Why don't banks work with cryptocurrency?

[Fatunad]

People do not know but actualy they are working with crypto specially with EFT's and since 2017 we all know central banks interest with blockchain even some central banks was working with ripple but idk what happened. So My opinion is since 2025 Those interests will be more solid.

Blockchain doesnt totally mean that it would really be considered to be totally opposing banks or centralization because it would rather be helpful and beneficial when it comes to transactions although it would be all
transparent and could be seen on the blockchain which basically means that there would be no transactions that could be hidden neither doing some inbound or outbound transactions and this is where some
institutions doesnt really prefer on adopting it specially with banks.Hate to say but centralized things would totally not like decentralized ones .
Lets see on how long they would really be waiting up for it to be considered.

[rosebrand]

There are just too many reasons to why banks dislike bitcoin, firstly take not that bank is a regulated entity and won't love to work with an anonymous asset, secondly there are being fed with taught of bitcoin filled with many illicit activities like money laundering, illegal transfer of funds etc, just too many to mention but the early there get to see the importance of bitcoin the good for them, the fact here is bitcoin can be used for both good and bad, it all depends on the individual.

[wahyu wida]

There are just too many reasons to why banks dislike bitcoin, firstly take not that bank is a regulated entity and won't love to work with an anonymous asset, secondly there are being fed with taught of bitcoin filled with many illicit activities like money laundering, illegal transfer of funds etc, just too many to mention but the early there get to see the importance of bitcoin the good for them, the fact here is bitcoin can be used for both good and bad, it all depends on the individual.

The negative interest that is always highlighted from bitcoin not being usable can actually also be overcome by the government. but it is a government regulation that cannot be violated so that banks still use the conventional method. Actually, even though anonymous can be seen, the last transaction to be converted to fiat money must have an identity listed, so I don't think it's purely anonymous either

[nicecrypto]

They can't, crypto isn't a stable asset it's highly volatility and far different from money, it's going to be hard to see crypto and medium of exchange really because the volatile part doesn't guarantee anything

In all, I believe that is the major issue cryptocurrencies have when it comes to seeing it as a means of exchange and on a positive note, why people are more into crypto. If there was no volatility in crypto, there wouldn't be the king of profits that investors get from it and wouldn't have been investing in it that much. So, what is a positive for crypto investors is what makes it difficult as a means for exchange hence, it is different from money.

Yes, it's one issue to the banks.

A highly volatile asset can't be accepted by them and most of the banks aren't really looking forward in adopting cryptocurrencies with their services.

But there might be some open-minded banking management that shall adopt this soon in the future. The crypto market is showing unstoppable potential and growth so they won't ignore it.

Yeah but I believe as it is now, some Banks are offering their customers cryptocurrency investment in some countries already like in the US.
 
Wells Fargo: US bank set to offer crypto fund to rich clients

I also believe that other banks in the US are doing a similar thing

Bitcoin is coming to hundreds of U.S. banks this year, says crypto custody firm NYDIG]

Bitcoin as far as it is now is becoming inevitable and sooner than later most individuals and institutions will have to jump on it.

[sisikin]

If the bank uses cryptocurrency, it means that cryptocurrency no longer has anonymity, and every transaction will be recorded.
The advantages of cryptocurrency p2p will not exist. There is also the existence of a third party.

[bengsabeng]

There are just too many reasons to why banks dislike bitcoin, firstly take not that bank is a regulated entity and won't love to work with an anonymous asset, secondly there are being fed with taught of bitcoin filled with many illicit activities like money laundering, illegal transfer of funds etc, just too many to mention but the early there get to see the importance of bitcoin the good for them, the fact here is bitcoin can be used for both good and bad, it all depends on the individual.

actually all the negative things can be avoided if the government regulates bitcoin ownership. all these bad things happen because there are no clear rules regarding bitcoin so that anyone is free to buy and use bitcoin. each country must strictly monitor the circulation of bitcoins so that suspicious transactions can be detected and reduce the adverse effects of bitcoin circulation.

[Semar Mesem]

If the bank uses cryptocurrency, it means that cryptocurrency no longer has anonymity, and every transaction will be recorded.
The advantages of cryptocurrency p2p will not exist. There is also the existence of a third party.

Banks and crypto are difficult things to put together, if banks accept crypto then their function can only be like exchanges which of course is nothing new, maybe the best way is for banks to make crypto as a product but the risk of profit or loss of course cannot be controlled.

[awik p]

If the bank uses cryptocurrency, it means that cryptocurrency no longer has anonymity, and every transaction will be recorded.
The advantages of cryptocurrency p2p will not exist. There is also the existence of a third party.

Banks and crypto are difficult things to put together, if banks accept crypto then their function can only be like exchanges which of course is nothing new, maybe the best way is for banks to make crypto as a product but the risk of profit or loss of course cannot be controlled.

I agree, where banks can make crypto as their product, where this is like saving money but has a legal umbrella, but unfortunately at this time there is no such program. maybe for the first time that banks can use is a blockchain that has many benefits. and this is inseparable from the role of the government which will provide policy, because we know that banks are under the control of the government

[conected]

There are just too many reasons to why banks dislike bitcoin, firstly take not that bank is a regulated entity and won't love to work with an anonymous asset, secondly there are being fed with taught of bitcoin filled with many illicit activities like money laundering, illegal transfer of funds etc, just too many to mention but the early there get to see the importance of bitcoin the good for them, the fact here is bitcoin can be used for both good and bad, it all depends on the individual.

- Banks are also not a legal environment as you think, there are some money laundering activities from businesses that are supported by banks, the problem is just an outlawed agreement between organizations, the rate of profit as well as the level of risk avoidance, the bank only works for the top institutions in such a style, in return for a long-term cooperation. The coroner also couldn't verify, the numbers were changed too small and faked too much, sometimes crypto is also a little corner of their office with secret numbers

[dezoel]

Banks could definitely may have a problem and that is going to be the main thing. If the banks are very happy about it, then it is the future of where crypto will be going, and that’s great, we could definitely end up being 1+ million dollars. However at the same time, if we are going to end up seeing banks doing bad things and trying to prevent crypto then that is going to be a horrible thing as well.

This is just how the situation is right now, we may or may not see something good with crypto and that is the trouble depending on banks. I have seen a lot of people from banks saying bad things, I have seen many hedge fund level bank related stuff end up getting into bitcoin as well, I have seen both sides. However, there is a wider bigger banking world when they get together and decide on something and this means that we may get a bad or a good result from that.

[South Park]

They can't, crypto isn't a stable asset it's highly volatility and far different from money, it's going to be hard to see crypto and medium of exchange really because the volatile part doesn't guarantee anything

In all, I believe that is the major issue cryptocurrencies have when it comes to seeing it as a means of exchange and on a positive note, why people are more into crypto. If there was no volatility in crypto, there wouldn't be the king of profits that investors get from it and wouldn't have been investing in it that much. So, what is a positive for crypto investors is what makes it difficult as a means for exchange hence, it is different from money.

Yes, it's one issue to the banks.

A highly volatile asset can't be accepted by them and most of the banks aren't really looking forward in adopting cryptocurrencies with their services.

But there might be some open-minded banking management that shall adopt this soon in the future. The crypto market is showing unstoppable potential and growth so they won't ignore it.

If bitcoin was anything other than a currency you can be sure that they would have adopted bitcoin already as it is widely known that banks have no problem investing in all kind of speculative assets as long as there is the potential to make a lot of money, the problem is that bitcoin is a direct competitor to their business, and not only it is a competitor it is probably the biggest competitor that they had to face during the last centuries and they do not like this one bit.

[tiCeR]

They can't, crypto isn't a stable asset it's highly volatility and far different from money, it's going to be hard to see crypto and medium of exchange really because the volatile part doesn't guarantee anything

In all, I believe that is the major issue cryptocurrencies have when it comes to seeing it as a means of exchange and on a positive note, why people are more into crypto. If there was no volatility in crypto, there wouldn't be the king of profits that investors get from it and wouldn't have been investing in it that much. So, what is a positive for crypto investors is what makes it difficult as a means for exchange hence, it is different from money.

Yes, it's one issue to the banks.

A highly volatile asset can't be accepted by them and most of the banks aren't really looking forward in adopting cryptocurrencies with their services.

But there might be some open-minded banking management that shall adopt this soon in the future. The crypto market is showing unstoppable potential and growth so they won't ignore it.

If bitcoin was anything other than a currency you can be sure that they would have adopted bitcoin already as it is widely known that banks have no problem investing in all kind of speculative assets as long as there is the potential to make a lot of money, the problem is that bitcoin is a direct competitor to their business, and not only it is a competitor it is probably the biggest competitor that they had to face during the last centuries and they do not like this one bit.

The difference being with Bitcoin that banks are not the ones who earn a fee from every single transaction being made on the Bitcoin network. Earnings from transaction fees in the banking system are the easiest earnings you can make. It is all automated and you just let it run and take a cut every single time someone makes a payment. They don't have that guaranteed income anymore if a currency like Bitcoin would overtake that role and destroy that business branch for banks. Not that banks make most money with transaction fees, but as I said it is the easiest money they are making by far. They also have less data available if their customers use Bitcoin instead of their own bank accounts. That's again something banks want to avoid.

[South Park]

They can't, crypto isn't a stable asset it's highly volatility and far different from money, it's going to be hard to see crypto and medium of exchange really because the volatile part doesn't guarantee anything

In all, I believe that is the major issue cryptocurrencies have when it comes to seeing it as a means of exchange and on a positive note, why people are more into crypto. If there was no volatility in crypto, there wouldn't be the king of profits that investors get from it and wouldn't have been investing in it that much. So, what is a positive for crypto investors is what makes it difficult as a means for exchange hence, it is different from money.

Yes, it's one issue to the banks.

A highly volatile asset can't be accepted by them and most of the banks aren't really looking forward in adopting cryptocurrencies with their services.

But there might be some open-minded banking management that shall adopt this soon in the future. The crypto market is showing unstoppable potential and growth so they won't ignore it.

If bitcoin was anything other than a currency you can be sure that they would have adopted bitcoin already as it is widely known that banks have no problem investing in all kind of speculative assets as long as there is the potential to make a lot of money, the problem is that bitcoin is a direct competitor to their business, and not only it is a competitor it is probably the biggest competitor that they had to face during the last centuries and they do not like this one bit.

The difference being with Bitcoin that banks are not the ones who earn a fee from every single transaction being made on the Bitcoin network. Earnings from transaction fees in the banking system are the easiest earnings you can make. It is all automated and you just let it run and take a cut every single time someone makes a payment. They don't have that guaranteed income anymore if a currency like Bitcoin would overtake that role and destroy that business branch for banks. Not that banks make most money with transaction fees, but as I said it is the easiest money they are making by far. They also have less data available if their customers use Bitcoin instead of their own bank accounts. That's again something banks want to avoid.

That is without a doubt a problem for them, after all it is almost as if they receive free money out of those transactions and not only that banks charge you a fee that depends on the amount of money that you are sending so the fee can be very high if you are sending an amount of money that is very high, but when it comes to bitcoin the fee depends on the size of the transaction and how long you can wait for it to be confirmed which means that someone can send a fortune and pay very little in fees.

[Princejebs]

My instinct is telling me that some of the banks may partially be working with cryptocurrency, they might not bring it to the table for everyone to see but some might be trading anonymously.

I have the feeling that they are in but since they know is risky, they wouldn't disclose it to the public especially when they know that central banks will harm their reputation.
Sometime before the ban of bitcoin in my country, some bank workers were expelled for risking and using customers money to buy bitcoin and after the last collapse, they couldn't balance sheet the money they took for investment.

[Mahanton]

My instinct is telling me that some of the banks may partially be working with cryptocurrency, they might not bring it to the table for everyone to see but some might be trading anonymously.

I have the feeling that they are in but since they know is risky, they wouldn't disclose it to the public especially when they know that central banks will harm their reputation.
Sometime before the ban of bitcoin in my country, some bank workers were expelled for risking and using customers money to buy bitcoin and after the last collapse, they couldn't balance sheet the money they took for investment.

Most of the time banksters would really be hating up Bitcoin or crypto generally due to its characteristics which is totally opposing centralization so its no brainer that they would really be hating crypto
wont tending to make out some integration in terms of payment system but talking individually then we dont know that theyre accumulating silently specially to those whom do see that it could really
have the potential to make profits and not really minding about on what would others said but its just dumb that they would really be making it obvious.Everything would really be silent
in terms of accumulations even though its not proven but its likely that it is happening behind.

[Freezingel]

All your statements sound true and so reasonable. Of course banks don't want to have anything to do with cryptocurrency, especially this thing can actually be such a great threat for their existence. Other than that, cryptocurrency is really hard to control, and really risky as well compared to fiat, of course they don't want to take the risk and prefer to play safe, stay in their comfort zone that has been going for years.

[Abiky]

There is a logical explanation for this.
First, the volatility inherent in digital assets. The fact is that the main goal of every bank is to make a profit. The slightest fluctuation in the cryptocurrency market increases the risk of reducing all projected profits to zero. Today, cryptocurrency is showing a certain stability, but even despite these indicators, most financial institutions still prefer to provide traditional banking services for corporate clients, whose activities they understand.

Decentralized Cryptocurrency is not controlled or limited by anyone alone, there is no single administrator and regulator. Not a single financial, tax, government organization can influence the actions of participants in the payment system.
Ethereum is a multifunctional virtual platform on which blockchain-based applications (online services) are created. Applications work as "smart contracts (smart contracts)" that exclude third parties (intermediaries) in the transaction process. On their basis, it is possible to create a platform that will stimulate banks to lend against the security of cryptocurrency without fear of losses, and this, in turn, will interest the financial sector to place its assets in cryptocurrency?

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/smart_eng.html

The main reason why banks don't work with crypto, it's because decentralization goes against what they believe in. Fiat is centralized and heavily manipulated by banks, while that's not the case with crypto. Something banks can't control will be considered a "target" to them. Some banks are offering crypto services in order to gain a piece of the pie. But the vast majority of them are skeptical because of reasons mentioned earlier. I'd prefer banks to stay away from crypto, as they could harm the decentralization of the Blockchain in the long run. As long as decentralization prevails, people will have an "escape route" from the current monetary system subject to manipulation, fraud, and corruption. With how everything's been going lately, it seems that crypto and banks (Fiat) will co-exist for many generations. Just my opinion

[South Park]

All your statements sound true and so reasonable. Of course banks don't want to have anything to do with cryptocurrency, especially this thing can actually be such a great threat for their existence. Other than that, cryptocurrency is really hard to control, and really risky as well compared to fiat, of course they don't want to take the risk and prefer to play safe, stay in their comfort zone that has been going for years.

This is not exactly accurate, banks love risk and because they are necessary for the economy to work if they take a risk and they lose then the government needs to rescue them as they are too big to fail, so it does not mater what they do they win, but they do not like bitcoin at all because they can see that bitcoin is a direct competitor and they see as well they cannot destroy it, so they are doing the best they can at the moment to slow down the adoption of bitcoin until they can figure out a plan to destroy it completely.

[bryant.coleman]

This is not exactly accurate, banks love risk and because they are necessary for the economy to work if they take a risk and they lose then the government needs to rescue them as they are too big to fail, so it does not mater what they do they win, but they do not like bitcoin at all because they can see that bitcoin is a direct competitor and they see as well they cannot destroy it, so they are doing the best they can at the moment to slow down the adoption of bitcoin until they can figure out a plan to destroy it completely.

Makes sense. Credit cards and payment gateways represent a major source of revenue for the banks. If cryptocurrency becomes a popular mode of payment, then it will make credit cards obsolete. The banks definitely don't want this. But at the same time, the banks can benefit from cryptocurrency if they integrate it to their platform. Look at PayPal. They posted record profits this year, after accepting Bitcoin for the first time in 2020. The difference between mainstream banks and PayPal is that the latter looked for a mutually beneficial method where both the sides benefit in the end.

[mckinleeanael07]

because banks always hate cryptocurrencies and think that electronic money is an unclear kind of money roughly "black money" for money laundering criminals so banks and laws in many places are still elusive. Concerned about the long-term viability of BTC, because BTC has no stable value and at any moment it will burst like a bubble.