Are banks needed for crypto?

[Koro-Sensei]

In terms of features that DeFi projects and Banks has, the twi has similarity. However, the collaterals are different. When you borrow in banks, you need physical assets like cars, houses or even property lots. In crypto, you also needs collaterals which is crypto assets that you have. My point is that, banks are institutions that has centralised system. It has vulnerabilities and strengths that rely on old monetary system. DeFi in the other hand is the future of banking. No more intermediaries. Only smart contract. So in short, crypto does not need banks. Banks needs crypto.

[geegaw]

If we can do all bank functions ourselves then we no longer need banks, the presence of banks in crypto is an obstacle which I'm sure one day will apply strict rules for withdrawals, moreover we can send crypto with large or small amounts in just a few seconds, banks don't needed for crypto.

A special function of the bank is to turn the source of the money from the mysterious into legal and usable and to be able to replicate this functionality for crypto, we need government but the government might not be happy to give us permission for this function. Although the bank can hinder and exacerbate the principles on crypto but their regime still maintains equality and provides valid and safe funds as long as the scope and transactions of crypto are not disclosed to the outside, without licensing and conversion from a major bank, our crypto money is forever black money and must be operating illegally

[watergold]

Technically, banks may not have anything to do with crypto, because judging from the system they have developed, they are very different 360 degrees, where they contradict one another.
but in a crypto partnership it will not be separated from banks and fiat even though the influence is very small but fiat will still be in crypto forever because they are actually seen as a symbiosis of mutualism, namely mutual need between one another.

[Pamadar]

In terms of features that DeFi projects and Banks has, the twi has similarity. However, the collaterals are different. When you borrow in banks, you need physical assets like cars, houses or even property lots. In crypto, you also needs collaterals which is crypto assets that you have. My point is that, banks are institutions that has centralised system. It has vulnerabilities and strengths that rely on old monetary system. DeFi in the other hand is the future of banking. No more intermediaries. Only smart contract. So in short, crypto does not need banks. Banks needs crypto.

The sole purpose of crypto is to be your own bank if I'm not mistaken?

With the way you explained your side, there are similarities since both need collaterals, but banks still got the advantage since it
was the first option since many are relying with centralized system

But in due time, when more people embrace crypto, the advantages will be slimmer. DeFi is introducing how crypto will help
and for those who will take time to understand will enjoy the benefits.

[sana54210]

If we can do all bank functions ourselves then we no longer need banks, the presence of banks in crypto is an obstacle which I'm sure one day will apply strict rules for withdrawals, moreover we can send crypto with large or small amounts in just a few seconds, banks don't needed for crypto.

That is basically what defi means. It is decentralized FINANCE, which means it is trying to do the absolute best in that regard and I believe it could definitely do that in the future as well. Sure there are some features that we are missing right now, but that doesn't mean that we are going to never have them. Eventually one by one there will be more and more products that will replace banks.

One day we are going to have projects that replaces banks from our lives all together. Cards are the most hard part, it is hard to make cards that are accepted all around the world. However we are going to basically slowly and gradually that will end up with something that is as close to banks as it gets. I hope that it will happen very soon, in a few years, but at the same time it doesn't mean that we should be expecting others to fill the void we want filled.

[AmoreJaz]

If we can do all bank functions ourselves then we no longer need banks, the presence of banks in crypto is an obstacle which I'm sure one day will apply strict rules for withdrawals, moreover we can send crypto with large or small amounts in just a few seconds, banks don't needed for crypto.

That is basically what defi means. It is decentralized FINANCE, which means it is trying to do the absolute best in that regard and I believe it could definitely do that in the future as well. Sure there are some features that we are missing right now, but that doesn't mean that we are going to never have them. Eventually one by one there will be more and more products that will replace banks.

One day we are going to have projects that replaces banks from our lives all together. Cards are the most hard part, it is hard to make cards that are accepted all around the world. However we are going to basically slowly and gradually that will end up with something that is as close to banks as it gets. I hope that it will happen very soon, in a few years, but at the same time it doesn't mean that we should be expecting others to fill the void we want filled.

the problem of most DeFi platforms is the credibility and the longevity of their business. as we have seen, a lot come and go already, abandoned, shelved, whatever you call it. and only few can really be trusted, but still, you have no idea if they can survive or will still be here after 5 years or so. so that's the big difference for me. traditional banking is still preferred because they already established their financial system and you have no worries about their disappearance. because if they are going bankrupt, you will know it before hand. but with defi, if they want to disappear, they can, even without informing their clients.

[AndySt]

Technically, banks may not have anything to do with crypto, because judging from the system they have developed, they are very different 360 degrees, where they contradict one another.
but in a crypto partnership it will not be separated from banks and fiat even though the influence is very small but fiat will still be in crypto forever because they are actually seen as a symbiosis of mutualism, namely mutual need between one another.

The functions of the banking system are much broader than just making payments in fiat currency. Ideally, banks are enterprises that accumulate financial resources and carry out various actions with these funds in order to earn more. It has also long been the custom that the state is more accustomed and convenient to conduct its monetary policy through the involvement of banks. Therefore, when they say that cryptocurrencies can make the banking system unnecessary, this is an overly optimistic and greatly simplified view of things. In any case, banks will remain as enterprises with financial specialization and, in addition to financial actions with fiat currencies, banks can conduct the same operations with cryptocurrencies.

[Lubang Bawah]

The presence of cryptocurrencies no longer requires the services of third parties such as banks, cryptocurrencies are safe and fast transactions that can be done in a few seconds, and most importantly high security because we store in our wallets it is almost impossible to hack.

[oHnK]

I actually think that in the future it will be very easy to find secure crypto lending services in various applications.  And I have a guess in the future, e-commerce around the world will start looking at crypto as their payment.  Because if I pay attention to the development of e-commerce in my country, I have tried all lines of business.  At first it was only a third party that brought together merchants with buyers, there are already many services offered in one application.  to provide loans for shopping and so on.  So what is currently untouched is Crypto even though this is a sexy market.

[ReiMomo]

We have very many features which should be focused on besides lending and borrowing. Yes, it depends on everyone's need. I feel much comfortable with current crypto features. Blockchain technology has been the best and secure enough to opt and use. Depending on a 3rd party is out dated to be frank. We have everything in hand to just experience hand in hand here in crypto. Feel much secured.

[rosenbauer02]

Here in crypto ... you simply emit new token, create its value using profits from "improved production" and collect millions from investors which act like decentralized lender here. But if you want a real loan there are already bunch of projects that solve this. The only problem is collateral. So far there is no problem to borrow crypto using other crypto as collateral but sooner or later we will see companies that will offer lending using "real word" collateral, but there is no privacy anymore and most likely no decentralization.

If loaning requires a real world collateral then I would loan in non-crypto platform since the goal being anonymous or personal info free is defeated rather than loan in crypto platform which your identity can be link to other your crypto space.

[watergold]

Technically, banks may not have anything to do with crypto, because judging from the system they have developed, they are very different 360 degrees, where they contradict one another.
but in a crypto partnership it will not be separated from banks and fiat even though the influence is very small but fiat will still be in crypto forever because they are actually seen as a symbiosis of mutualism, namely mutual need between one another.

The functions of the banking system are much broader than just making payments in fiat currency. Ideally, banks are enterprises that accumulate financial resources and carry out various actions with these funds in order to earn more. It has also long been the custom that the state is more accustomed and convenient to conduct its monetary policy through the involvement of banks. Therefore, when they say that cryptocurrencies can make the banking system unnecessary, this is an overly optimistic and greatly simplified view of things. In any case, banks will remain as enterprises with financial specialization and, in addition to financial actions with fiat currencies, banks can conduct the same operations with cryptocurrencies.

Thank you friend for reminding me an important point that I almost forgot. because it considers fiat and bank to be the same but basically fiat is a component of the bank itself.
but apart from that it's all in line with what you said that sanya is too optimistic and indeed very overconfident when it comes to saying that crypto can live without banking and can even replace it.
at least I still hold fast to the belief that I believe that even though crypto and banking cannot be combined but in this case it doesn't mean we have to choose one and leave the other because I live between the two.

[19Nov16]

Bank and crypto is a difficult thing to put together, the presence of a bank with many conditions and difficulty to withdraw and fees for large transactions are certainly not expected by crypto users, we are in a different era that no longer needs banks to control our money, this is the modern era so banks are not needed in crypto.

[RondoAnyar]

Bank and crypto is a difficult thing to put together, the presence of a bank with many conditions and difficulty to withdraw and fees for large transactions are certainly not expected by crypto users, we are in a different era that no longer needs banks to control our money, this is the modern era so banks are not needed in crypto.

Even though that doesn't mean banks aren't necessary in life.
We certainly already know that the function of the bank is for what, apart from the rules and system imposed by the bank, we cannot eliminate banking in life because it is related to the existing economic system.
crypto is indeed very good but that doesn't mean we only live from crypto, at least we have to be realistic that in real life the role of fiat and paper money is still a vital tool in payments.

[darewaller]

Define "needed", and we could have an answer. I mean surely it is not "needed" in the sense that we do not have to have it, we could handle p2p and swaps and so forth and make due, we will not be forced to use them. However do they make it easier? They really do, I still pay fiat wherever I go, so I need fiat in my bank account, I could use p2p when trading if I want to, but using Binance and withdrawing to my bank account directly makes things a lot easier to be fair.

So, I have to say that things are looking amazing for banks now because they make things easier. You are not forced in any way or shape, so they are not "needed", but still it is definitely not a bad thing neither.

[Mahanton]

Isn't that killing DeFi idea? Is there a future for loan mechanism in crypto?

Thanks everyone in advance for the answers.

DeFI could exist or become a trend but doesnt mean that we wouldnt really need any service that came from Bank.Of course there are services which banks are only able to do so.

Yeah, decentralized finance is good but doesnt mean that it will really overtake or could patch up on what centralized institutions could do.
We do still need them even some people doesnt like them or not.Lets just bare these benefits that we do get from this new tech/services/platforms.

[andriarto]

Bank and crypto is a difficult thing to put together, the presence of a bank with many conditions and difficulty to withdraw and fees for large transactions are certainly not expected by crypto users, we are in a different era that no longer needs banks to control our money, this is the modern era so banks are not needed in crypto.

Even though that doesn't mean banks aren't necessary in life.
We certainly already know that the function of the bank is for what, apart from the rules and system imposed by the bank, we cannot eliminate banking in life because it is related to the existing economic system.
crypto is indeed very good but that doesn't mean we only live from crypto, at least we have to be realistic that in real life the role of fiat and paper money is still a vital tool in payments.

we really have to be able to live realistically with the existing conditions and situations that occur. we will still need a bank, because every transaction will be converted to fiat to be able to shop for the necessities of life. On the other hand, banks without crypto are actually not a problem for them, because banks are protected by a big power, namely the government

[SquallLeonhart]

Bank and crypto is a difficult thing to put together, the presence of a bank with many conditions and difficulty to withdraw and fees for large transactions are certainly not expected by crypto users, we are in a different era that no longer needs banks to control our money, this is the modern era so banks are not needed in crypto.

Talking about money lending, there are lots of platforms here that lends money to people in the cryptocurrency community. Maybe the way they function may be different from how banks functions, but it’s still the same service that they’re offering. This is a system that doesn’t require banks to operate.

When it comes to cryptocurrency everyone is in charge and manages their finance, now whatever business you’re doing with anyone , you’re doing it directly with them, and there are no middle men needed for any form of transactions. So, banks are not needed at all.

[isaac_clarke22]

~

Indeed, that is why I invested in crypto in the first place. People think it is great to entrust their money to a third party, but I prefer it being my own money and not being risked to someone else's hands.
Right now, the "advantage will be slimmer" ain't not going to happen if people still see crypto to being something to make rich overnight.

[Turbolinea]

For now, yes we need banks for cryptocurrency usage. I mean that we can of course use cryptocurrencies as a payment method wherever it is available. However, we don't see that the majority of the places accept cryptocurrencies. Until then, we will need banks and fiat to convert our coins to fiat and use it for payments in most of the places. But in the future, I think that we will see the days too that we will not need fiat and banks.