Why don't banks work with cryptocurrency?

[Koro-Sensei]

The main goal of cryptocurrency like BITCOIN is to escape from centralisation of institutions like this. Instead of having this middle brokers, cryptocurrency decentralised this transactions and not needing ledgers managed by banks rather crypto uses computers to verify this ledgers.

So why these banks doesn't work with crypto? Simply because banks aren't needed anymore. Cryptocurrency is killing them and you cant work with what's killing you.

[jostorres]

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.

In simple words, crypto takes control away from the banks and gives it back to the people. Banks always want control within their grasp and that is the sole reason why crypto is often seen as a threat to the banks.

Actually, it is near impossible for banks to work in tandem with bitcoins because if you read the whitepaper of BTC, and if I remember correctly, the sole intention to create crypto was to take control away from the banks because of the way they treat people and how much control they had.

Something meant to destroy or disrupt the banking sector cannot work with banks, obviously. And the banks do know it very well, they are just helpless because they cannot control it.

[VictorProsh]

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.

In simple words, crypto takes control away from the banks and gives it back to the people. Banks always want control within their grasp and that is the sole reason why crypto is often seen as a threat to the banks.

Actually, it is near impossible for banks to work in tandem with bitcoins because if you read the whitepaper of BTC, and if I remember correctly, the sole intention to create crypto was to take control away from the banks because of the way they treat people and how much control they had.

Something meant to destroy or disrupt the banking sector cannot work with banks, obviously. And the banks do know it very well, they are just helpless because they cannot control it.

How wrong you are! Control is always with those who have money and power. It is absolutely easy for banks to buy back and control all bitcoin. Who do you think whales and bears are if not bank tycoons playing through their brokers on the market?

[LUCKMCFLY]

I think everyone has valuable opinions regarding banks, and why not accept BTC in their systems, of course all part of a centralized system, how can you accept a decentralized system? Freedom, zero debt? But we all know that JP Morgan is very influential for the world of banks, in fact it owns the majority worldwide, it tests the technology with its own currency or stablecoin, it has made FUD to BTC, it has made FOMO to BTC, and finally I think it has been very opportunistic in the market and about its acceptance in the banking systems.

But unlike him, the president of El Salvador if he has accepted everything related to BTC, in their banking systems, payments, in everything, now in Miami they also want to establish it, then this is like: If you cannot against the enemy, join him.

The downside to all of this is that those who want to remain anonymous will find it completely impossible.

[Argoo]

The main goal of cryptocurrency like BITCOIN is to escape from centralisation of institutions like this. Instead of having this middle brokers, cryptocurrency decentralised this transactions and not needing ledgers managed by banks rather crypto uses computers to verify this ledgers.

So why these banks doesn't work with crypto? Simply because banks aren't needed anymore. Cryptocurrency is killing them and you cant work with what's killing you.

Cryptocurrency was created in opposition to the circulation of fiat money of states, and fiat is a product of the central banks of each state. Therefore, in general, cryptocurrency and banks will always compete with each other. This, of course, does not mean that there will be no points of contact between them. As a result, banks and cryptocurrencies will be forced to coexist with each other.

[uneng]

Traditional banks don't work with crypto currency, but things are changing fast and I believe we could already consider some investment platforms like Nexo, Celsius and Crypto.com as banks already, because they fully replaces traditional banking system with the advantage they let customers deal with crypto currencies of all kinds.
The only problem is that they don't give you the same guarantees a national bank would give. On the other hand, if we think deeply about it, even national banks can't guarantee your money will be safe, because they follow regulations from the government and if the government asks for customers' money (seizure), banks will concede it.

[MoneyJ]

Primary reason for this is the government regulation towards cryptocurrencies. Banks are fully aware of sanctions being thrown to institutions practicing unregulated form or medium of exchange. Unless they see concrete laws and guideline on how government would handle cryptocurrencies, Banks would not touch this.

[Shamm]

Banks did not accept any cryptocurrency because we all know that banks has a high standards about Money and cryptocurrency is a Volatile and they don't know if it is fake or not. But in reality Cryptocurrency is not fake you can buy any what you want using your cryptocurrency.

[Dragonfund]

Banks have the means of injecting large liquidity to market slowly without anyone just like the way SpaceX was silently buying and accumulating bitcoin until they later made announcements and then everyone jumped in for quick gains.
However, central frown at banks activities in bitcoin because they believe they are very important to the society and doesn't want them to risk customers saving into bitcoin or Cryptocurrency since there is high chance of loosing the money and the bank may be liquidated the moment they can provide cash to customers.

[AndySt]

Primary reason for this is the government regulation towards cryptocurrencies. Banks are fully aware of sanctions being thrown to institutions practicing unregulated form or medium of exchange. Unless they see concrete laws and guideline on how government would handle cryptocurrencies, Banks would not touch this.

I would say on the contrary, that the main reason for banks not working with cryptocurrencies is that the state does not regulate cryptocurrencies yet;) The banking sector is critical for the functioning of the economy in any state, so the state, represented by regulators, treats any innovations in this area with great caution and suspicion. Also, banking activities are strictly regulated by the state, and as you correctly noted, there is currently no sufficient regulatory framework in this area. Therefore, banks are not in a hurry to take initiatives in this area, because excessive initiative can be punishable here.

[Rajamuda]

Banks did not accept any cryptocurrency because we all know that banks has a high standards about Money and cryptocurrency is a Volatile and they don't know if it is fake or not. But in reality Cryptocurrency is not fake you can buy any what you want using your cryptocurrency.

They are still considering the risks that will be accepted from characteristics that have not been fully accepted by the banking system, so they are still opposed to being official in the bank. Something between the real and the unreal (not formed) could be the reason the bank still rejects it.

[Tina H]

Virtual currencies in some areas lack legal control, and the characteristic of cryptocurrency is that of peer-to-peer payment. From the bank's point of view, this will increase management costs.
Banks are always under the jurisdiction of the government, and banks will not choose to accept decentralized currencies without government approval.

[bakasabo]

I think that banks count cryptocurrency still a high risk asset. They are more afraid, that one day altcoins creator will perform an exit scam or will drop the price to zero, and the banks will have to cover all losses and negotiations with customer, instead of altcoins creator. There are no major support for crypto, compared with, for example, with US dollar. Who is behind US dollar ? Whole country. Who is behind dogecoin? No idea.

If I have $10,000 on my account, they cant just disappear or turn useless or crap. If I had 100,000 dogecoin on my bank account, there is a chance that one day they will become untransferable or useless. I will blame bank for that.

[VictorProsh]

I think that banks count cryptocurrency still a high risk asset. They are more afraid, that one day altcoins creator will perform an exit scam or will drop the price to zero, and the banks will have to cover all losses and negotiations with customer, instead of altcoins creator. There are no major support for crypto, compared with, for example, with US dollar. Who is behind US dollar ? Whole country. Who is behind dogecoin? No idea.

If I have $10,000 on my account, they cant just disappear or turn useless or crap. If I had 100,000 dogecoin on my bank account, there is a chance that one day they will become untransferable or useless. I will blame bank for that.

You are half right, not all cryptocurrencies are managed by the creator, for example, bitcoin, etherium, but banks do not work with them. You are right about one thing, banks are afraid of uncontrolled volatility and this is the main reason. When they develop a crypto currency that cannot be devalued under any circumstances, banks will be the first to capture the entire crypto market. For example

http://prosh.info/smart_eng.html

[conected]

Primary reason for this is the government regulation towards cryptocurrencies. Banks are fully aware of sanctions being thrown to institutions practicing unregulated form or medium of exchange. Unless they see concrete laws and guideline on how government would handle cryptocurrencies, Banks would not touch this.

- When banks do not report, government sanctions are meaningless and I can say that every year, government organizations probably receive relatively large amounts of money from banks, punishment is sometimes just a valid piece of paper and does not affect the operation of the bank but openly working with non-regulated assets will get mixed reviews. Therefore, most banks are very strict with their organizational principles, do not arbitrarily work with crypto but voluntarily act as intermediaries.

[shogun47]

Primary reason for this is the government regulation towards cryptocurrencies. Banks are fully aware of sanctions being thrown to institutions practicing unregulated form or medium of exchange. Unless they see concrete laws and guideline on how government would handle cryptocurrencies, Banks would not touch this.

It is just what you say. It is highly dependent on the country you are living in, but in many countries there are laws that prohibit banks from dealing with unregulated assets, whatever that may be. In several European countries banks even froze accounts during the early Bitcoin days just because someone received money from someone else for selling Bitcoin on an exchange. That is no problem anymore and the banks I know allow for Bitcoin trading and sending and receiving fiat via their accounts for Bitcoin related activities.

Banks holding crypto themselves and even transacting with it is becoming more and more popular. Although platforms like Corda show that banks are interested in co-developing the platform they are ultimately going to use. Ripple also always worked very closely with banks. Whether they ever will be using Bitcoin on a large scale, I don't know.

[oHnK]

Primary reason for this is the government regulation towards cryptocurrencies. Banks are fully aware of sanctions being thrown to institutions practicing unregulated form or medium of exchange. Unless they see concrete laws and guideline on how government would handle cryptocurrencies, Banks would not touch this.

It is just what you say. It is highly dependent on the country you are living in, but in many countries there are laws that prohibit banks from dealing with unregulated assets, whatever that may be. In several European countries banks even froze accounts during the early Bitcoin days just because someone received money from someone else for selling Bitcoin on an exchange. That is no problem anymore and the banks I know allow for Bitcoin trading and sending and receiving fiat via their accounts for Bitcoin related activities.

Banks holding crypto themselves and even transacting with it is becoming more and more popular. Although platforms like Corda show that banks are interested in co-developing the platform they are ultimately going to use. Ripple also always worked very closely with banks. Whether they ever will be using Bitcoin on a large scale, I don't know.

My wild mind says that they don't want to deal with assets that are easy to bubble just because of a pump, I myself said it would be very difficult for Crypto to be trusted to become a legal transaction tool in all countries because of the concept it has.  How can the government want to relinquish their authority in managing fiat while in crypto there is no centralization of currency in crypto.  All are free without interference from the central bank and any country.

[VictorProsh]

The bank works by circulating their money. I think it would be hard for Cryptocurrency to do that.
The price is volatile, so investors, lenders, and borrowers would have difficulty adjusting to the system.

Until a decentralized stable coin appears on the crypto market, banks will not invest their assets in cryptocurrency.

[Sithara007]

LOL.. why should the banks work with one of their competitors? It is like saying that Coke should distribute Pepsi in their corporate office. One of the basic concepts of Bitcoin is to avoid storage of money by third parties. If you have some coins, then you can store them by yourselves by creating a wallet. You don't need the help from a third party like bank. And this is an existential threat to the banks. If people can store their money by themselves and can transact them as they like, then why should they be dependent on the banks?

[VictorProsh]

LOL.. why should the banks work with one of their competitors? It is like saying that Coke should distribute Pepsi in their corporate office. One of the basic concepts of Bitcoin is to avoid storage of money by third parties. If you have some coins, then you can store them by yourselves by creating a wallet. You don't need the help from a third party like bank. And this is an existential threat to the banks. If people can store their money by themselves and can transact them as they like, then why should they be dependent on the banks?

Strange people. Are you going to give out loans to yourself in the place of the bank, charge yourself interest for storing in your wallet?