Fiat, Banks and the future of Cryptocurrencies

[felixesteban]

Banks do not see bitcoin and other altcoins as a threat at all because of the volume is too small. If they want to destroy bitcoin, it's going to be easy for them. The banking system is perhaps one of the most powerful structures in the world. They're just observing and evaluating the situation. Unfortunately, fraud has a negative impact on the cryptos, which is why governments and banks have to fight.

[Sum24]

flats is near to expire because bitcoin is gaining more fan following and investors are rushing toward bitcoin to make it the global coin of the world and i am sure banks will also exit when bitcoin will be implemented as currency and people are now really satisfied by using bitcoin,



Fiat will remain on this planet as long as the issue with bitcoin can't be solve.
what is the problem that FIAT making stronger now than 2017!
Bitcoin transfer fee and speed is the main issue here and we experience those problem on the last month of 2017!
Bitcoin is nothing with out the presence of the internet, this is a huge blow to crypto! not all people have the connection with internet.

Very disappointing when bitcoin is reserved as the currency of the future cannot solve the main problem of transaction speed so that fiat and banks are able to take advantage of the weaknesses of the bitcoin to strengthen the existence of fiat and bank so as not to be replaced by digital currency like bitcoin.

I am totally disagree with above statement as for me bitcoin is the most wanted and most respectable investment which is currency to buy goods and saving to make future brighter, banks will only keep your fiat to save for long time and it will get rusted but will not earn profit for you as bitcoin is best choice as holding bitcoin gives us money and it will increase your money more than double if you will hold it with patience.

[hhussain]

The bitcoin state is one which is decentralized whereas when you look at the state and the system for banks, the whole system is on the philosophy of centralization where all of the banks is controlled by a central bank's which decides the supply and the price of the currency

[Snaic]

I do not think that banks will refuse to work with crypto currency for a very long time, or they will set the rules harder than when working with conventional currency. Everything will depend on how successfully bitcoin and other crypto currency will be legalized by the states. If this happens successfully, banks will not want to lose their share of profits and will provide services in the crypto currency. In addition, if citizens have the opportunity not to apply to banks for exchanging crypto currency in fiat, and to use various decentralized sites and exchangers, other possibilities, then banks are unlikely to be able to establish their tough rules when working with crypto currency. For them, this will mean an actual loss of profits.

[cellard]

Ignoring all the ICO and altcoin scams and focusing on the plausible scenario of Bitcoin as reserve currency and it's interaction with banks by then: I believe banks will still exists, since not everyone is a computer expert to keep their private keys safe. Banks will charge money to keep computer illiterate people's bitcoins safe from hacking and other threats.

I think there will be an huge business there. Banks don't need to necessarily disappear, just adapt, and the field is clear: being custodians of bitcoin, huge market niche there, there will be competition and good alternatives to choose from. One might think this defeats the purpose of Bitcoin, but that's beside the point.

[netil]

When banks begin to worry about "criminality in crypto", I always get ridiculous. And where is it interesting to store your money around the world before crypto? In mattresses? No, their money was laundered by those bankers who are now shouting that bitcoin is a bubble. Simply they understand that the ideas of the banking system for more than 500 years and crypto will now change everything

[IMAR]

Banks is ok anyway but there are middleman, clearing house that creates additional charges on the exchange process and its expensive. While cryptocurrency creates that transfer way faster and way cheaper than banks. I believe that cryptocurrency will going to be massive in the near future that most of the company will going to adopt its system. Good luck.

[queenstella]

Fiat money is a currency without intrinsic value that has been established as money, often by government regulation. Fiat money does not have use value, and has value only because a government maintains its value, or because parties engaging in exchange agree on its value.
Big banks and financial institutions failed to adopt bitcoin because it was too slow. Bitcoin takes 10 minutes to “confirm” a transaction.

[Sled]

Soon enough we will see a collaboration between the fiat, banks and the cryptocurrency in the future because that is where cryptocurrency is going since it has a technology that the fiat and the banks need so they can have a better future in the making. Cryptocurrencies might be look like a scam or a bad image for other people in investing but it the future, it will be playing a big role.

[faza13]

2. If more and more banks adapt similar measures (or even stricter ones, like some credit card companies disallowing financing of cryptos all together), what do you think the implications on the market place will be? For instance, do you think exchange without KYC's will suffer?

No I don't think so,they will still be exist, by applying non-fiat exchanges, they will still run because not all depend on fiat

3. Do you think this could lead to "ICO heavens" where only ICO's will have a chance to survive that undergo a stringent background check that would be acceptable for banks?

maybe it will be like that. this is like a selection stage

[gnaylor]

You may have heard that many European banks with most of its concentration lying in Germany have accepted cryptocurrency as their regulator or latest have accepted investments in cryptocurrencies, the only thing that banks need is stability which bitcoin is approaching

[GangNamSK]

Ignoring all the ICO and altcoin scams and focusing on the plausible scenario of Bitcoin as reserve currency and it's interaction with banks by then: I believe banks will still exists, since not everyone is a computer expert to keep their private keys safe. Banks will charge money to keep computer illiterate people's bitcoins safe from hacking and other threats.

I think there will be an huge business there. Banks don't need to necessarily disappear, just adapt, and the field is clear: being custodians of bitcoin, huge market niche there, there will be competition and good alternatives to choose from. One might think this defeats the purpose of Bitcoin, but that's beside the point.

Futures banks are just that, it's just a matter of adjusting to electronic money. The bank represents the government that stands out for your assets, away from hackers. I think in the next few years if the country is modernizing, electronic money will replace all activities of cash and other transactions. At that time the bank only represented the protection of electronic numbers is possible.

[nidacoinlove]

Ignoring all the ICO and altcoin scams and focusing on the plausible scenario of Bitcoin as reserve currency and it's interaction with banks by then: I believe banks will still exists, since not everyone is a computer expert to keep their private keys safe. Banks will charge money to keep computer illiterate people's bitcoins safe from hacking and other threats.

I think there will be an huge business there. Banks don't need to necessarily disappear, just adapt, and the field is clear: being custodians of bitcoin, huge market niche there, there will be competition and good alternatives to choose from. One might think this defeats the purpose of Bitcoin, but that's beside the point.

Futures banks are just that, it's just a matter of adjusting to electronic money. The bank represents the government that stands out for your assets, away from hackers. I think in the next few years if the country is modernizing, electronic money will replace all activities of cash and other transactions. At that time the bank only represented the protection of electronic numbers is possible.

Dear fellow banks are already operating electronic money, the use of cash has already too much reduced. Let me mention not due to cryptocurrency but due to banks has switched to electronic money. We pay our utility bills from our account through web or mobile banking.

[setialovers]

When government regulate cryptocurrency, i am believe ICOs will be more selected. Regulation can reducing scam ICOs. I think future banks is like exchanger because in cryptocurrency, we dont need third party for transaction.

[VBCryp@]

I would like to make a rough estimate of my nature, for fiat, they are always one of the currencies that do not have any currency that can change them, and I believe that in the future the bank will have difficulty. If the crypto market continues to grow, the bank will freeze. The crypto market will grow to be high and sustainable later on.

[darewaller]

As probably most people on this forum, I am fairly active in investing and trading in cryptocurrencies. I had some luck and made a little money with it, but I am now concerned to move some of the gains back to fiat.

In particular, I am working for a large, global bank (which shall remain unnamed for now). They are in the process of setting up new guidelines to deal with clients that engage in cryptocurrency markets. For instance, they are monitoring money inflow from cryptoexchanges and would reject any money that comes from non-approved exchanges (in particular those that don't have strong KYC procedures). Furthermore, for larger amounts, they would even require some proof how the gain was obtained.

A couple of critical items I want to raise for discussion:

1. If somebody has experienced such complications with their banks already, it would be interesting to hear about their stories
2. If more and more banks adapt similar measures (or even stricter ones, like some credit card companies disallowing financing of cryptos all together), what do you think the implications on the market place will be? For instance, do you think exchange without KYC's will suffer?
3. Do you think this could lead to "ICO heavens" where only ICO's will have a chance to survive that undergo a stringent background check that would be acceptable for banks?

I do understand the banks concern to ensure that there is no money laundering or criminal financing involved, but such restrictive, strict measures could have a significant impact on the entire cryptocurrency market. In a doomsday scenario, I could even imagine banks globally to impose similar restrictions worldwide, and thus even killing the entire cryptomarket. The fact that more and more internet shops, service providers, or even brick-and-mortar shops might accept cryptocurrencies does not really solve the problem, as these shops would be forced by THEIR banks to impose stricter measures on their clients. Thus the problem remains, but would be shifted along the chain.  Do you think such a scenario is plausible?

I’m not experiencing such with my bank. And as for what I think may happen in the future, I just think that the government will let people make use of Bitcoin and there will also be a strong connection between banks in the world and Blockchain and they might also be charging some extra fees for transactions you make from cryptocurrency exchanges to banks. Well, what do I know? I know nothing so no need to be doing all these predictions of a thing lol.

[Samarkand]

Ignoring all the ICO and altcoin scams and focusing on the plausible scenario of Bitcoin as reserve currency and it's interaction with banks by then: I believe banks will still exists, since not everyone is a computer expert to keep their private keys safe. Banks will charge money to keep computer illiterate people's bitcoins safe from hacking and other threats.
...

Let´s assume that your prediction is correct for a moment. How much would banks
even be able to charge for such a service? Right now they are earning money through
a multitude of financial products (from checking accounts to exotic derivatives). I think
that the potential profit of a service that you describe is much lower than the
profit that the banks currently make.

If this scenario does indeed come true, banks will have to shrink in size and probably
will have to be run with a fraction of the staff (and probably without a meaningful
network of branches as well).

I think the Japanese banks are quite smart in this regard, because they position themselves in a
way that they profit from cryptocurrency exchanges (either by founding their own exchange or
by owning shares of an existing exchange).

[Ranly123]

First I do not know why it is a problem to transfer some of your profit to fiat,you do not want to pay tax or your crypto exchange does not have KYC?

I think that banks are perhaps the most powerful institutions in the world,and if they want it is very easy for them to strike on cryptocurrency very hard.Imagine that all or most of worlds banks say that buying/selling cryptocurrency becomes illegal,it means no direct money flow from banks to exchanges and vice versa.People would have to find another way to to buy/sell crypto,so only to trade in person or maybe on ATMs.

So far banks still evaluate situation what to do with BTC and cryptocurrency in general,we see some news that they are not still seriously concerned(not losing to much profit I suppose),but if profits star to go down and Lightning Network really improve scalability and make transaction fast&cheap there will be some reaction from banks for sure.

Regarding ICO I do not have any opinion how would such scenario reflected on this kind of business,but in general they will also be affected if banks are set completely negative toward cryptocurrency.

I also agree with the thought that banks are the most powerful institution in a financial department. With now the emergence of crypto, they sure are finding ways to handle it and deal with this new trend of currency.

[jeronimosuykens]

Soon enough we will see a collaboration between the fiat, banks and the cryptocurrency in the future because that is where cryptocurrency is going since it has a technology that the fiat and the banks need so they can have a better future in the making. Cryptocurrencies might be look like a scam or a bad image for other people in investing but it the future, it will be playing a big role.

Electronic money needs more time to reach most of the community. There are still many skeptics about it that still exist. The future of banks with electronic money is not certain. It is important that everyone agrees to accept electronic money. Then you can go on.

[MirzaofDaska]

While the concept of Bitcoin ATMs is ground breaking in itself, it’s important to take note of how the cryptocurrency ecosystem and blockchain technology can help break down traditional banking barriers. As more of the global population continues to operate without centralized banks, Bitcoin and other cryptocurrencies can be used and managed all on a cell phone. And as more cryptocurrency ATM models enter the scene, crypto holders are now able to make use of their digital assets by instantly cashing out.