Is it possible for Traditional Banks to cooperate with Crypto

[lizarder]

DeFi or decentralized finance can threaten the world of traditional banking, because of the shift in lending, even DeFi itself is known to be able to provide loans like other traditional banks.
This can affect existing traditional banks, because there will be competition between traditional banks and crypto in general, regardless of the various problems that will occur, crypto and traditional banks must be able to adapt to each other.

Crypto development is progressing so rapidly, this can be seen from the many users who join here, if Traditional Banks close themselves it is not impossible to be abandoned in the next few years.
Although currently crypto is still very risky, it is not impossible that in the future crypto can change finances, just need to wait for regulations or legal regulations, if this happens, it is certain that crypto will grow and be accepted by many people.

[avikz]

DeFi or decentralized finance can threaten the world of traditional banking, because of the shift in lending, even DeFi itself is known to be able to provide loans like other traditional banks.

Cryptocurrency is not here to threat the traditional banking system. Defi is a different kind of lending which requires a collateral in the form of crypto. Can you take a home loan from a defi platform? Can you take a car loan from a defi platform? The answer is no!

Defi is here to exclusively cater the crypto community. It can't fulfill the need of traditional consumers and hence I don't see a threat to the banking system anywhere. Also it is not practical for anyone to move to complete crypto without the need of banking. Some exceptions can happen but largely it's not really a convenient mode of payment. So there's no competition itself.

[Asiska02]

The traditional banking system sees crypto as a threat even though crypto is not here to threaten them. Each of them have their own method of operations and exclusively independent of each other. They all share something similar, they’re both known  for financial services. No matter how exclusively they operate, one must definitely pose threat at a particular point in time. Cooperating with each other is not something that might be possible now or can ever be possible because of how volatile the crypto market is and also the traditional banking system been decentralized.

[Yamifoud]

They're not OP instead, they will fight against the growth of crypto as they think this was a threat to them. Because the moment that crypto becomes legal, many will no longer use the banking system anymore. Of course, this never makes them die or the collapse of the banking system, however, this will cause a downtrend of their possible income.

Digitalization is a new trend now if we see, Banks have also upgraded their system to cope with the demand of digitalization. This is a way to a healthy compilation against cryptocurrencies.

[crzy]

Banks will stay, they might cooperate later on especially now that many are into blockchain which helps them in many ways. They might fight with those fake projects but can’t afford to mess with Bitcoin because this market can’t be controlled by those institutions so they have no choice but to adopt as well. Banks will always be a bank, what’s good for them they will take it.

[Xal0lex]

It is unknown what competition between banks and cryptocurrencies will be after the widespread introduction of CBDC. It is unlikely that we will see the closure of banks in the next few years. Most likely, centralized finance and decentralized finance will develop and exist in parallel. Even if there is a direct threat to the banking system, governments are more likely to start restrictions for cryptocurrency than to destroy banking institutions. This is not beneficial to big capitals, and of course, no one will give full power to decentralized finance, where there is no state control. Therefore, replacing banks with DeFi is more of a fantasy.

[blockman]

The first thing that I can think of banks supporting crypto is not flagging down transactions from the exchanges. If you directly withdraw from an exchange to a bank, that won't count for them as you're just doing a casual cashout and withdrawal from them.
Because there are banks these days that will flag that transaction if it happens related to cryptocurrencies whether it's from someone or will label the transactions in cryptocurrencies. Banks won't be obsolete, just see how the exchanges have been pausing withdrawals because of the continuous drop in prices of bitcoin.

[Vaculin]

DeFi or decentralized finance can threaten the world of traditional banking, because of the shift in lending, even DeFi itself is known to be able to provide loans like other traditional banks.
This can affect existing traditional banks, because there will be competition between traditional banks and crypto in general, regardless of the various problems that will occur, crypto and traditional banks must be able to adapt to each other.

Crypto development is progressing so rapidly, this can be seen from the many users who join here, if Traditional Banks close themselves it is not impossible to be abandoned in the next few years.
Although currently crypto is still very risky, it is not impossible that in the future crypto can change finances, just need to wait for regulations or legal regulations, if this happens, it is certain that crypto will grow and be accepted by many people.

Well, as long as the government never cooperate and always see crypto as a competitor to fiat, traditional banks will never allow to accept crypto or integrate crypto into their transactions. However, if crypto will be legally adopted and accepted in the future, traditional banks will never stop their operation but they will continue to serve their customers and assist them in which type of payment they are convenient to make, be it crypto or in fiat.

[Mahanton]

Both would co-exist with each other but there's no way that traditional banks would be adopting or integrating or cooperating with crypto even if they do tend to plan with such thing but we know that
crypto is decentralized in most projects that is existing.There's no way that they could really be having that full control which simply implies that it would really be totally opposing their overall
preference in terms of centralization thats why its not surprising that they do really always made out some counter move towards crypto if they do have the chance.
So dont expect that everything would goes well in between the two.

[Delightcrypto1]

Cryptocurrency has grown. Just think between 2009 and now Crypto has taken over almost all the sectors of the world global system. Cryptocurrency and traditional system are two different financial system with different ides. Tradition  bank can develop chain to integrate the traditional institution to comprehend with blockchain idea since everyone is now in for digital currency.

[AliMan]

DeFi or decentralized finance can threaten the world of traditional banking, because of the shift in lending, even DeFi itself is known to be able to provide loans like other traditional banks.
This can affect existing traditional banks, because there will be competition between traditional banks and crypto in general, regardless of the various problems that will occur, crypto and traditional banks must be able to adapt to each other.

Crypto development is progressing so rapidly, this can be seen from the many users who join here, if Traditional Banks close themselves it is not impossible to be abandoned in the next few years.
Although currently crypto is still very risky, it is not impossible that in the future crypto can change finances, just need to wait for regulations or legal regulations, if this happens, it is certain that crypto will grow and be accepted by many people.

These days banks already cooperated with crypto as per review made, just for example in binance p2p their mode of payment and has the option to link to each users bank account. But only for kyc verified users only, they're very careful on this matter of who's the one transacting with them due to potential scammers roaming online.

[bittick]

Why not? Basically traditional bank was seeing crypto as a competitor but it can co exist. This time if you know the fact if people were using their traditional bank as a way to transfer their money into the crypto market. That means if the traditional bank is possible to cooperate with the crypto. Remember the reserved funds that used to backed the stable token was also still on the traditional bank as well. I think that that crypto can't leave from the traditional bank as well.
That is still become one of best gateway for money to come in

[fuer44]

looks like it won't happen even for a long time. because if for example a traditional bank accumulates just one of the cryptocurrencies for example a blockchain network for transactions, it will make it anonymous which will be difficult to track in case of theft or something else. Currently, traditional banks have also launched mobile banking which makes it easy for users to make online transactions and that is enough.

in terms of currency, crypto is also too risky because of its volatile price. logically, banks may not coorporate with crypto, but in reality we'll see if that can happen.

[lizarder]

DeFi or decentralized finance can threaten the world of traditional banking, because of the shift in lending, even DeFi itself is known to be able to provide loans like other traditional banks.

Cryptocurrency is not here to threat the traditional banking system. Defi is a different kind of lending which requires a collateral in the form of crypto. Can you take a home loan from a defi platform? Can you take a car loan from a defi platform? The answer is no!

Defi is here to exclusively cater the crypto community. It can't fulfill the need of traditional consumers and hence I don't see a threat to the banking system anywhere. Also it is not practical for anyone to move to complete crypto without the need of banking. Some exceptions can happen but largely it's not really a convenient mode of payment. So there's no competition itself.

Indeed, there is no real threat to conventional banks with the developments that occur in crypto, but many developing countries are starting to be wary of this problem, they can't even take home or car loans from the defi platform, but the worry is not only here.

They're not OP instead, they will fight against the growth of crypto as they think this was a threat to them. Because the moment that crypto becomes legal, many will no longer use the banking system anymore. Of course, this never makes them die or the collapse of the banking system, however, this will cause a downtrend of their possible income.

Digitalization is a new trend now if we see, Banks have also upgraded their system to cope with the demand of digitalization. This is a way to a healthy compilation against cryptocurrencies.

This is what they are worried about, not about the change of conventional banks to crypto, but more about financial effects that cannot be controlled by the state, so far there is no regulation that can regulate all of that, even in crypto there has never been such a thing as inflation, financial freedom can destroy a system and I think this is the big problem

Banks will stay, they might cooperate later on especially now that many are into blockchain which helps them in many ways. They might fight with those fake projects but can’t afford to mess with Bitcoin because this market can’t be controlled by those institutions so they have no choice but to adopt as well. Banks will always be a bank, what’s good for them they will take it.

Openness in accepting progress is very important to care for differences, for example crypto is starting to be juxtaposed with conventional banks, this can actually keep the bank running according to its function, but what needs to be added is regulation to take care of all of it properly

[mumang siat]

DeFi or decentralized finance can threaten the world of traditional banking, because of the shift in lending, even DeFi itself is known to be able to provide loans like other traditional banks.
This can affect existing traditional banks, because there will be competition between traditional banks and crypto in general, regardless of the various problems that will occur, crypto and traditional banks must be able to adapt to each other.

Crypto development is progressing so rapidly, this can be seen from the many users who join here, if Traditional Banks close themselves it is not impossible to be abandoned in the next few years.
Although currently crypto is still very risky, it is not impossible that in the future crypto can change finances, just need to wait for regulations or legal regulations, if this happens, it is certain that crypto will grow and be accepted by many people.

Dare to speculate and dare to take risks, at least this is a guide for developed countries, they don't start to limit crypto development, they also don't try to legalize it in the near future, in principle they want to open up to something that exists, especially nowadays technology can make things easier, both crypto and conventional banks are not involved in the problem, but must be able to run side by side together, because to avoid financial freedom, it is necessary to have a system that regulates and controls them on the way, I think both crypto and conventional banks, both will continue to be needed by many people going forward

[inthelongrun]

Right now there's already a cooperation between many banks and crypto platforms. In my country, more and more banks and financial institutions are considering crypto platforms. Even our central bank will be working with some of these crypto platforms for improvements. The bank don't need to get threatened by crypto progress, whereas, they just need to understand how it works and then adopt when they deem it necessary and some sort of improvement to the system.

Decentralized finance is another thing. I still find it difficult to regulate unless there are changes and well, it may not anymore fully decentralized in nature. Our central banks and governments existed in order to regulate.   

[TopT3ns]

Actually traditional banks can switch to the world of cryptocurrency and apply cryptocurrency technology, it's just that all of this has a very high risk and of course blockchain technology if applied to banks can be wider and everything becomes transparent so it is likely that banks will find it difficult to make profits and will likely there is a reduction in employees because everything is digital and automatic.

[Davian144]

DeFi or decentralized finance can threaten the world of traditional banking, because of the shift in lending, even DeFi itself is known to be able to provide loans like other traditional banks.
This can affect existing traditional banks, because there will be competition between traditional banks and crypto in general, regardless of the various problems that will occur, crypto and traditional banks must be able to adapt to each other.

I will try to sort this out because a traditional bank is a place where everyone can save their money or assets with ease of monitoring it through an application that has been provided by the bank. This means that at this time Banks are still needed by everyone because Banks can only store the currency of their respective countries. And if someday Banks can cooperate with cryptocurrencies, I think it still needs some new things that must be changed by the Bank besides regulations from the state.

Crypto development is progressing so rapidly, this can be seen from the many users who join here, if Traditional Banks close themselves it is not impossible to be abandoned in the next few years.
Although currently crypto is still very risky, it is not impossible that in the future crypto can change finances, just need to wait for regulations or legal regulations, if this happens, it is certain that crypto will grow and be accepted by many people.

I don't deny the development of crypto at this time because there are many examples, but for now Banks are still needed to collaborate with crypto because you yourself may not be able to cash out the cryptocurrency you have if in your country you no longer have a bank at this time.

[lobo13hf]

it's always possible. I just try to remind you that if central or traditional bank will always be needed by people no matter how hard they were blaming the central bank but the fact that if these kind of people are still using central bank for their daily activities. Central bank already cooperated with crypto but it's not all of central bank was doing it. It's always possible for the traditional bank to cooperate with the crypto company. i have seen so many times central banks were investing in the crypto

[ningrum]

Actually traditional banks can switch to the world of cryptocurrency and apply cryptocurrency technology, it's just that all of this has a very high risk and of course blockchain technology if applied to banks can be wider and everything becomes transparent so it is likely that banks will find it difficult to make profits and will likely there is a reduction in employees because everything is digital and automatic.

Those traditional banks will also consider a lot of things and I don't think it's an easy matter to switch and implement blockchain technology,
of course for us as users with the technology it will make it easier in banking matters,
but on the other hand like you said that there will definitely be a reduction in employees and that is bad news for them