Why don't banks work with cryptocurrency?

[michellee]

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

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

[tyz]

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

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

[imstillthebest]

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

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

[dezoel]

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

[AndySt]

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

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

[arallmuus]

banks are not afraid but they want crypto become regulated by them .  if there are afraid that would be us people because we dont want cryptos to be regulated

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

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

[Vishnu.Reang]

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

[FanEagle]

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

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

[wxa7115]

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

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

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

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

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

[S4VV4S]

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

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

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

[VictorProsh]

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

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

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

[carlfebz2]

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

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

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

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

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

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

[bocyaj]

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

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

[sumant]

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

[amishmanish]

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

I have been working on this idea for three years.
If this project existed now, then the current correction in the market would allow ETH to overtake Bitcoin in capitalization.
You are the first to read it, everyone reads only the headings.

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

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

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

[Kong Hey Pakboy]

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

[VictorProsh]

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

I have been working on this idea for three years.
If this project existed now, then the current correction in the market would allow ETH to overtake Bitcoin in capitalization.
You are the first to read it, everyone reads only the headings.

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

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

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

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

[judaspriest]

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

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

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

[ven7net]

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

[VictorProsh]

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

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