Why don't banks work with cryptocurrency?

[Wawa2013]

Banks require KYC for every client which is in fact it's a contrary to Bitcoin's nature of being anonymous, which seems to be a good advantage for the Banks as they can regulate the distribution of Crypto in the Market as I see it. But! Since Bitcoin is not relatively accepted by a Government, there are some who would tag it as Illegal, legal and neutral so technically that's one of the reasons why banks wouldn't want to handle Crypto since there's Rules or Laws that applies in the regulation of Bitcoin. Plus, the volatility of Bitcoin itself is quite alarming for the banks.

The main reason banks don't accept crypto transactions is usually related to legal issues, because not all countries legalize crypto as a means of
payment. There are even countries that prohibit crypto and consider crypto illegal, because after all banks are under government control,
so they have to follow government rules. Moreover, like you said banks have different rules with crypto, and also the volatile crypto prices make it
difficult for banks and crypto to work together. In the end most countries in the world legalize crypto only as a digital asset, and because of that
banks cannot accept cryptocurrencies.

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1715421598

[chrisculanag]

For me is because the price of the crypto is not stable,it can also affect the profit of the bank thats not good in their side.I think someday many banks accept cryptocurrencies for many transaction but in legal process.

[geegaw]

In my own opinion, most of the banks are seeing cryptocurrency as a threat to their financial system. It’s because people are preferring more of a system that gives them full custody of their assets and transferring it from one account to the other without borders. This is what the banks are concerned, because people will be turning to crypto than saving more money in their bank accounts.

As the old saying goes, “Not your keys, not your coins.”

I don’t save much money in banks right now, as most of my savings are in crypto.

I think so. Most banks in the world do not like cryptocurrencies, they always see it as an enemy, which can cause bad influence. The crypto market is growing, the value is increasing, many people will invest in it instead of depositing their savings in the bank. I guess that's the main reason they don't work with cryptocurrencies

Human psychology is magical and the result should surprise you, many people still prefer low interest rates from savings in the bank, even if they have investments in crypto, a part of the income is also transferred directly to the bank account, the bank has never lacked customers for their savings packages. Bonds and gold as well as the value of corporate stocks, it also has a certain ratio that makes people feel no longer close to the bank but banks still know that successful professionals are few in number, losers will soon know the bank is the best home for them, not working with crypto are probably more obscure and undisclosed causes

[izsara]

Most banks within the world look down on cryptocurrencies and can't control cryptocurrencies. there's more profit in crypto than saving in bank. If banks introduce crypto all people will save in crypto banks will suffer. i prefer to store in crypto because the value of crypto keeps increasing. Savings in banks will remain in one place but thanks to crypto volatility the quantity of savings increases because the value of currencies increases. the govt considers crypto an enormous threat.

instead of saying low words I might say that even if banks want to cooperate with crypto it will not work well because their systems are very different and cannot be combined with one another.
when the bank establishes a centralized system, it will be inversely proportional to crypto which does have a decentralized system.
it's so overlapping if they work together

[alpamar99]

there are several reasons why they don't cooperate and seem unwilling to think of bitcoin as existing.
apart from the memag system and the way they do it differently where bitcoin is decentralized and banks are centralized, banks also I think have something that makes bitcoin undesirable.
one of them is that when maybe the bank will cooperate with bitcoin, it means that bitcoin's right is something that is legal in the government and automatically people will have a choice of medium of exchange to support their lives and when doing something like this I think it will make the bank lose trust public.
besides that banks will also lose control over the currency used by their people because indeed when they are already using bitcoin when they see the amount and the transaction cannot be manipulated by anyone, they cannot control everything that is usually done at the bank.

[MNbag]

They do.

https://markets.businessinsider.com/news/currencies/13-top-banks-investing-cryptocurrency-blockchain-technology-funding-blockdata-bitcoin-2021-8

A lot, over $1 billion invested by 13 banks.

These banks are names like Morgan Stanley.

If it has a pulse and a credit card, banks will invest in it.

[Rufsilf]

Simply because cryptocurrencies makes the banks obsolete, and bitcoin is a decentralized currency that no one controls it while the banks are a centralized currency that keeps track of every transactions in a ledger and make profits from it. And why would a bank work with crypto when they cannot be the middle man for every transactions that have been made on crypto and bank can't profit in any ways.

I found a video on youtube that explains why do banks hate or don't work with cryptocurrencies.

https://youtu.be/1Y7oHdnHssY

[developeron29]

Simple, They lose control.. as government cannot control it.. as everything is anonymous in the end

[perryxi2]

Governments control the Reserve currencies and they have the power to print money. The Reserve Banks transfer that Money to the Banks and they distribute it to people in the form of loans. Now satoshi has released a decentralized cryptocurrency that makes them uncontrollable and profitable, affecting a lot of their tax income, which makes them even more disapproved and will hate cryptocurrencies. More than just accepting it, I think crypto is the new generation and surely banks and governments should deal with it.

[livingfree]

Governments control the Reserve currencies and they have the power to print money. The Reserve Banks transfer that Money to the Banks and they distribute it to people in the form of loans. Now satoshi has released a decentralized cryptocurrency that makes them uncontrollable and profitable, affecting a lot of their tax income, which makes them even more disapproved and will hate cryptocurrencies. More than just accepting it,

Yes.

It is one reason why they're not yet into it. They can't print cryptos because they're decentralized and it's against to their business of having no central power towards the crypto.

I think crypto is the new generation and surely banks and governments should deal with it.

They do.

[Rasa nanas]

For me is because the price of the crypto is not stable,it can also affect the profit of the bank thats not good in their side.I think someday many banks accept cryptocurrencies for many transaction but in legal process.

not all cryptocurrencies have unstable prices because there are some cryptocurrencies that have stable prices, for example, such as BUSD and USDT. I think that fluctuating prices are not the main reason why many banks don't accept cryptocurrencies, perhaps another reason why banks don't accept cryptocurrencies is due to legal issues that are still unclear.

[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?

Are you right whether programmers will be able to create a simple open smart contract capable of cloning, and the emission of all clones was taken into account in the total volume. The fundamental difference from existing systems is that only the owner manages his financial asset and no one can reset it, as is now happening with DeFi. This system does not require the Oracles, the validators this role will be performed by the banks themselves and those financial structures that have accepted the terms of the project.

http://prosh.info/smart_eng.html

[Gosgosking]

The government wouldn't want bank to work with Bitcoin because of selfish interest which they can't regulate the system of Bitcoin. Instead they will look for all mean to fustrait Bitcoin.

[Abiky]

Simply because cryptocurrencies makes the banks obsolete, and bitcoin is a decentralized currency that no one controls it while the banks are a centralized currency that keeps track of every transactions in a ledger and make profits from it. And why would a bank work with crypto when they cannot be the middle man for every transactions that have been made on crypto and bank can't profit in any ways.

I found a video on youtube that explains why do banks hate or don't work with cryptocurrencies.

https://youtu.be/1Y7oHdnHssY

Crypto is considered as a threat to banks' existence, simply because no one can control it due to its decentralized and censorship-resistant nature. Why would banks work with crypto if they can't manipulate it at their own will? For this and many other reasons, banks will stay away from crypto as much as possible.

I wouldn't worry about banks' support towards crypto since it was never been about replacing the current monetary system. Fiat will eventually evolve into a CBDC, making banks even more powerful than usual. What's important is that crypto stays decentralized so that it could stand the test of time. As long as it stays that way, it'll live alongside Fiat for generations. Just my thoughts

[VictorProsh]

Simply because cryptocurrencies makes the banks obsolete, and bitcoin is a decentralized currency that no one controls it while the banks are a centralized currency that keeps track of every transactions in a ledger and make profits from it. And why would a bank work with crypto when they cannot be the middle man for every transactions that have been made on crypto and bank can't profit in any ways.

I found a video on youtube that explains why do banks hate or don't work with cryptocurrencies.

https://youtu.be/1Y7oHdnHssY

Crypto is considered as a threat to banks' existence, simply because no one can control it due to its decentralized and censorship-resistant nature. Why would banks work with crypto if they can't manipulate it at their own will? For this and many other reasons, banks will stay away from crypto as much as possible.

I wouldn't worry about banks' support towards crypto since it was never been about replacing the current monetary system. Fiat will eventually evolve into a CBDC, making banks even more powerful than usual. What's important is that crypto stays decentralized so that it could stand the test of time. As long as it stays that way, it'll live alongside Fiat for generations. Just my thoughts

Why did you decide that cryptocurrency threatens the existence of the banking system?
Decentralized finance threatens not the banks, but the authorities who exercise control over everyone. Banks will work with crypto currency if it is profitable and safe for them, while this is not the case.
CBDC is not a cryptocurrency, it is just a digital Fiat that the authorities can print as much as they want and will also control everyone through it.