Bank vs Crypto: Are they opposites?

[Blitzboy]

Banks have a lot to lose from crypto's disruption, but they can gain a lot by adapting. I think we should emphasize synergies over conflicts. Banks have regulatory approval and reach most crypto businesses dream of. Crypto can help banks innovate out of stagnation.

Smart contracts could automate loan approval and remittance for banks. This would cut fraud, expenses, and transaction time. It would also alleviate banks' concerns about unlawful crypto use. Money laundering would be harder with a transparent, immutable ledger. Lets see this as a chance to mix old and modern. If both industries innovate and adapt, they can rise together.

[traderethereum]

Banks depend on the government.
If the government approves the use of crypto in banks, the banks will comply and follow suit.
But if not, banks will never use crypto and will still use fiat, maybe digital fiat.
In this case, banks are neutral because everything depends on government policy towards crypto.
But both banks and crypto will indeed continue to grow.

[Hamza2424]

As Op said in Short Crypto is doing the work of Banks, Banks were introduced in the world to provide financial services the doors people to help them make their daily transactions and make their Business easy. They failed  and thanks to them we got crypto instead, As for the numbers there are millions of Banks working for this purpose but still millions of people cant get a simple loan and, cant open an account to save their money. Crypto Business just learned from the flaws of Banks and introduced all of their services in the hands of people more transparent easy to access in the form of a digital financial world, not only a solution.

Covering a step of perfection to decentralized transparent solution for all this, Now you should know in an easy and short story that how they are relatable.

[Yatsan]

Not totally, but has different characteristics; govenment acknowledgement, decentralization, security, volatility, and more. Both are financial systems (individual vs institutional).

Banks and cryptocurrencies will be used together, central banks and banks or generally governments won't be able to stop it. People have their voice and power so governments can not prohibit their citizens to use cryptocurrencies in all nations globally. Simply, they can not do it in nations where power is not centralized in dictators and dictatorship.

Banks will follow central banks that are going to create more CBDCs that will be used by citizens. Citizens have other options, Bitcoin and cryptocurrencies and if they feel unsafe with CBDCs or any cryptocurrency deployed by banks, they will choose Bitcoin.

CBDC tracker with information about CBDC developments globally.

With my firm conviction, I believe in the coexistence and development of both.  But saying that the government cannot ban us from using bitcoin is not entirely correct, they are still the ones who make all the decisions. If we really have a voice and power, why can't anyone fight for bitcoin to become a currency? Meanwhile, the government only accepts bitcoin as a commodity and they will never allow bitcoin to become a currency and we will have no right to demand that from them. CBDC will be what they force us to use and we do not have the right to choose bitcoin as an alternative payment method to CBDC.

They clearly have the power to do so as evident with countries such as China. Governments want to regulate this industry which would be difficult given its nature. The only way possible is thru third party wallets and system but it would make a huge difference if ever things would be totally regulated. Interest towards this industry might negatively change simply because the concept itself will be changed. I do hope that co-existence to happen than with full restriction.

[JunaidAzizi]

In short, the answer is no. Banks and crypto are not opposites, but they have different purposes and ways of working.

The future relationship between banks and crypto is uncertain. Both have some potential conflicts but also a potential collaboration is there. However, it is clear that both will influence each other in the future.
Yes, I agree with you that crypto uses blockchain and bank traditional finance institutions that provide services such as loans, etc. but there are some more things I want to mention.
-As you all know crypto now becoming popular so maybe the bank should adopt their business which will make a new collaboration.
-Banks may be using blockchain for more secure and transparent records.
-The bank will meet with crypto to start a new offer for customers to give them loans based on crypto assets.

[The Cryptovator]

It's not about only crypto vs. banks, it's about decentralized vs. centralized. So definitely they are opposites. But it doesn't mean both can't work together. Like the government works with the opposition party when necessary. Banks could collaborate with crypto, but it doesn't mean they will lose their revenue. Rather they would earn additional revenue from crypto collaboration that would make easy solutions for crypto users. At the end of the day, we turn our crypto into fiat. So the bank could make it possible. But they dislike crypto due to decentralization. But I believe very soon major banks will start collaborating with cryptocurrency.

[dunfida]

Not totally, but has different characteristics; govenment acknowledgement, decentralization, security, volatility, and more. Both are financial systems (individual vs institutional).

Banks and cryptocurrencies will be used together, central banks and banks or generally governments won't be able to stop it. People have their voice and power so governments can not prohibit their citizens to use cryptocurrencies in all nations globally. Simply, they can not do it in nations where power is not centralized in dictators and dictatorship.

Banks will follow central banks that are going to create more CBDCs that will be used by citizens. Citizens have other options, Bitcoin and cryptocurrencies and if they feel unsafe with CBDCs or any cryptocurrency deployed by banks, they will choose Bitcoin.

CBDC tracker with information about CBDC developments globally.

With my firm conviction, I believe in the coexistence and development of both.  But saying that the government cannot ban us from using bitcoin is not entirely correct, they are still the ones who make all the decisions. If we really have a voice and power, why can't anyone fight for bitcoin to become a currency? Meanwhile, the government only accepts bitcoin as a commodity and they will never allow bitcoin to become a currency and we will have no right to demand that from them. CBDC will be what they force us to use and we do not have the right to choose bitcoin as an alternative payment method to CBDC.

They clearly have the power to do so as evident with countries such as China. Governments want to regulate this industry which would be difficult given its nature. The only way possible is thru third party wallets and system but it would make a huge difference if ever things would be totally regulated. Interest towards this industry might negatively change simply because the concept itself will be changed. I do hope that co-existence to happen than with full restriction.

Cant really be possible on such way on which tending to make out some acceptance and adaptation but sacrificing anonymity and total decentralization? It cant really be that that happening if we do speak about on how
government is really that liking on which it cant really be that possible to be integrated in between crypto and government itself. We do always have that fine line when it comes to their main differences but somehow it could really be that reconsidered but expect that there would be things that would be removed out.Government doesnt really like the essence on having that decentralization which it would really be totally opposing on what they do prefer and want and this is why its not shocking that they would really be going against with cryptocurrencies main feature or characteristics but just like been said above that having those opposites doesnt
mean that it couldnt really be able to have that integration but just like on what i said earlier that it would really be having those notable restrictions or something that had been removed which it would be completely
that taking away that anonymity or having that full control thing.

[darkangel11]

OP is mixing things together. Banks are custodians, the way an exchange can take custody of your cryptocurrency.
It's not about banks vs crypto but fiat money vs crypto. Banks can compete with exchanges and companies that offer you interest for holding coins with them.
So, is crypto in opposition to fiat money, yes it is.
Are banks in opposition to crypto exchanges? I'd say no, but they are competing for customers. If people are allowed to do everything with their crypto that fiat money offers now, they won't use fiat money anymore.

[usekevin]

Banks have a lot to lose from crypto's disruption, but they can gain a lot by adapting. I think we should emphasize synergies over conflicts. Banks have regulatory approval and reach most crypto businesses dream of. Crypto can help banks innovate out of stagnation.

Smart contracts could automate loan approval and remittance for banks. This would cut fraud, expenses, and transaction time. It would also alleviate banks' concerns about unlawful crypto use. Money laundering would be harder with a transparent, immutable ledger. Lets see this as a chance to mix old and modern. If both industries innovate and adapt, they can rise together.

Banking is totally against the trading and crypto trading,today I went to bank and had some talk with the bank employee.The employee thought the crypto trading was against the government.They thought it’s like black money involved is the major part in the crypto currency.Bitcoin was regulated in my country,but the banker with the financial knowledge doesn’t aware about it was the sad part.From that I had learned,how it’s hard to trade the cryptocurrency in the country where the bitcoin is illegal or in neutral state.The fraud also using bitcoin for their transaction is the reason behind the banker opinion.

[Gyfts]

There are some potential conflicts between banks and crypto. For example, banks are concerned that crypto could reduce the use of fiat currency and reduce their revenue from services such as credit cards and loans. Additionally, banks are concerned that crypto could be used for illegal activities such as money laundering and terrorist financing.

The modern banking system relies on fractional reserve banking, and crypto would essentially disallow banks from doing so. Fractional reserve banking only works because the government usually acts as arbiter with an infinite balance in case the bank goes under which is why banks would be reluctant to adopt more crypto into their portfolio.

The government hasn't hesitated in the past to bail out private banks, so it remains within their interest to act recklessly with depositor funds and be bailed out with no penalty.

[MinoRaiola]

Conflict:

Banks are concerned that crypto could reduce the use of fiat currency and reduce their revenue from services such as credit cards and loans.
Banks are concerned that crypto could be used for illegal activities such as money laundering and terrorist financing.

Money or bitcoin or even gold is always used for good and bad things. And I dont think that will ever change, you have to exchange values if you want to own something. The banks are afraid because they cant control Bitcoin, otherwise they are also afraid of gold. Now banks are trying to offer a hodl service so they can get power over some of Bitcoin.

[famososMuertos]

I don't think that the approach between the parties is as it is stated, for example, the TDC Visa and Mastercard, or any other, work with the banks and are together but not mixed, but people tend to think that this idea is "thanks..." to banks, or they are the ones who handle the transactions, in fact TDC can be issued for any type of business,  soccer teams, telephone companies, stores, etc..

The commercial join that can comes to exist (it already exists in some way) is only linked to financial success, if the banks make profits,they don't care about anything else, or they will care as much as when they give you a loan and they think about the benefit to you as a person or that you finally pay the interest on the assigned credit.

Banks are mostly private institutions that seek returns, so things like whether it is legal or illegal, then they themselves fall into that "border" or gray zone of what it means to work with the situation of money laundering, suspicious transactions. etc

Bitcoin is always mentioned as a Trojan horse but the reality is that the Trojan horse is the bank.

[rachael9385]

Banks are concerned that crypto can affect their source of income, they are concern that it will affect their business and people won't want to deposit large amount of money in the banks anymore, remember that Banks are very good at using their customers funds to make more money, especially those amounts in fixed accounts locked for a long period of time.

Crypto is eye opening, as banks as made many people believe that interest way is the way to make money off your deposited amount, the longer you leave the money in your account the more you get get some percentage annually, now we all know it's nonsense, crypto gets people to where they wanted to get to, and faster.

Government is worried about a few different things too, they pretend that they are saving the people from a big bubble but that's not true, there is more to their concerns, they control banks and they have no control over Bitcoin because it's decentralized, Bitcoin also brings better ROI than Real estate and co, meaning many lives can change if done right, the poorer people gets the better for the government.

Yes man, banks use people's money to make their own money, and not only that, their transactions are limited and it can be easily accessible, someone can easily access the amount of money in your account (people like customer service), but in Bitcoin wallets your transactions are not limited and no body can access it if they don't have your seed phrase.

It is true that the banks are worried about Bitcoin from their customers and this is one of the reasons why Bitcoin is not allowed in some countries, and the government, too, are also benefiting from the banks. That's why the government is doing everything possible to stop the adoption of Bitcoin, but since Bitcoin is unstoppable, its awareness is still spreading in society. Bitcoin has given a lot of people another chance in society.

[BIT-BENDER]

Banks are concerned that crypto could reduce the use of fiat currency and reduce their revenue from services such as credit cards and loans.
Banks are concerned that crypto could be used for illegal activities such as money laundering and terrorist financing.

I am from a country where government corruption is widely felt in every sector of the country and this has been happening for a very long time now even before the recognition of crypto-currency, and the means by with the government launders money and the countries funds has been through fiat and the banking system not just this but other forms of money laundering has been Carried out using the banking system.

[Dr.Bitcoin_Strange]

It's not for the bank to decide what happens, but rather the government, and if they decide to pass the orders that should be followed. just the way the Nigerian government has decided to restrict crypto transactions in the bank.

Secondly, if the government is concerned about crypto being used for illegal activities like money laundering, could it be that if they put restrictions on crypto currency, money laundering crimes will not be committed through other means? Right from the start, money laundering has been in play, even before crypto was born.

Banks are just centralized traditional financial systems, while Bitcoin is a centralized digital asset that the banks or government are just trying to regulate but I doubt they could be able to do it.

[Vaskiy]

Banks are concerned that crypto could reduce the use of fiat currency and reduce their revenue from services such as credit cards and loans.
Banks are concerned that crypto could be used for illegal activities such as money laundering and terrorist financing.

I am from a country where government corruption is widely felt in every sector of the country and this has been happening for a very long time now even before the recognition of crypto-currency, and the means by with the government launders money and the countries funds has been through fiat and the banking system not just this but other forms of money laundering has been Carried out using the banking system.

This is what happening all around the world. Majority of the money laundered and tax evasion were happening through fiat. Through fiat only illegal transactions and illegal activities were funded. Just to keep people under control, the governments always make false claims on cryptocurrency. It is our responsibility to understand the real fact than just fearing on the statements from government. Slowly few banks have begun to support cryptocurrency investment. Over time similar to fiat we can experience the usage and access to cryptocurrencies.

[AGogi2003]

Banks are concerned that crypto can affect their source of income, they are concern that it will affect their business and people won't want to deposit large amount of money in the banks anymore, remember that Banks are very good at using their customers funds to make more money, especially those amounts in fixed accounts locked for a long period of time.

Exactly, you are saying the truth, they think he will affect their source of income, that is why they don't like crypto transactions, no one wants to leave is money on bank now, everyone needs what to give him profit, because I don't think if you leave your funds in the bank he will increase, they will just debit you for keeping your funds save and hr will be decrease, but crypto investment like Bitcoin you invest your money on it for long term, you will get higher profit.That is why some countries refuse to accept Bitcoin as a form of payment because they cannot control it and cannot collect any tasks. Because Bitcoin has surpassed them, there is nothing they can do, The only thing Bank do for customers is just giving them loans.

[Best-mary]

Banks are concerned that crypto could be used for illegal activities such as money laundering and terrorist financing.

This is false, it's not that easy to use crypto for illegal activity, do you think fiat can't be used for illegal activity? go search in google. Even you use a privacy coin, you still need to trust someone and it's sometime will expose your identity, receiving money through bank will make the sender know your real name.

Banks can use crypto to improve efficiency and reduce costs.

Yes. But since Bitcoin is decentralized, it shouldn't be associated with banks or any other third party intermediary.

I agree with you. Illegal activities these days on crypto will be nearly impossible not now that exchanges are getting their users kyced. Even if you use Dex, the transaction could still be traced. I have a feeling that sooner or later, Dex might do same.

[Blitzboy]

Banks are concerned that crypto can affect their source of income, they are concern that it will affect their business and people won't want to deposit large amount of money in the banks anymore, remember that Banks are very good at using their customers funds to make more money, especially those amounts in fixed accounts locked for a long period of time.

Crypto is eye opening, as banks as made many people believe that interest way is the way to make money off your deposited amount, the longer you leave the money in your account the more you get get some percentage annually, now we all know it's nonsense, crypto gets people to where they wanted to get to, and faster.

Government is worried about a few different things too, they pretend that they are saving the people from a big bubble but that's not true, there is more to their concerns, they control banks and they have no control over Bitcoin because it's decentralized, Bitcoin also brings better ROI than Real estate and co, meaning many lives can change if done right, the poorer people gets the better for the government.

Yes man, banks use people's money to make their own money, and not only that, their transactions are limited and it can be easily accessible, someone can easily access the amount of money in your account (people like customer service), but in Bitcoin wallets your transactions are not limited and no body can access it if they don't have your seed phrase.

It is true that the banks are worried about Bitcoin from their customers and this is one of the reasons why Bitcoin is not allowed in some countries, and the government, too, are also benefiting from the banks. That's why the government is doing everything possible to stop the adoption of Bitcoin, but since Bitcoin is unstoppable, its awareness is still spreading in society. Bitcoin has given a lot of people another chance in society.

It reminds us that Bitcoin's blockchain technology is decentralized and peer-to-peer. In traditional banking, select staff can examine account details, but data protection rules control these interactions.

Bitcoin promises decentralization and autonomy, but sacrifices personal responsibility. If you lose that seed phrase, you cant recover the funds or call customer assistance. Imagine locking your keys in an indestructible vault.

Yes, financial sovereignty and control are government issues that cause regulatory barriers. Many nations are trying to understand and regulate Bitcoin, not just fight it. As society gains information and insight, Bitcoin opinions may change.

[kryptqnick]

If we consider loans an essential function of banks, then yes, cryptos are different. I've personally never use bank loans, so to me, it's not essential. As for savings and money transfers the op mentions, they can be totally done without banks, namely with Bitcoin.
Now, banks being worried about cryptos being used for illegal activities - well, it's not their place to be worried about that. They aren't the law enforcement or policymakers, and there've been huge scandals of very big-scale money laundering and other illicit activities done not just by people who are customers of banks, but by banks themselves, and major ones at that. So they should focus their worries on that.