[2019-03-26]Why Cryptocurrency & Banks are Inseparable

[Vladdirescu87]

The coordination between banking institutions and cryptocurrency is still uncertain. Crypto exchanges don’t believe in creating connections with banks to avoid losing their identity, though sometimes its appears that they are inseparable.

According to Ron Karpovich, the head of the e-commerce department at JPMorgan, the crypto sector will depend on the banking institutions to transfer funds from place to place. In the same manner, blockchain can be employed in financial institutions to enhance and quicken the payment system happening in banks.

Read the details in the article of Coinidol dot com, the world blockchain news outlet: https://coinidol.com/cryptocurrency-banks-inseparable/

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[Naida_BR]

In my opinion, both ecosystem are going to be needed in our society.
Each one of them serve the needs of different target groups and they have different operations. Also, there will be a connection between these two different world and we are going to need banks in order to fuel the crypto industry with funds.

[cr1776]

As long as there is need to convert fiat to crypto and back, the banks will be inseparable.  Once there are a sufficient number of people who will use crypt without converting back to fiat, then the need for banks will decrease.

[pixie85]

Somebody from JP Morgan is talking about crypto again and its connection to banks. The same JP Morgan that was supposed to fire every employee caught trading crypto.
This is getting more funny by the day. They are cooking something in that bank because lately they are almost as much in the crypto media as any other crypto company. 

[Ozero]

In my opinion, both ecosystem are going to be needed in our society.
Each one of them serve the needs of different target groups and they have different operations. Also, there will be a connection between these two different world and we are going to need banks in order to fuel the crypto industry with funds.

Of course, banks will be needed in order to make it easier for people to buy and sell cryptocurrency, since it may be difficult for some categories of people on the Internet. However, it is also not possible to say that a cryptocurrency cannot exist without the help of banks. It is just that both banks and cryptocurrency will mutually beneficially coexist and cooperate with each other.

[Kakmakr]

If Bitcoin was more widespread, no centralized services linked to Banks would have been necessary. Now, people must link their Bitcoin exchange account to their Bank account <destroying their pseudo anonymity> to convert Fiat currency to bitcoins.

Widespread adoption of Bitcoin, would enable more person to person trades, without the need of a centralized Fiat based intermediary like exchanges.

We should concentrate our efforts to put more coins into more people's pockets, so that informal trading of coins and Fiat can replace these centralized Fiat based companies. 

[1Referee]

As long as there is need to convert fiat to crypto and back, the banks will be inseparable.  Once there are a sufficient number of people who will use crypt without converting back to fiat, then the need for banks will decrease.

Banks will always find a way to remain relevant in the crypto space. People here tend to be so overly bullish on everything related to crypto thinking banks and governments will vanish from earth, but that's wishful thinking.

Interest on crypto balances, insurance on crypto balances, insurance on crypto payments, etc. If banks end up offering these features, they will become wildly popular because of how people are. Coinbase and Xapo hold hundreds of millions to billions in Bitcoin because people think these entities can do a better job securing their coins. Some people just want to geographically store their coins in the safest possible way instead of holding everything themselves.

It's easy to hold a few thousand worth of Bitcoin yourself, but once it concerns millions, people suddenly look around for these centralized entities to hedge their risk.

[riritsurya1202]

Banks will always find a way to remain relevant in the crypto space. People here tend to be so overly bullish on everything related to crypto thinking banks and governments will vanish from earth, but that's wishful thinking.

Agree. As long as fiat exist, bank won't vanish. And I don't think fiat will cease to disappear because that's the one of the most powerful thing that government to control their policy. I think Bitcoin will be famous as a store of value, or electronic payment.

[stomachgrowls]

As long as there is need to convert fiat to crypto and back, the banks will be inseparable.  Once there are a sufficient number of people who will use crypt without converting back to fiat, then the need for banks will decrease.

But i dont see that we would really be on that situation.We hate banks but we cant really still able to break the chain of reality that we do really need these institution.We know that conversion from Crypto to fiat will always tied up with bank transactions thats why its inseparable.
Just presuming that banks will completely block all possible exchange transactions then i cant imagine the hardship of crypto users/investors/traders.

[LeGaulois]

By using cryptocurrencies we are not supposed to be interested to have a relationship with the banking system. If this is the case at the moment it is simply because we have no other way than to convert it to fiats since we do not have enough merchants who accept this payment method but if it were possible we would gladly do without Visa and co with banks.

If the blockchain technology will be employed in finance it doesn't mean cryptocurrencies will. This person believing that banks are essential to cryptos is wrong because once the ecosystem is well developed we may very well be able to totally remove banks from our life (except of course when it comes to borrowing money, financial investments, or saving accounts).

See yourself, we are doing very well to grow for 10 years without banks, so... On the contrary, sometimes (or often) it is the banks that prevent us in the use of cryptos for example when they prohibit the purchase and sale of cryptocurrency or when they limit our bank accounts...

[magneto]

The coordination between banking institutions and cryptocurrency is still uncertain. Crypto exchanges don’t believe in creating connections with banks to avoid losing their identity, though sometimes its appears that they are inseparable.

There is absolutely nothing that's stopping a bank from adopting bitcoin.

This is also a reason why I think the argument bitcoin will replace banks, or the fact that bitcoin is in direct competition with banks, is somewhat untrue. If bitcoin does somehow become the dominantly used currency across the world, it's unlikely that banks will simply go out of business, instead of adjusting their business model to denominate their services in bitcoin as well.

I personally think that it'll only be a matter of time before institutionalised adoption occurs, although, such adoption really has no net effect on the actual runnings of the bitcoin blockchain, since their business will mostly be conducted off the chain.

[rodel caling]

Because both are important in world community to help the economic growth of each country to resolve the poverty crisis parthnership of fiat and crypto are good ideas to help world economy.

[Snaic]

Cryptocurrency will not depend on banks. This statement is too categorical and unlikely to happen in reality. Banks and cryptocurrency will continue to exist on a mutually beneficial basis. However, this requires that the state first legalized cryptocurrency. This will be a good basis for their cooperation. It is unlikely that banks will provide such a multitude of services in cryptocurrency, which they provide in ordinary currency, but they will always exchange with fiat.