Why don't banks work with cryptocurrency?

[noorman0]

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.

Before starting this project, you should have a strong banking background yourself to create ideas that are not against regulations.

Back to the subject title... Why don't you ask the bank itself? It is not the independent desire of bankers to want to update their financial systems, but regulations still regulate them or they are not allowed to operate. You need to keep in mind that there are several points in blockchain technology that contradict how banks work.

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[1l1l11ll1l]

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.

The simple thing is because banks use a centralized tied system, where banks are too tied to government regulations, while crypto offers blockchain technology which is a decentralized system. it is certainly the opposite and it may be difficult to implement blockchain in such a complex system

[VictorProsh]

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.

Before starting this project, you should have a strong banking background yourself to create ideas that are not against regulations.

Back to the subject title... Why don't you ask the bank itself? It is not the independent desire of bankers to want to update their financial systems, but regulations still regulate them or they are not allowed to operate. You need to keep in mind that there are several points in blockchain technology that contradict how banks work.

The main functions of banks:
• attraction (accumulation) of funds and their transformation into loan capital;
• stimulating the savings of depositors;
• loan mediation;
• intermediation in payments;
• creation of credit instruments of circulation;
• mediation in the stock market (in transactions with securities);
Which of these features does my project contradict?

[AicecreaME]

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.

I agree. One of cryptocurrencies' nature is being volatile. I think its volatility rate is one of the major reasons why banks don't want crypto on their platform. With one major drop, their generated profits has a high possibility to become losses. The frequent price fluctuation of cryptocurrencies is just another whole new level of challenge for them if ever they will risk their chance on it. You know, central organizations are still businesses after all. That's why i totally understand why most of them are really aloof with the idea of adopting cryptocurrency.

In addition, government permission also plays a great role. Banks need it in order for them to adopt it without violating the set of policies and regulations. If the government will continue to tighten their grip on cryptocurrency, banks will really have a hard time accepting it on their platform since the higher authorities are still unfavor of it.

[adzino]

Why would banks want to work with a decentralized system? Wait, more importantly, why would we want decentralized currency to work with the banks? Banks are centralized institution controlled by the government. If banks starts working with bitcoin, and you join them, then you will no longer have the "power of decentralization". People like bitcoin because they can send it instantly from one place to another without any third-party interference and according to their own will. That won't be possible if you do it through banks. Moreover, the bitcoins will be no longer yours since you won't own the keys. Banks will be the owner of the coins and you may lose your access to the coins anytime.

[pinggoki]

Why would banks want to work with a decentralized system? Wait, more importantly, why would we want decentralized currency to work with the banks? Banks are centralized institution controlled by the government. If banks starts working with bitcoin, and you join them, then you will no longer have the "power of decentralization". People like bitcoin because they can send it instantly from one place to another without any third-party interference and according to their own will. That won't be possible if you do it through banks. Moreover, the bitcoins will be no longer yours since you won't own the keys. Banks will be the owner of the coins and you may lose your access to the coins anytime.

That's right! Banks are centralized wherein it is supported by the government while Bitcoin or cryptocurrency are not supported by many banks and if cryptocurrency works with the bank then probably cryptocurrency will become centralized also and the so-called decentralized cryptocurrency will be no more. Banks are using 3rd party interference and that's also another factor why people are having fun and enjoying using bitcoin because by just using addresses they can transfer funds anytime they want.

[LogitechMouse]

Crypto and banks have one very big difference and that is their structure itself.
Banks are centralized while crypto is decentralized. This itself is enough explanation as to why they aren't working with each other.

Banks are often used as a third party whenever there is a transaction from Person A to Person B. With crypto, banks isn't needed because they can just transfer without them. With this, the revenue or profit of the banks will be affected heavily thus they don't want cryptocurrency. One thing more is that they can't control it that is why they don't want it.

[VictorProsh]

Crypto and banks have one very big difference and that is their structure itself.
Banks are centralized while crypto is decentralized. This itself is enough explanation as to why they aren't working with each other.

Banks are often used as a third party whenever there is a transaction from Person A to Person B. With crypto, banks isn't needed because they can just transfer without them. With this, the revenue or profit of the banks will be affected heavily thus they don't want cryptocurrency. One thing more is that they can't control it that is why they don't want it.

The main functions of banks:
• attraction (accumulation) of funds and their transformation into loan capital;
• stimulating the savings of depositors;
• loan mediation;
• intermediation in payments;
• creation of credit instruments of circulation;
• mediation in the stock market (in transactions with securities);
who will deal with these functions in cryptocurrency if not a bank, you? In fact, the bank itself will transform its paper wrappers into cryptocurrency, this is inevitable.

[conected]

Why would banks want to work with a decentralized system? Wait, more importantly, why would we want decentralized currency to work with the banks? Banks are centralized institution controlled by the government. If banks starts working with bitcoin, and you join them, then you will no longer have the "power of decentralization". People like bitcoin because they can send it instantly from one place to another without any third-party interference and according to their own will. That won't be possible if you do it through banks. Moreover, the bitcoins will be no longer yours since you won't own the keys. Banks will be the owner of the coins and you may lose your access to the coins anytime.

- In this case, banks sometimes still allow us to continue to access but our incomes will be partially taxed and remember products with high profits will be heavily taxed, I don't believe that many people like to go public and give up a large portion of profits with a meaningless partnership with a bank while the good meaning of the product is about decentralization and personal control. Instead of that directly, we can always indirectly link crypto to the bank through online marketplaces and transactions, the two have worked together on the basis of anonymity.

[AndySt]

Crypto and banks have one very big difference and that is their structure itself.
Banks are centralized while crypto is decentralized. This itself is enough explanation as to why they aren't working with each other.
Banks are often used as a third party whenever there is a transaction from Person A to Person B. With crypto, banks isn't needed because they can just transfer without them. With this, the revenue or profit of the banks will be affected heavily thus they don't want cryptocurrency. One thing more is that they can't control it that is why they don't want it.

The activity of banks is not limited to just mediation in transactions between person A and B, and this should not be the basis of their activities. Banks are enterprises that, instead of producing goods, are engaged in accumulating money, and then extracting profit from it. The interests of banks and cryptocurrencies may not coincide in some ways, but there are no cardinal contradictions between banks and cryptocurrencies. Everything depends on the further actions of financial regulators in different countries. For example, Chinese regulators prohibit their financial organizations from dealing with cryptocurrencies.

[noorman0]

-snip-
Which of these features does my project contradict?

What you mention are just general banking features that are known to the public. I ask again, what is the actual mechanism for the bank to implement them? Are you sure there is no "secret system" behind it? Studying it is not enough just to consult an ordinary bank employee who has a limited level of knowledge. You have to take other approaches including "insider".

Simply put, we know that blockchain is a brilliant idea and was created 11 years ago, but why haven't banks adopted it yet if you think a change is needed? What's the problem?
I sm sure that your ideas have been thought of by others before you.

[VictorProsh]

-snip-
Which of these features does my project contradict?

What you mention are just general banking features that are known to the public. I ask again, what is the actual mechanism for the bank to implement them? Are you sure there is no "secret system" behind it? Studying it is not enough just to consult an ordinary bank employee who has a limited level of knowledge. You have to take other approaches including "insider".

Simply put, we know that blockchain is a brilliant idea and was created 11 years ago, but why haven't banks adopted it yet if you think a change is needed? What's the problem?
I sm sure that your ideas have been thought of by others before you.

I swami agree that these ideas were worked out before me, but that is the question: all DeFi constructions are based on the monetary system of the dollar (Fiat) and are tied to it. I suggest something else:
What's the point of Stablecoins pegged to the dollar or any Fiat currency if you can print as many as you like? It is necessary, on the contrary, that the emission of Fiat depends on the total real volume of the decentralized world economy, and not on the whim of the local authorities, but these are my illiterate fantasies, ignorant.
Now, with regard to the functions of the bank, if due to the ban, other financial institutions in the form of various funds, insurance companies and, finally, stock exchanges will not be able to fulfill them, the holy place is never empty.

[livingfree]

But, we already have exchanges? Exchanges can do everything that you would want to do with banks these days, and some of them even go to the extent of offering card services to their customers, so that they will be able to make withdrawals with their cryptocurrency cards and also make purchases online.

That's right, a lot of exchanges have already offered card services since a few years ago.

If banks should start working with cryptocurrency, it is still the same thing that exchanges are doing that they are going to be doing, so I don’t see the need for it. There are a lot of things that banks has to be focused on and I don’t think that trading cryptocurrency should be one of it lol.

There's no need for it but the banks are free to move and adopt whichever they think is beneficial for them. If they want to add a crypto service then that's going to happen but are there many of their customers going to take it? likely.

[wiss19]

But, we already have exchanges? Exchanges can do everything that you would want to do with banks these days, and some of them even go to the extent of offering card services to their customers, so that they will be able to make withdrawals with their cryptocurrency cards and also make purchases online.

If banks should start working with cryptocurrency, it is still the same thing that exchanges are doing that they are going to be doing, so I don’t see the need for it. There are a lot of things that banks has to be focused on and I don’t think that trading cryptocurrency should be one of it lol.

[sana54210]

Gradual progress man, obviously it is not at the peak point right now but the adoption for bitcoin grown so much every year, it is going to be more and more places accepting bitcoin and eventually it is going to be easily in the banks. Let me remind everyone that in USA there are tons of weed business', they are not illegal because in some states weed is legal, in some its legal with prescription and in some its fully legal without any prescription at all, of course I am not talking about weed dealers, they are always illegal if you are not going through the right due process, but there are tons of weed dispensary in those states that gets checked constantly and sell some good weed that is very legal.

None of them use banks, NONE, you know why? Federal law says that you have to be in a business that is allowed in all states, or you would have to not use a bank at all, banks can't accept their money because it would be illegal money in other states that bank works. That is why we are seeing uptick in state only banks in legal weed states as well. This is 2021, we literally have banks not accepting fiat for this reason, so no worries on crypto just yet.

[nakamura12]

It's because cryptocurrency is decentralized and they need to make a platform where they can make it centralized or they can make money out of it. I have known a wallet/exchange that is regulated by the bank in my country and they did make money out of it. The only problem is that people doesn't have full access of the wallet(decentralized wallet) information but you have full control of your funds.

[inoes]

"Banks strictly prohibit financial institutions in Indonesia from using cryptocurrencies because this digital currency is not a legal tender"
 That's more or less the main answer to all questions apart from fluctuations, fomo, gambling, anonymity, Blockchain and regulation.  Is it possible to create a cryptocurrency currency for each country?  That is possible if agreed by the United Nations such as the IMF and WB.  then all will follow it

[VictorProsh]

It's because cryptocurrency is decentralized and they need to make a platform where they can make it centralized or they can make money out of it. I have known a wallet/exchange that is regulated by the bank in my country and they did make money out of it. The only problem is that people doesn't have full access of the wallet(decentralized wallet) information but you have full control of your funds.

You have hit the spot. Everything that others said before you was also correct from the point of view of the existing monetary system. The future decentralized financial system will unite everyone on the basis of an independent assessment of the existing monetary in the transition to decentralization. What I mean.

In solving this problem, I took as an example the existing US financial system.
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 the Securities of the US Treasury, we get a financial model of a new decentralized economic system based on cryptocurrency. I implemented all this in my project, in contrast to the existing Fiat, it completely lacks an external emission regulator and is managed by the smart contract program.
http://prosh.info/smartcontract.html

In the near future, both systems will exist.
1. Monetary (domestic for each country)
2. Decentralized, external, combining all internal balances of GDP into a decentralized world GDP, which will be the measure of the world economy.

[Rexler]

Well i think the more reason why the banks don't work with cryptocurrency is because there see crypto as a threat to their banking system, crypto solves alot of problems in the banking system in which this makes banks feel crypto will take all of their customers and instead of them to accept the facts that crypto is good enough when it comes to transaction across countries there discriminate crypto and only talks about the bad side of crypto without looking out for the advantages involved.

[VictorProsh]

10,000 Financial Institutions Can Now Let Customers Buy, Sell, Hold Bitcoin Through Their Bank Accounts
https://news.bitcoin.com/10000-financial-institutions-customers-buy-sell-hold-bitcoin-bank-accounts/