Are banks needed for crypto?

[V-t.Ester]

As far as I know Binance phone application gives an opportunity to put your crypto on deposit. It is very nice and interesting option and it really works fine. Binance also gives an opportunity to take loans in crypto: https://www.binance.com/en/loan  . Probably other exchanges also give loans in crypto. However I believe that credits in crypto, it’s very risky business. 

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[Hippocrypto]

Banks and cryptocurrency are difficult to put together. In my opinion, I could say that cryptocurrency don't need banks because crypto has a strong security unlike banks. I think also that banks don't need cryptocurrency but it needs the blockchain technology to see every transactions in banks. But, I guess if they put together, the security system will be more stronger and a lot of things would be better, so, it would be an amazing thing.

[AicecreaME]

Just started to learn about DeFi, and a question arose.

Fiats have a loan mechanism. Manufacturers use it to improve their production.

Is there something similar in crypto? How does it work then? And are such services in demand? Do manufacturers take loans in crypto?

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

Thanks everyone in advance for the answers.

There is a thing such as crypto loan but it isn't widely used I think because it is much more complex than loans made in fiat. You see, cryptocurrencies' natural state is volatile, meaning the prices vary depending on what season we currently are, the time for today, and of course the external factors such as news, legality and the likes. When you plan to make a loan in crypto, you should know the basics and the terms of services so that you won't be shocked later on.

In crypto, when you want to loan, there is a collateral same with loans in fiat. Only that, collaterals in crypto is crypto as well and not properties unlike in fiat. You can only borrow if you are a verified user and if you are qualified to borrow. So in this instance, it isn't for those people who are not fond of KYC. The calculation of interest whenever you loan (in Binance for example) is hourly. Any amount of coin that you borrow will have its interest per hour. When you borrow it for less than an hour, the interest is still counted as an hour.

The collateral damage in crypto loans work the same way in fiat. If you will not be able to pay to the supposed date of repayment, they will liquidate your funds. Just like how the banks get your properties the moment you fail to pay on the agreed date of loan payment.

As of now, I don't think crypto loan will be a big thing or will happen soon because like what i have said, it is complex. Given the price fluctuations of crypto, the chances are 50/50 of benefiting and not. Although there are platforms that are doing it now, I don't think it will be patronized as much because it is riskier compared to trading or investing.

[South Park]

Just started to learn about DeFi, and a question arose.

Fiats have a loan mechanism. Manufacturers use it to improve their production.

Is there something similar in crypto? How does it work then? And are such services in demand? Do manufacturers take loans in crypto?

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

Thanks everyone in advance for the answers.

Loans in the world of cryptocurrencies will most likely work in a way similar to the way they worked for a long time, basically you will need a collateral to get a loan, this means that many people will not be able to obtain loans, but is it not that the case already with the traditional economy? And while some may think it is unfair it is not, a great deal of the loans today are given for consumption and not for anything productive by itself, and it is one of the reasons why the economies of the world are in such a huge trouble, so a return to a more simple system will be welcomed by me at least.

[LUCKMCFLY]

In some very famous banks, they have put cryptocurrencies, the most common case that I always like to put it as an example is JP Morgan, because his clients were demanding that they could operate with crypto and he had no choice but to put it, Not without first mentioning that I didn't recommend it because BTC wasn't trustworthy. Likewise, in Spain, BBVA is managing to operate with BTC and cryptocurrencies, and not only for Spain but for all BBVA subsidiaries worldwide, to be able to enter with this service.

We've seen several banks that had integrated or adopted crypto but doesnt mean that it will really be letting users to be that anonymous or cant be known which simply means that you do still in line with rules and regulations by the institution itself which means it did really remove out the essence of decentralization thats why i do really cross out that kind of consideration because crypto shouldnt really be regulated
nor be ran off by centralized platforms/institutions or something like this.We dont need banks on the essence of anonymity and decentralization but still people do see the different way around
which it isnt surprising at all.

Well if privacy and anonymity are concerned you are absolutely right, at that moment it begins to end and it is no longer the same, however there are people who have never worked or handled BTC or cryptocurrencies, and for them it is easier to trust one banking institution to indulge in the adventure of reading and learning because much more would be achieved.

The positive aspect that I rescue is that those who buy BTC or crypto in a bank, is an increase in demand in the BTC market and there are those people who were never going to enter on their own.

[Xampeuu]

Just started to learn about DeFi, and a question arose.

Fiats have a loan mechanism. Manufacturers use it to improve their production.

Is there something similar in crypto? How does it work then? And are such services in demand? Do manufacturers take loans in crypto?

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

Thanks everyone in advance for the answers.

Loans in the world of cryptocurrencies will most likely work in a way similar to the way they worked for a long time, basically you will need a collateral to get a loan, this means that many people will not be able to obtain loans, but is it not that the case already with the traditional economy? And while some may think it is unfair it is not, a great deal of the loans today are given for consumption and not for anything productive by itself, and it is one of the reasons why the economies of the world are in such a huge trouble, so a return to a more simple system will be welcomed by me at least.

in the traditional banking system there are some loans that are unsecured, such as credit cards, where we are fully responsible for our good name to a particular bank, and this does not require collateral. while in crypto we see in several exchanges that bring up images of master cards

[kotajikikox]

Just started to learn about DeFi, and a question arose.

Fiats have a loan mechanism. Manufacturers use it to improve their production.

Is there something similar in crypto? How does it work then? And are such services in demand? Do manufacturers take loans in crypto?

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

Thanks everyone in advance for the answers.

The only way to have  Loan mechanism here in crypto is with collateral in which you need to provide something more valuable than the amount you wanted to take as loan and because there are no assurance at all that we will receive payment from the loaner incase there are no collateral offered.
we have seen so many scamming happens here even the most trusted accounts becomes scammer because of a Non Collateral loans.

[Kez1817]

Banks already exist from the very beginning without crypto. I don't think if one day banks will adopt and accept cryptocurrency on their platform because banks is centralized while crypto is decentralized. Crypto is more secured than a banks and in crypto, you have full control with your assets unlike in banks that there is a third party.

[South Park]

Just started to learn about DeFi, and a question arose.

Fiats have a loan mechanism. Manufacturers use it to improve their production.

Is there something similar in crypto? How does it work then? And are such services in demand? Do manufacturers take loans in crypto?

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

Thanks everyone in advance for the answers.

Loans in the world of cryptocurrencies will most likely work in a way similar to the way they worked for a long time, basically you will need a collateral to get a loan, this means that many people will not be able to obtain loans, but is it not that the case already with the traditional economy? And while some may think it is unfair it is not, a great deal of the loans today are given for consumption and not for anything productive by itself, and it is one of the reasons why the economies of the world are in such a huge trouble, so a return to a more simple system will be welcomed by me at least.

in the traditional banking system there are some loans that are unsecured, such as credit cards, where we are fully responsible for our good name to a particular bank, and this does not require collateral. while in crypto we see in several exchanges that bring up images of master cards

Yeah I know but I was talking about the past, credit right now is easy, everything can be bought on credit, after all if you can cover the price of what you want to buy with a credit card then you are making a purchase using credit, however in the past this was not the case, you could not get a loan except for productive endeavors, and I think it is time we go back to that as it is obvious that people cannot manage their credit well and banks are taking advantage of them with all of those unsecured loans.

[dark1234]

Just started to learn about DeFi, and a question arose.

Fiats have a loan mechanism. Manufacturers use it to improve their production.

Is there something similar in crypto? How does it work then? And are such services in demand? Do manufacturers take loans in crypto?

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

Thanks everyone in advance for the answers.

Loans in the world of cryptocurrencies will most likely work in a way similar to the way they worked for a long time, basically you will need a collateral to get a loan, this means that many people will not be able to obtain loans, but is it not that the case already with the traditional economy? And while some may think it is unfair it is not, a great deal of the loans today are given for consumption and not for anything productive by itself, and it is one of the reasons why the economies of the world are in such a huge trouble, so a return to a more simple system will be welcomed by me at least.

in the traditional banking system there are some loans that are unsecured, such as credit cards, where we are fully responsible for our good name to a particular bank, and this does not require collateral. while in crypto we see in several exchanges that bring up images of master cards

Yeah I know but I was talking about the past, credit right now is easy, everything can be bought on credit, after all if you can cover the price of what you want to buy with a credit card then you are making a purchase using credit, however in the past this was not the case, you could not get a loan except for productive endeavors, and I think it is time we go back to that as it is obvious that people cannot manage their credit well and banks are taking advantage of them with all of those unsecured loans.

,actually between bank loans and cryoto have similarities. However, crypto transactions do not require trust. Digital tools and breakthroughs such as smart contracts make them paperless, no need for complicated authorizations and repeated checks when transacting with crypto, just like making loans. Therefore, crypto loans can be processed in seconds to minutes, you can also choose loans with DeFi or CeFi schemes.

[Dragonfund]

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.

You and I technically knows that banks are very much needed in cryptocurrency otherwise, majority Wil just be hearing of Bitcoin and ethereum and wouldn't be able to do much or purchase.
Unlike people that are closer to Stable coin OCT like Tether that can easily Mint Usdt with fiat and buy their desire coins.
Banks are needed to switch between two world, you need bank to transition your value from fiat into cryptocurrency and hence they are needed for now, may be things might change in the future.