. Bankers in this case, it makes no sense to lie. Just cryptocurrency has not yet become widespread in order to actively express itself. In addition, states are in no hurry to legalize it, and this also leaves an imprint on the attitude towards it. However, on the other hand, let it be so, why do cryptocurrencies conflict with conventional currencies. Better to help each other better.

The fact is that Cryptocurrencies are not affecting global financial stability due to the fact that it is still adopted at a very minuscule scale which is less than 0.1% of global finances. Just think if cryptocurrencies become even 2-3% of the total currencies in circulation think of how the money can be laundered into Cryptocurrencies and this would go out from the circulation as per the central bank. They wouldn't have the correct money supply statistics while framing their policies which means external dynamics could become reason of inflation and deflation.

Bankers just want to make money. In a world of negative interest rates and low volatility, cryptocurrency offers the chance to make loads and loads of money because of how volatile it is.

So bankers will not only embrace crypto, they'll try to be the dominant players in trading it.

Governments are different. Some (like in the United States) are relaxed because they believe the dollar is not under threat. The weaker govts that have capital controls in place (like China) have banned crypto because it loosens their control over people.

I know people think bankers and the govt are the same - but in reality they have very different interests.

The less people believe that cryptocurrency is a threat the better for all of us. This causes a reduction in regulations surrounding its use and therefore allows greater freedom for anyone that holds crypto and makes the process of investing much easier for potential users.

Their statements are true for present time, Bitcoin really has not had any effect on the economy and makes up only a microscopic amount of the total transactions which occur. However, in the future it could pose a huge threat to regulated society, placing strain on banks and we will just have to wait and see how these bankers' views of bitcoin change when the realize its ability.

Probably because they can say that cryptocurrency does not threaten global financial stability due to lack of interest. I have a doubt, in the long run, they might regret what they say since cryptocurrencies for now and they will see now how good it is and very well known to many countries around the world. There are already many people investing in it because they find it more profitable rather than investing in the bank.

Thhe stability is not seen yet globally due to no mass adoption. Like their government, many government still didn't see the use of cryptocurrencies or blockchain good effects and useful functions if use by their government in financial planning. I don't think they don't consider it as threat since they know that their government will never opt to chance their system or to be this advance to use crypto and blockchain regularly.

No matter how much adoption cryptoccurency will get, most people are still dependent on banks and fiat and it can't even bother the global financial stability. Money will still continue to circulate and banks will still function. Even us. We're into cryptoccurency, but still we go to banks and we rely on them.

The popularity and population of crypto is not yet enough to be considered as a threat to them. As long as they're being supported by the government, they don't have to worry about it.

Also I think they find a good solution when the time comes that bitcoin is already knows all over the world and been already legalize. Maybe they will team up with other cryptocurrency, they will put withdrawal rates too more higher than usual. Add the fact that not all people now are do not know so much thing in bitcoin some of the rural areas do not have internet connection thats why traditional banking will always be the answer.

It is not going to change much for USA because of dollars value that is true and it is gonna be a big challenge for China or Russia because they are doing fine. However for the middle countries it may change a lot of stuff.

Like maybe Greece will start to accept crypto taxes in crypto form, anyone who has profited anything from crypto has to pay taxes to government in form of that currency, which means the treasury will have a ton of bitcoins sitting around, yeah they may end up with a bad financial situation at one time but they would have a ton of crypto to cover those expenses and get out of recession.

There are a ton of countries who are not USA, UK, China and what not. You can't just hope Venezuela or Zimbabwe figures out a way with crypto neither, they are too far gone. So, anyone who is at the middle would take advantage of it.

The last time I checked, the whole world economy is slowdown, rate of jobless people is high and every national currency is losing which was the reason why some wealthy people switch some of their funds into gold or invest in a mining farm. Cryptocurrencies are the best alternative for change globally.

We can't justify the capacity of cryptocurrencies through whats happening in Venezuela or Zimbabwe because the major cause of their problem there was bad government and I'm sure if the Zimbabwe government still allow cryptocurrency the state of their economy will be fair.

Big Banker want to protect their investor keep save money in bank and never move their assets in bitcoin, but other side when bank member know how increase money by saving in bitcoin they will move soon their money from the bank to bitcoin, but have ready for take risk with bitcoin price when up or bitcoin down.

If the big players in the financial industries says that bitcoin does not pose any threat to them, I think we should just agree that it does not because they are the ones that knows every financial structure and they are able to tell what poses threat or not, and I think it really does not pose threat since it will be impossible for fiat to die, fiat system is too strong, and what can only be eliminated is the paper currency and not fiat itself.

I think Mr satoshi also knows this, and this is why he created bitcoin to be an ALTERNATIVE to the fiat system and not as replacement. Also know that we are dealing with human beings, they can easily be manipulated, and many of these banks will only end of creating cryptocurrency for the government which they will impose on people.

What does the Indian government want anyway? What are they so afraid of? Crypto can't possibley be that big that it can cause this much drama. It juts seems like drama for the sake of drama and everyone up in arms about something or another making a huge noise. Stopping banks from operation with crypto-related businesses is a bad idea. These businesses bring external money into the country and provide jobs. How can that possibly be a bad thing? Too busy arguing about nonsense to see this great opportunity for their country.

yes I agree with you the existence of cryptocurrency will never threaten the stability of the global economy and banks. because cryptocurrency users when compared to bank customers is far more bank customers. and banks will always be supported by the government so it is unlikely that cryptocurrency will beat the bank. and some of our society is also not ready to make bitcoin and cryptocurrency the actual currency that we can use to shop. so I am sure we will always need banks and fiat money.

But I see your point is focusing on the present condition of the market, though, bankers opinion is based on their future preferences, we on the side of cryptocurrency sees a different view. Still the same that crypto will not impose threat to Global Financial Stability, but a threat to Bank operations and procedures. If most people will utilize cryptocurrency, how come banks manage fiats, or else, they should adopt blockchain technology to their systems.

It has no impact for now, as only 1% of the total population knows Bitcoin, so it has no effect at all, unless majority of countries regulate and implement this as a legal tender, as well as the adoption becomes 50% and up, then it will have a big impact in the global financial. It is not yet a threat for now, if the bank will not adopt and won't accept cryptocurrency soon, then, this will be their biggest mistake in the future, they cannot control the number of users to use this soon, so they should do something about it.

the country's economic system which is regulated by the government must have analyzed and studied the system used by the crypto currency and the possibility of the government has made a system to anticipate the development of crypto currencies and the consequences that would have been obtained by the country's economy if it had indeed threatened had of course been removed

Well, I have to say I agree with that.
Cryptocurrencies are still not regulated in majority of countries and not introduced into economy and financial system. Don't also forget that relatively small number of people is using cryptocurrencies and the volume of funds isn't big. Also, many people are just holding their coins instead of placing them in real world so I can't see how all this together could influence the economic stability.

Not in the near future. Adoption is still quite low to make an impact on the economy. In the meantime, the banks are preparing for eventualities by researching blockchain that would allow them to be more efficient and that might help them retain customers.

Just now I was reading a thread about China's plan for its own crypto. Cryptos might just go mainstream in the form of government crypto.

banks and crypto currencies everything that we cannot avoid if investing in crypto currencies because until now there are still many banks that refuse if crypto currencies can make banks experience something undesirable, of course they have made plans in anticipation of these problems

OK I got a bit confused with what you're trying to say there but if you are agreeing, then thanks. In business you really have to anticipate big changes. That meant not just preparing for what competitors are trying to do but also what would happen in your industry. For example the Klaytn Governance Council had certain Asian banks as members. Wouldn't be surprising if banks were active in the formation of similar initiatives.

Virtual currencies aren't really a threat, in fact it portrays and could offer lots of benefits and advantages to the economy in terms of boosting it. Cryptocurrencies already saved some country's business men and investors from the crisis theat certain countries are going through such as  inflation, economic crisis and such. If there would be any threat that the government could see, that is the decentralization of some coins making them lose control over it, but the threat of replacing fiat with cryptos are not to be bothered about for there are lots of things the cryptocurrency should enhance.

First, they said obvious things, the share of bitcoin in a market economy is negligible compared to other financial giants. However, how much noise around this little bubble creates!
Even if Bitcoin threatened them in the most direct way, they would say one thing, that everything is okay, but acted in such a way as to take control or limit the influence of cryptocurrency, which they are now doing.

It is not that much of a threat at the moment but maybe when the market volume of the cryptocurrencies would rise then it would be something massive that would influence greatly in the economy, industry and the welfare of the people.

we have entered the era of digitalization, so now the government should think about it more deeply,
I like China, Japan and Korea, even Singapore, they are all developed countries and support this technology, blockchain can change the world,
I don't believe that the US does not will support Bitcoin and its technology, hopefully the US government can realize that bitcoin is not a threat

Yes it is, cryptocurrency is not yet used worldwide, there still some problems that it is needed to be fix so that the whole world can adopt it, but the thing is it is not really a threat to bank, economy and financial stability of a country not unless it will be legalized and accepted as one of the major currency in every country, until it is not yet legal then it could not be a threat.

I almost choked myself up with water when I've heard the word "stability" from banks, I mean, really? that's the funniest joke I've ever heard if they are going to tell it's a joke instead of acting like a tough one against cryptocurrencies. I didn't know that stability means getting killed with inflations or by their monetary policies that lets them do whatever they want from their own currency.

I know this big banks are shaking up inside but pretending nothing is happening in their business for people not to panic and continue to support their "Scheme" by stealing people's money secretly.

But what we almost realize is that cryptos can't overcome its drawbacks because over the years, the government has spent a lot of time exploring and understanding that crypto is a system that includes these special features, destruction or containment is impossible. Fortunately, crypto has only grown within a relative range that does not exceed government limits, people only know how to use it for investing, rarely applied to real life when usefulness is not popular and inappropriate, so the bank does not feel the threat is certain when it is just an investment project for some people, not at a global level.

Let's admit it, major fiat currencies are pretty solid (as in rock-solid)

I mean currencies like the US dollar, Euro, Swiss frank, maybe a couple others. Indeed, they are all strictly inflationary in the long term, but the inflation rates in the range of 2-3% yearly are quite bearable and don't make a lot of difference within the timespan of a few years

Things are quite different with the rest of the bunch but as long as you can save your money in these "hard" currencies (by diversifying your cash portfolio), you can consider yourself more or less protected. The point is, whether Bitcoin will be a safe haven in case of a global financial meltdown remains an entirely open question

Big banker said crypto do not threaten their big fat wallet full of cash. Billions dollar in cryptos market cap is child play compare to trillions dollar they have amassed, they don’t even need to take any action yet, not until crypto slowly put some dent into their stronghold.

It is not a threat to them because they know that many people that are using cryptocurrency now are using it as digital asset and yet to be using it for payment and when it comes to the use of it as digital asset, we all know that in the end of the whole thing, people don’t keep the coin in the wallet, but rather, they change it to fiat and still keep it in the traditional banking system, so even the money they pull put off the bank into the cryptocurrency is being returned back to the bank with so much profit on it and thereby giving the bank more money to do the business that they like, but the day that bitcoin will start being used as currency is the time that banks will start feeling it as many people, will prefer to keep their money in their own personal wallet.

They care about the things that is why banks influencing governments to restrict the usage of crypto and asking for complete ban but still the debate is going on many countries.If they thought cryptos won't threat the world's banking sector then why they were doing those to crypto currencies.

Members of G20 group of nations' central bamk governors and ministers  had a meeting about it in fukoka Japan, and their discussion touched cryptocurrency space, economoc growth and financial stability. Financial leaders aimed to align anti-money laundering and discussed counter the funding of terrorism so that money won't be used for any ill intended activities. In this meeting they've also discussed that cryptocurrency doesn't affect or not even stand as a threat, in the contrary they even see that it has a great potential. They even admitted that technological innovations like these that underlies to the crypto aasets can deliver financial benefits to the financial stability system. They even brought up the concerns about the loss of funds of some users of crypto due to hacking and urged the FSB to work on enhancing cyber resilence.

They can't just stop from being a slave of the capitalists, how would they feed theirselves and their family. Only the rich are able to and they are just few, by the way they did'n have a slight chance to have a revolution, they are contented on what life they have. Worst is they even see crypto as a threat to their wealth. Interested people that wants a change are only a few, I include myself. The people who suffered great lost from the capitalist world, they want change too, and one day maybe the change we want isn't unreachable anymore through crypto.

It's not about socialism vs capitalism, it's about the people vs the state and the users vs centralized services. I've seen Bitcoin being criticized by both the wealthy elites and by socialist commenters, but inherently both arguments were the same - they were against Bitcoin's freedom, because it undermines centralized power.  Most of the people in the world still have the authoritarian mindset - they want the government to fix all their problems, instead of looking for solutions based on peaceful cooperation.

Banker try to keep their member always save money in the bank and never give chance for other currency investment try to get their member and why big banker give bad opinion with bitcoin and claim bitcoin is not good global financial stability, although fact bitcoin can increase people money value than keep saving money in the bank have inflation values.

The ideal form of the economic system should be like a pencil, the edges are pointed but the middle to bottom flat. As we know that the world economy is shaped like a pyramid, and the severity at this time, the base of the pyramid is wide, narrowed in the middle and sharply pointed high upwards.

The capitalists came to power because they had originally been the winners and the winners had taken everything. In addition, they use the power of the state to perpetuate their wealth. That strategy is used by capitalists at the top of the pyramid, and the capitalists at the top of this pyramid are solid and consolidated (little, small, compact) individually they are the rulers of the inverted pyramid. The system used by them is a bank. Banks plunder the savings of the poor, collected in all regions and used for the business community, business loans are usually higher interest rates than loans for corporations.

We can challenge the capitalist system in a way

- Don't put our money in the bank because the money we save in the bank will be used to enrich capitalism.
- Consolidation of the lower class economy (consolidated bottom of the pyramid). That is to consolidate the economy in the lower classes which in essence supports each other between the classes down. The aim is to divert the velocity of money from the capitalists to the lower classes.

Regardless of the economic system that is in place in a country any government is always going to want to have more control over their citizens and what better way to control your citizens than to control their money, if you can do that then you can easily silence any opponents to your regimen as you could always steal their money away and not allow them to function in the society, but bitcoin has the potential to put a stop to those plans and they do not like that one bit.

Global financial stability is more disturbed by completely different factors. The ghost of a new global financial crisis has long been wandering around the world, and vice versa, bitcoin can serve as anchor in a future raging storm. And do not forget about the traditional defensive asset like gold.

As long as you know how to do your research and you understand the things that you needed to consider, there's always good from each venue of investment. It's your obligations to make proper study and assess things out for the betterment of your assets.

Global crisis is always a threat being wise and ready can lessen your chances being broke, anticipate and workout in every advantages that you can have.

Is that so? As I recall there are cases where people who opened an account in some particular banks, when the bank had learned that the account holder is somehow connected to the cryptoworld they would terminate the account with this pretext. I can’t remember the country but you can try searching some articles relating this. This bankers would say a lot of things but the thing is that Bitcoin or other cryptocurrencies didn’t exist to disrupt global financial stability but it is to aid to reinforce.

This is a classical case of ‘watch what they do not what they say’ they may say that cryptocurrencies are not a threat to their system but when you know that if most banks around the world find that you are dealing with cryptocurrencies they begin to ask for all kind of information and they will still close your account even if you comply then that is a clear sign of what they really think about this market in general and its potential to displace them.

I agree. Some banks may see bitcoin as a potential threat to their system while some other banks would regulate and support bitcoin because they really know the effects of tolerating it. We should also look forward on seeing cryptocurruncies being invested and transacted in the banks together with fiat in harmony. That would totally make a huge impact on the current monetary system we have right now so let us keep on spreading the good news about bitcoin so that sooner or later, crypto will be regulated all over the world.

Why do they have to be afraid of bitcoin? Don't you think that banks can turn everything from opposite to benefit?
Well, you use bitcoin and want to convert it in USD because bitcoin's value is decided in USD, bitcoin isn't independent currency in this case, bitcoin doesn't have it's own private, separate value. So you need to exchange them in btc and in this case banks have huge opportunity, they can offer you this service with their visa/master card and make it even more comfortable for you.
Bitcoin isn't old thing that we knew in past, it's now commercial thing, huge business that has huge profit potential.

Bitcoin can become an anchor in the hypothetical storm of the global crisis only for those who buy it before the rise in price. Those who will buy it at the peak of the next price increase lose even more money when Bitcoin loses in price, will be disappointed in it even more than in some weak national currencies. More reliable action in hyperinflation is the purchase of gold and reserve fiat currencies. 

But you are only seeing how things work now and not how they may work in the future, what banks are afraid is that people begin to exchange bitcoin directly for products and different services without exchanging bitcoin first for fiat, if that begins to happen then bitcoin will begin to replace the banking system, and banks like any industry does not like at all the idea of being replaced by a new technology and they will do everything in their power to stop this.

When we talk about potential interest rates then we cant really deny that crypto would really have the edge or far way more better option than storing up your fiat into a bank but if we do

talk about security? Then we cant really avoid or deny the fact that we are still fully dependent or much preferred with traditional banking system.If big bankers do say that crypto doesnt pose up a threat for
global financial stability and i can say that these are just the opposite words and we know on what they are doing behind when it comes to suppressing things that opposes their likings.

In the country that wants to adapt to the environment with full of technology and innovation, it is better to use the cryptocurrency. Make each of the transactions more comfortable and efficient. Today not just Japan adapting the use of crypto. From the previous articles and news china changes the use of cryptocurrency, and it was good news they want to improve society.

The volatility of the cryptocurrencies in the market is what makes the big bankers to not be threaten. People doesn't want to stick to something that is unstable, majority of the people in this world always prefer a currency that is stable and regulated so they can feel comfortable when using it and they know that there is someone that is leading them which is the government.

nope, this sounds ridiculous. So how do they control a bunch of money manipulation and manipulation organizations here every day? Do they have any evidence to identify users of wallets with money transfer activity? Obviously the answer is no.
trusting cryptocurrencies is a very wrong decision because if they have the capacity, they will soon accept the cryptocurrency market and have participated in it to make a lot of profit. and furthermore, if cryptos were easy to control, Congress in the United States would not have strictly forbidden Libra.

It depends of your perspective, if you were to ask me what it is the biggest threat to the current economic system bitcoin will not be my answer, I would think that governments and banks are the biggest threats to their own system, bitcoin is only going to be there to take advantage of their bad situation in which they will find themselves in, that is why they are not afraid since they think they have everything under their control but once they realize that is not true they will begin to panic about bitcoin and the consequences it will bring to them.

Big bankers always have this ideology. People commonly have a thinking, something instable isn't good to be used as same as fiat. Global financial stability is much associated with the fiat as the cryptocurrency contributions were very low. Governments that are with the plans of adoption and development of own cryptocurrency feels this to be too early for the same.

fiats not stable  ?  i think your wrong  . fiats are stable  .  people do also love the idea behind cryptos , the unstability of cryptos rather because this gives them a potential to earn  . crypto do not threaten the financial stability at all because it does not over lap with the fiat .  fiat are still the ones the riegn offline while people only use crypto on the side specifically for online use and for doing business like trading or investing  . bankers infact love crypto's and not hating it .

Yeah in the start banks were afraid of crypto as they used to think that crypto might surpass fiat as it is borderless and anonymous and upto a certain extent they were also right.
So to overcome this they started campaigning against crypto altogether in the shadows and made the reputation of crypto as a payment method used for buying drugs and money laundering. Now crypto market is less than a trillion dollars combined and this is just a small pond as compared to the oceanic fiat currencies.

We cannot deny that the cryptocurrencies are being used to do illegal activities in the black market like buying drugs and so on but even though the government didn't start to spread that, they could still make sure that cryptocurrency cannot surpass the market of fiat currencies because they all know that they have the control in rules and regulation in a certain state or country.

That is not the real game here, I think. There is a lot more than that. This is for sure that bitcoin and altcoins are going to take over fiat and this won’t take much time now. In the beginnings, bankers were afraid of crypto currencies but just look at the history of ripple and the picture will become clearer. If banks come up with their crypt currencies, they really don't have to feel any more threaten by digital assets. They will simply make a friendship with these coins.

Guess what, the same thing happened to fiat and government just close their eyes regarding this matter and don't have the initative to take action but instead just letting it be because the more fiat used worldwide the more value it has. You can't generalize that cryptocurrency is the currency of criminal just because some people take advantage of it for doing that. it's just some really few group that did such activities and most of them are gradually being caught by the cops anyway.

If you study the history of the old world, such as France, then according to the information you can find out that in those days, bankers practically forced the rulers of states to make certain decisions related to government or even the start and end of hostilities with other states.  The rulers of the states at that time were very dependent on bankers because of their debts.  Currently, the situation is completely different and the government controls the banking system.  But if you take the World Bank as an example, then it very often dictates the terms to many states, especially those that receive money tranches.

People have the idea that bitcoin is unstable because they are always looking at its value in fiat, but when you look at bitcoin and you compared to itself you will see that it has a very low inflation each year and with each halving that inflation is going down unlike what is happening with fiat, so bitcoin is really stable in that sense while fiat is the one that is suffering a huge inflation, if at some point bitcoin breaks free from fiat then it could become the most stable currency to ever exist in the world.

Cryptocurrencies by its characteristics and structure can't be threat to financial system. They can't actually be introduced into that system, cryptocurrencies can't replace fiat currencies and in general very small number of overall population is using cryptocurrencies.
But the purpose of cryptocurrencies is not to make financial system unstable or to replace fiat currencies so we need to find the best way how to get the best of both, fiat currencies and cryptocurrencies together.

The banks and the governments are connected so even cryptocurrencies will become big in the future, as long as the government will not allow or give permission to cryptocurrency to fully penetrate a certain country then there will be no threat for the financial institutions and financial stability because people will be forced to use fiat currencies and other traditional financial tool because they don't have a choice but to obey to the rules and regulation of the government.

we are already enjoying the benefits of both system - crypto and banks. if you are a crypto user, i guess you are enjoying the conversion of your crypto to fiat easily at minimal fee and if you send somebody money to another side of the world you can do so with crypto incurring a very small fee.
and in terms of utilizing banks, still the same. because you need them for different purposes. who knows, they are already creating their own digital currencies to be used within their operations?

Is what they call financial stability the privatization of the financial sector? Despite the global financial stability by traditional banking,  it couldn't stop economy recession. Then why wont cryptocurrency if well regulated not engender global financial stability.
The Analysis has proven cryptocurrency to be the liberator of our financial stability. But I don't want fiat to be entirely eliminated due to crypto volatility.

You are thinking this from the perspective of the people but from the perspective of governments and banks if more people begin to use cryptocurrencies then that is a sign that they are leaving behind the system that they had put in place, and there is no business in the world that likes the idea of losing customers to a competitor so I'm completely sure that they're going to do everything to stop that from happening but they do not know how to do that because it is impossible to stop something like bitcoin.

Did you have to quote the entire OP?  Just sayin'.

Never heard of the Financial Stability Board, but their proclamation sounds like they almost approve of cryptocurrencies, which is kind of a good thing.  I also think they're correct, that bitcoin and all the other coins on the market aren't a threat to anything--especially not financial stability.  The only thing that's a threat to that is the bankers themselves and their shady practices, as well as the US printing money like it's going out of style.  That might screw things up for the next few generations, so the millenials' kids and grandkids can thank the Fed for that.

Major market financiers still do not take bitcoin seriously. I'm not surprised. Because the total value of the bitcoin market is still very low. $ 250 billion. Not a very important amount. There is much more money in the world markets.

The major reason behind the success of bitcoin and other coins has been their decentralized nature and you want that to disappear. This is the most important thing for investors because now the common people want to get economical freedom. Nobody can control or own bitcoin and decentralized altcoins. Anonymity provided by these coins is more like privacy to holders and they have right to have it.

for the point of view of the government it may still be difficult not to control the decentralized system. there are still many considerations that must be resolved. but the development of the era continues to grow, and every country must follow it, to become a developed country

Financialists and major banks do not appreciate bitcoin perhaps a reasonable thing when we stand at many angles, bitcoin is just a place to invest and with the level of risk visible, the number of people investing in bitcoin is only a relatively small amount compared to the world market, even with bitcoin having record price increases like in the past, the capitalization of this market is still not too much, feeling the threat is not existent. And if this threat arises, governments can still sniff it in time and deal with it, banks understand it.

Why should they? They've got a lot riding on the old system. Anything like Bitcoin threatens that system, and therefore, their livelihoods there. Imagine a market like Bitcoin where not everything is centralised. P2P exchanges. Non custodial platforms. Where only a small volume is available on markets they can control and regulate.

How would they be able to move and manipulate at will anymore?

And a system that doesn't like debt and doesn't like creating value out of thin air? Terrible!

I have the complete opposite reading of the situation, if bitcoin was not a threat as they say then they will not take the time to say that it is not a threat, they are just trying to give the impression that bitcoin is not a problem for them and in a way they are right their biggest problem as of right now comes from their own mismanagement, but once that becomes obvious to the whole world that is when bitcoin is going to really become a threat to them and to what they stand for.

Perhaps it is true that crypto is not currently a threat to global finance. For the moment. But the day a critical mass of users should be created, then a real revolution will start. But it still seems far away.
For the moment...

I think as long as crypto is not used as the main currency then it will still be fine for global finance, it is different when many countries have made crypto as the currency of their country and then the people switch to crypto, then at least it is a threat also to finally. But no one knows about the future and I think the government will very attention about this so it will keep the balance well maintained.

Big players know what they’re doing. It seems to me on the contrary that cryptocurrencies threaten the financial structure.

Well crypto currencies are threat in a way that they are simply making people independent of government. They are not allowing government to interfere in the financial matters of people as there is no taxation on crypto currencies. For common people, cryptos are great but for government tax department, they could act as a threat but at present they are not doing any harm.

That should already show why cryptocurrencies should be tolerated more all over the world. There are no threats posed for the world's financial stability and it may even help the global economy grow up even more. If we are going to look up at some countries that are regulating bitcoin already, we can see how helpful it is for their economy. Maybe it would take time but I think if ever India regulates crypto, it would contribute a lot for the betterment of the crypto world. Someday sooner, we will definitely see digital currency replacing fiat, we just need to be patient and keep on patronizing it.

But how long is that going to last? No one knows when but it is obvious that the economies of the world are not really in a good shape, they are trying to hide this fact by printing money and by ignoring each other debts but we will come to a point in which it will be impossible to ignore those problems anymore and when that happens many of the people that have no savings and not assets and that only have debts will wake up one day to find out that the world has changed forever and not for the better and they will look for alternatives, and bitcoin will be there to offer one.

I am pretty sure that government will figure out a way to put some taxes on bitcoin transactions or on over all crypto market. I often say that if governments make deals with exchanges through which people buy bitcoin or make transactions, then government is able to grab its share from crypto users. There is no way government will leave this industry free of taxes and this is why they are not legalizing it yet.

With cryptocurrencies we are simply back to square one, or back to the roots if you like it more this way

I mean we have been on fiat only for a very small amount of time if we compare this period with the amount of time we have not been on fiat. More specifically, fiat, in its present form, came about only a few decades ago, and before that, which had been for quite a few millinea (feel the difference), we were on precious metals as money (since pharaohs, to be exact). And you know what? The government had to live with that somehow

It could debase its official gold or silver coin as much as it pleased, which it in fact habitually did since Ancient Greeks and Romans (and probably pharaohs too), but it couldn't debase the metals themselves, their worthiness and value as such. It is only for the last 40 years that gold lost some of its shine and appeal. But now we have Bitcoin which is going to shine as bright and appeal as strong (with gold as a backup option, indeed)

Bitcoin is an alternative to the global economic system. Today the bitcoin price and total market value may not be too large. The value of the whole market in world markets can be very small. But there is a promise. You don't have to kill the king, you hurt him. Show me you can hurt the king. Now you have learned the limits of the king's power. Bitcoin punched the global economic system.

And the worst part for governments is that they do not have means to strike back at bitcoin, bitcoin punched them and they cannot punch bitcoin back, they cannot just seize a few servers and kill bitcoin since it is everywhere just like the Internet, they are trying to slow down its adoption and they are trying to put hurdles on its path but at the end all of that is useless and they know it, bitcoin is superior to their fiat and the superior product has a strong tendency to win over the inferior product.

yes I also think that bitcoin and cryptocurrrency will not threaten the global financial system. because cryptocurrency is decentralized, nobody controls and is not influenced by world political and economic news. so that if something happens with cryptocurrency it will not have an impact on the global economy. so that if a country adopts or legalizes bitcoin it will not threaten the sovereignty of the national currency.

Action speaks louder than words and we have seen actions of governments along with central banks towards crypto currency and they are not positive at all. With increase in adoption of cryptocurrency governments are brining strict regulations for cryptocurrency. If they have no fear for that then why they banning use of crypto?

in my opinion bitcoin will not threaten global financial stability because bitcoin is not the main currency in the world and is also not a global currency. and also if we compare the number of bitcoin investors with the world stock market. of course the number of bitcoin investors is small. so if bitcoin experiences a large pump or dump it will not affect the world economy. bitcoin and cryptocurrency have their own economic pathways.

I also believe that cryptocurrencies do not affect global finance. On the contrary, it helps the country's economy grow stronger. Usually in countries with high economies, many people will invest in cryptocurrencies. Large capital investment and greater profits. I know that some countries now accept cashless economies. I believe cryptocurrencies will have a foothold in the future. Please give your own opinion.

for the time being, cryptocurrency seemed not to appeal to governments. they seem to only be open to the blockchain, and we know blockchain and cyrpto are different things even though the two are developing together. blockchain can stand without crypto, but not vice versa

Looking at market capitalization, especially bitcoin's capitalization, with a capitalization that is too small for the rest of the world, even if the price increase could be many times, the threat level of bitcoin is still too low but obviously, the story that bitcoin can increase many times, it's not easy to happen when the crypto market in recent years has been less volatile on bitcoin. And the financial sector in the world is based on so many different areas combined with strong governance from the government to get the best results, bitcoin is a product without such conditions, it is clear is not threatening

The truth is that cryptocurrency, technically, can destroy an established financial system. More precisely, to destroy the dependence of the world economy on the dollar. All that is needed is the complete eradication of cryptocurrency volatility, which is extremely difficult due to the limited number of the same bitcoins. However, this does not mean that you cannot use another currency that can get rid of dependence on bitcoin in the future.

I wonder what kind of marketcap Bitcoin needs to have in order to be a threat. As it stands right now Bitcoin's marketcap is penuts in order to be a threat.

The things you are taking about are impossible, you cannot remove the volatility and you cannot destroy the dependence of the US dollar globally for trading and if that were to happen you need to give incentives to the merchants globally for transacting in bitcoin which is not going to happen and if they are planning to purchase bitcoin in huge number they need to spend a lot of money if they want to trade using bitcoin for any huge deals, so do they go the confusing route or the easy route the banking system to send the money, if you are a bitcoiner then it is easy to trade globally but if you are new then it is another hurdle.

As a currency, Bitcoin is not a competitor to the dollar

So it can't possibly destroy the established financial system as represented in this day and age by the American dollar. It can compete with the latter as a very unconventional store of value due to its complete disconnection and separation from the mentioned system, but there are many other classes of assets which are as independent and self-sufficient as Bitcoin (for example, precious metals, to name but just a few)

Entirely different thing, blockchain is simply a system if the government want they'd modify it to suits their need and that practice already happening to all those stablecoins. Meanwhile, crypto is created for the sole purposes of opposing centralization in this case to let no people get too much power and also to create cashless society replacing the existing paper money. Country like China might be using blockchain to further advance their system and possibly improvise it to some certain extent, blockchain is versatile after all.

I strongly agree that cryptocurrency does not threaten the global financial stability. Because it used and owned cryptocurrency still a minority,
so how can it threaten global financial stability. And also no one country that uses cryptocurrency as a major currency. Then I totally agree
with the saying that cryptocurrency is not possible to replace the role of fiat. Very few countries have banned cryptocurrency, because both
governments and banks know that cryptocurrency will not threatens global financial stability.If there is a country that prohibits cryptocurrency
in my opinion only paranoid.

There are many ways in which the banks earn money and one of them is the use of fees, bitcoin may charge fees that could be too expensive for some of your everyday activites like buying a cup of coffee but when it comes to larger amounts of money bitcoin is way cheaper and faster than the banks and I do not know of a single business that likes to lose some of their safest forms of revenue, so banks will be affected somewhat by this in the future but that will not be enough to make them disappear as many people think.

I've always thought the same thing, because I don't really see how cryptocurrency affects banks, although I think it could affect how much they earn from transactions as many people might start opting for Bitcoin to make transactions. But apart from that, I don't think cryptocurrency impacts banks any other way. If it affected them, they would have started all this while against it, and that would have caused the government to stop once and for all cryptocurrency

Exactly, but many people don't accept such a simple story, they always try to create fake information, add more salt and sugar to the dish, they always want to elevate the position of crypto in society and its impact on banks, their purpose seems to create meaningless wars and debates, and use that fight to promote crypto. They may have succeeded in stimulating people's psychology but on the opposite side, banks are more clear about this than anyone, this tiny crypto market doesn't make any waves in front of the banks