Why are banks against cryptocurrency?

[Mame89]

The most obvious answer is that with Bitcoin you don't need a bank.

You can make and receive payments all around the world, 24/7, securely and fast, with no middle man, and no permission from anyone.

Banks want to charge fees for holding your money, charge interest for lending your money, make decisions about whether you can or can't use your money, etc.

If people stop putting their money into the banks, and instead start withdrawing it and use Bitcoin instead you would have a bank run.

https://en.wikipedia.org/wiki/Bank_run

Then the banks don't have money to lend or operate and they become insolvent and have to shut down.

That's pretty much it.

Yes that's right. They are afraid of the presence of bitcoin which is growing day by day, many have even adopted it and has now become one of the assets that can save value from inflation.

So this is what makes them hate bitcoin because the government cannot regulate and track it. The government wants to be able to investigate your banking activities if necessary, freeze assets, obtain taxes, and so on. Unlike banks, everything is in their control so they can easily arrange whatever they want.

Since it was distributed, Bitcoin exists in many different locations at the same time. This makes it very difficult for one regulatory body to impose its will across national borders. This means that the government or other third parties are technically not allowed to raid an office and close anything down, let alone confiscate or freeze someone's assets.

[Magic-Money]

Bank are afraid of cryptocurrency, especially Bitcoin precisely, because Bitcoin has been created with a specific number of 21,000,000 total supply, and transparent in every transaction and trade being made, in which our local bank's are not specific and transparent to give actual account and local money keep printing more money, but Bitcoin is not printing/creating more Bitcoin. But rather is maintain the specific figure and that is the major reason why Bank are afraid of cryptocurrency and is highly demand.

[ancafe]

So what I'm ultimately getting out here, is that crypto currency can't go in line with banks. What are your thoughts towards this?

If the Bank is completely against bitcoin then we cannot convert bitcoin to fiat currency through the Bank's services. I think the Bank is not really opposing it but rather limiting it because they are worried that bitcoin will become a competitor and it is not the Bank that is opposing bitcoin but rather the government with its laws. I don't know how it is in your country but we have banking services to convert bitcoin to fiat and even taxes are regulated in such a way.

Every system that has been built will always be maintained by the government, in this case the bank as an institution providing money will think about how this system does not collapse. Banks are controlled by the government, while Bitcoin does not have anyone's control, so the government is worried about the development of adoption that will occur.

[Minor Miner]

So what I'm ultimately getting out here, is that crypto currency can't go in line with banks. What are your thoughts towards this?

If the Bank is completely against bitcoin then we cannot convert bitcoin to fiat currency through the Bank's services. I think the Bank is not really opposing it but rather limiting it because they are worried that bitcoin will become a competitor and it is not the Bank that is opposing bitcoin but rather the government with its laws. I don't know how it is in your country but we have banking services to convert bitcoin to fiat and even taxes are regulated in such a way.

Every system that has been built will always be maintained by the government, in this case the bank as an institution providing money will think about how this system does not collapse. Banks are controlled by the government, while Bitcoin does not have anyone's control, so the government is worried about the development of adoption that will occur.

I agree with you, if banks really hate bitcoin and oppose bitcoin, we will no longer have the opportunity to use bank accounts to buy bitcoin. Just because they warn about bitcoin doesn't mean they hate it, they just want to protect their customers and they are following the law because bitcoin is still not legal in many countries.

Many people are unnecessarily exaggerating about bitcoin saying that banks and governments are afraid of bitcoin. Think how bad things would be if the government actually cracked down on bitcoin, and the clearest example is the Nigerian government banning centralized, p2p exchanges, just those small bans have caused many traders to Investment faces many difficulties. If they really hate bitcoin and punish it more harshly, I think bitcoin's popularity will soon disappear. Don't underestimate the power of government.

[Z_MBFM]

So what I'm ultimately getting out here, is that crypto currency can't go in line with banks. What are your thoughts towards this?

If the Bank is completely against bitcoin then we cannot convert bitcoin to fiat currency through the Bank's services. I think the Bank is not really opposing it but rather limiting it because they are worried that bitcoin will become a competitor and it is not the Bank that is opposing bitcoin but rather the government with its laws. I don't know how it is in your country but we have banking services to convert bitcoin to fiat and even taxes are regulated in such a way.

Every system that has been built will always be maintained by the government, in this case the bank as an institution providing money will think about how this system does not collapse. Banks are controlled by the government, while Bitcoin does not have anyone's control, so the government is worried about the development of adoption that will occur.

I agree with you, if banks really hate bitcoin and oppose bitcoin, we will no longer have the opportunity to use bank accounts to buy bitcoin. Just because they warn about bitcoin doesn't mean they hate it, they just want to protect their customers and they are following the law because bitcoin is still not legal in many countries.

Banks conduct their business through customers' money but when customers invest their money in Bitcoin with the help of banks, the bank will lose assets and their business will be affected. and because Bitcoin is still largely illegal, banks may be against it.  But all in all, if the banks were getting good profit from Bitcoin then they would be right to support Bitcoin instead of against it.

Many people are unnecessarily exaggerating about bitcoin saying that banks and governments are afraid of bitcoin. Think how bad things would be if the government actually cracked down on bitcoin, and the clearest example is the Nigerian government banning centralized, p2p exchanges, just those small bans have caused many traders to Investment faces many difficulties. If they really hate bitcoin and punish it more harshly, I think bitcoin's popularity will soon disappear. Don't underestimate the power of government.

Banks and governments fear Bitcoin because the high volatility of Bitcoin will always destabilize a country's economy if every country uses Bitcoin as FIAT money and if the government keeps Bitcoin as a reserve currency.  And if the bank supports bitcoin then the bank will lose their wealth because the customers will be more inclined towards bitcoin which is more profit from bitcoin than the bank. And even if the bank's money is under the bank's authority, Bitcoin is completely under its own control

[Alone055]

Bank are afraid of cryptocurrency, especially Bitcoin precisely, because Bitcoin has been created with a specific number of 21,000,000 total supply, and transparent in every transaction and trade being made, in which our local bank's are not specific and transparent to give actual account and local money keep printing more money, but Bitcoin is not printing/creating more Bitcoin. But rather is maintain the specific figure and that is the major reason why Bank are afraid of cryptocurrency and is highly demand.

It's not the supply they are afraid of but it's mostly the decentralized nature of it that makes them feel anxious. They know they will start losing control over people and their finances if they start using Bitcoin and other cryptocurrencies more often because their customers will take out their money from their custody and put it in cryptocurrencies and they can't digest that or let that happen with ease, hence, they keep trying to show Bitcoin and cryptocurrencies in a negative light and tell you that they are either illegal or are used for wrong purposes.

What we need to do is do what we are doing without letting them know about it. You don't need to disclose the fact that you are involved with cryptocurrencies or posses Bitcoin and make transactions related to it because they can create issues out of these things, but they wouldn't know if you know how you can keep your things private. 

[Strongkored]

Bank are afraid of cryptocurrency, especially Bitcoin precisely, because Bitcoin has been created with a specific number of 21,000,000 total supply, and transparent in every transaction and trade being made, in which our local bank's are not specific and transparent to give actual account and local money keep printing more money, but Bitcoin is not printing/creating more Bitcoin. But rather is maintain the specific figure and that is the major reason why Bank are afraid of cryptocurrency and is highly demand.

Is it true that banks are afraid of Bitcoin? Let's say it's true that banks are afraid of Bitcoin but I'm sure it's not because of the limited number of Bitcoins but more about the opportunity that people will start using Bitcoin as a means of payment for online transactions and so on for saving, but actually we can never really just use Bitcoin because in real life it's fiat is the one that is becoming the most used and it requires banks even people who invest in Bitcoin the ultimate goal is to make their money in fiat value increase, isn't it like that? so I doubt banks are afraid of Bitcoin, and unfortunately currently Bitcoin is considered more of a safe heaven than a means of payment because those who own Bitcoin can sometimes feel a loss when they see the price go up but they have sold it at a cheaper price.

[fuguebtc]

As I said, bitcoin has never had the ability to threaten banks or governments nor was it created by satoshi to create that hatred. Initially, governments and banks were not friendly to bitcoin, simply because bitcoin was a new asset that was highly volatile. They need to be wary of it because they do not know whether it will bring benefits or harm to them and the national economy. But as things gradually become clearer, they feel that it is not as dangerous as they were once wary of, so it is understandable that they gradually become friendly with it. Everything takes time to adapt to, just as many of us were skeptical about bitcoin before trusting it, so why do we think so poorly of banks?

Banks ARE the enemy. They're the main reason why the economy went downhill back in 2008. History repeats itself as one crisis emerges after the other. Satoshi created Bitcoin because of banks' malpractices. He was a cypherpunk with libertarian ideals. Do you think he would've made Bitcoin if the mainstream economy was going well? I think not. It's why so many banks are against Bitcoin and its variants. At least, in the early days.

If you think that banks are the enemy and they are the main cause of the financial crisis and economic recession. Are you sure and based on what guarantees that if bitcoin is deployed globally, it can eliminate inflation, crisis and recession of the global economy? Could the global economy be easily fixed if we accepted bitcoin? This reminds me of those delusional people who said bitcoin would be able to help alleviate poverty if it were adopted globally,  .

Now that "Wall Street" is in the game, things are starting to change. BTC is being acquired in mass by institutional investment companies. If things keep up, it will become utterly-centralized (even though network consensus is done by miners, not economic holders). Banks should be more than happy with how Bitcoin is doing now. Even a staunch critic like JP Morgan is changing its view towards BTC. If the pioneer cryptocurrency was decentralized as it was in the early days, do you think banks will support it? I guess not. People are missing the big picture of the ETFs. It's not about making money, but rather controlling everything. I sure hope we come to our senses before it's too late. With CBDCs on the way, don't expect banks to go anywhere soon.

I don't deny that an ETF will make bitcoin more centralized, but banks are just a business and what they seek is profit, so why would they accept bitcoin if it doesn't bring benefits , profit for them? Just like you, if bitcoin does not bring you benefits or profits, will you protect it and invest in it ? I bet you won't either.

[ultrloa]

Bank are afraid of cryptocurrency, especially Bitcoin precisely, because Bitcoin has been created with a specific number of 21,000,000 total supply, and transparent in every transaction and trade being made, in which our local bank's are not specific and transparent to give actual account and local money keep printing more money, but Bitcoin is not printing/creating more Bitcoin. But rather is maintain the specific figure and that is the major reason why Bank are afraid of cryptocurrency and is highly demand.

Is it true that banks are afraid of Bitcoin? Let's say it's true that banks are afraid of Bitcoin but I'm sure it's not because of the limited number of Bitcoins but more about the opportunity that people will start using Bitcoin as a means of payment for online transactions and so on for saving, but actually we can never really just use Bitcoin because in real life it's fiat is the one that is becoming the most used and it requires banks even people who invest in Bitcoin the ultimate goal is to make their money in fiat value increase, isn't it like that? so I doubt banks are afraid of Bitcoin, and unfortunately currently Bitcoin is considered more of a safe heaven than a means of payment because those who own Bitcoin can sometimes feel a loss when they see the price go up but they have sold it at a cheaper price.

For sure its not the case where they are really afraid with bitcoin since maybe they are just following the orders of the government. For sure those oligarch holding these institutions would surely adopt this changes if the government would allow them but since there's a that maybe prohibit them to accept due to some risky or illegal things like money laundering then they discourage people to use this to transact on their companies.

Maybe people said that bitcoin is safe haven for them is just acting like being so obsessed of bitcoin but if they use it according to what they need on it for sure that they will not think about any excessive things and focus on other things that might valuable to them.

[kotajikikox]

What we need to do is do what we are doing without letting them know about it. You don't need to disclose the fact that you are involved with cryptocurrencies or posses Bitcoin and make transactions related to it because they can create issues out of these things, but they wouldn't know if you know how you can keep your things private. 

People who are involved in cryptocurrencies are the ones most obsessed with keeping privacy and being anonymous in all platforms as possible. Especially in times like this when our information can be easily gathered, shared and used against our will.

In a case where the government has some ill intent about people who use crypto, I do suggest that we all try to keep it a secret. Not just the government but people in general since you never know the kind of harm you can encounter.

[coinerer]

What we need to do is do what we are doing without letting them know about it. You don't need to disclose the fact that you are involved with cryptocurrencies or posses Bitcoin and make transactions related to it because they can create issues out of these things, but they wouldn't know if you know how you can keep your things private. 

People who are involved in cryptocurrencies are the ones most obsessed with keeping privacy and being anonymous in all platforms as possible. Especially in times like this when our information can be easily gathered, shared and used against our will.

In a case where the government has some ill intent about people who use crypto, I do suggest that we all try to keep it a secret. Not just the government but people in general since you never know the kind of harm you can encounter.

Bank is a centralized platform where there is a central bank along with every bank to control everything, so here no one can keep his personal information of income source etc. secret from the authorities. But crypto can be used in a completely anonymous manner. which is why most countries' governments and banks are both against crypto. Banks have never liked anonymity and don't seem likely to in the future. so it is only natural that banks are always against crypto

[stadus]

So what I'm ultimately getting out here, is that crypto currency can't go in line with banks. What are your thoughts towards this?

If the Bank is completely against bitcoin then we cannot convert bitcoin to fiat currency through the Bank's services. I think the Bank is not really opposing it but rather limiting it because they are worried that bitcoin will become a competitor and it is not the Bank that is opposing bitcoin but rather the government with its laws. I don't know how it is in your country but we have banking services to convert bitcoin to fiat and even taxes are regulated in such a way.

Every system that has been built will always be maintained by the government, in this case the bank as an institution providing money will think about how this system does not collapse. Banks are controlled by the government, while Bitcoin does not have anyone's control, so the government is worried about the development of adoption that will occur.

Its obvious that the government will not favor with bitcoin adoption because once it happens, the demand of using banks will be lessen since majority of the people will turn into bitcoin since they can be their own bank. And because of that, those government-owned banks might be put at risk, and might not be continue to operate if they are no longer making a good revenue. That’s why as much as possible, the government will use its power if not to ban bitcoin, then contradict or won’t approve its adoption.

[Abiky]

I think it is because of decentralization which banks cannot gain control as we all know that banks are centralized and are regulated which crypto doesn't not unless it is purchased in a SEC compliant exchanges that was regulated. Competetion would be another reason as well.

Well, banks don't see much of a threat on Bitcoin as they did back in the early days. The number of centralized exchanges dominating the market, and the recent spot ETFs approval are moving BTC away from its core principles. Banks should be more than happy now that "Wall Street" is in the game. The whole purpose was to eliminate the middleman, but it seems we're going one step backwards. Satoshi didn't want this.

Unfortunately, human greed has led us to a point where we are right now. The vast majority of people are into Bitcoin and other cryptocurrencies to make money. NOT because they believe in the tech. With CBDCs poised to rule the world, we can say bye-bye to the crypto revolution for good.

[khalidkhan82118]

I think it is because of decentralization which banks cannot gain control as we all know that banks are centralized and are regulated which crypto doesn't not unless it is purchased in a SEC compliant exchanges that was regulated. Competetion would be another reason as well.

Well, banks don't see much of a threat on Bitcoin as they did back in the early days. The number of centralized exchanges dominating the market, and the recent spot ETFs approval are moving BTC away from its core principles. Banks should be more than happy now that "Wall Street" is in the game. The whole purpose was to eliminate the middleman, but it seems we're going one step backwards. Satoshi didn't want this.

Unfortunately, human greed has led us to a point where we are right now. The vast majority of people are into Bitcoin and other cryptocurrencies to make money. NOT because they believe in the tech. With CBDCs poised to rule the world, we can say bye-bye to the crypto revolution for good.

Do you think there's any way Bitcoin can get back to its original principles despite the current trends?

[kro55]

~snip~
Are you sure about this? Are you using a bank to buy bitcoin and are you using bitcoin to pay your daily bills? And how many relatives and friends abroad do you have who use bitcoin to transfer money? As long as fiat currency remains the world's official currency, there will be no way for you to survive just owning bitcoin. Not to mention, bitcoin is not free and to own it you need money or a bank account to buy and sell bitcoin.

In addition, banks are not only places to deposit savings and transfer money abroad, but also provide many services such as insurance, mortgages and loans, which are probably their strengths. Can Bitcoin provide lending services to businesses and entrepreneurs? Don't be naive to think that bitcoin can replace the role of banks.

Bitcoin is not used in mainstream, but you can definitely get a job that pays in Bitcoin today.

Are you talking about the signature campaign on our forum? Besides the signature campaign, are there any jobs that pay in bitcoin that any worker can easily find and join? And if you stop participating in signature campaigns, are you sure you'll find another job that accepts bitcoin payments?

You can also pay in Bitcoin for certain things. We are in the process of potentially creating a Bitcoin world.

At the moment there are companies that take your Bitcoin and they process your bills with fiat, so in a way you can live today with Bitcoin only. For example check out this for Australia: https://www.livingroomofsatoshi.com and this for Canada: https://bylls.com

Same with lending: https://ledn.io

Yes, there are already some stores that accept bitcoin payments but the question is how many such stores are there and when will we see a world that completely uses bitcoin as a means of payment, 100 years or 1000 years from now?
As I asked before, are you using banks to buy bitcoins and have you ever tried to stop using banks and just use bitcoins for your life?

You gave me a link to a company that accepts bitcoin collateral loans, but do you guarantee that it will be as safe as a bank? And do you realize that this is a private and centralized company, they are using bitcoin as collateral rather than a service provided by bitcoin itself?

[JacksonFmessayah]

This is my personal opinion,maybe it could be wrong,maybe could be right, bitcoin tends to conflict with the foundationof the existence of a central bank. Different from several other crypto asset, bitcoin carries the blockchain concept which is decentralized, so it cannot be controlled by any authority.

[goldkingcoiner]

Banks are against cryptocurrency for the same reason Blockbuster was against online streaming services. It destroys their business model and makes them redundant. And that is fine. That is a good thing because it is a kind of evolutionary step to the next best technology. And in the case of Bitcoin, it is better to be your own bank than to let a third party hold your money for you and demand a ransom fee for doing so. And they also get to freeze your account for basically almost any reason and withhold your money from you.

[shogun47]

- snip

Your general stance that banks are against cryptocurrency doesn't hold true anymore. It was the case when they thought that by discrediting Bitcoin, it would either give them more time to get ready to embrace it or to use their lobbying power on governments to achieve bans in the most important economies. But it didn't work.

That's why they are off to the next stage: embrace cryptocurrencies and offer it as one of their investment products or offer custodial services or something. Or use it a speculative instrument themselves.

The really bad talk on all fronts from the banking or financial sector is quite over, isn't it? I remember times when literally no bank had an at least neutral opinion on the technology. These days you don't read these unsubstantiated attacks anymore.

Times have changed quite a lot, but that doesn't mean Bitcoin is about to have a better future. Actually any bank embracing it might be another point of centralization for the network. If people use banks to get into Bitcoin, it is not how it was initially intended to be used.

[oktana]

I don’t think banks are the ones against Bitcoin. It should be the government that is against Bitcoin because they don’t have control over it. The banks actually report to the government and because Bitcoin isn’t doing the same, they don’t like it. Because starting from tax and other things they’d have implemented or rule they’d have set, they can’t. Bitcoin takes out the middle man and the government can’t do nothing about it, no matter much they dislike it.

The question is s, who's the bank and who's the government? They are same set of people under the financial system and their interest, policies and objective are twined. The banks are more like an agents of the government through which the government can use to bar and frustrate any other rising financial system that tend to be of a treat to their power of control and bitcoin is one of  such with it's decentralized protocol. Which makes puts me in the right by referring the bank as a middle too.

Nonetheless the bank and the government are not the same. Understand the difference that the bank is not owned by the government. There are many private owner and they don’t have any personality in the government. However, the government under policies use the bank to do and get whatever they want. And that’s because banks follow policies which are set by the government. So government may use the bank as a tool but they are not one.

Please correct me if I'm wrong. As far as I know, there are many private banks, but in order to operate, they must go through and be managed by the central bank, and the central bank is directly managed by the government. So it can be said that the person behind the bank is the government. To me, banks are one of many tools that governments use to maintain the economy and control their people.

~~~

Try to understand what I am saying. The government is behind the banks and there’s no doubt in that. But it isn’t like the bank was designed to be used by the government. It is through regulation by the government that they have access. So even if you open your bank today, you have to be regulated, and that’s how the government gets a hold of all infos.

[Samlucky O]

What do you expect in a competitive market? In as much as bitcoin is important, fast and easy to use with the potential of volatility, people will still criticized it. Expecially those other centralised financial sector . Whenever something is the opposite side or version of the first one,  it becomes an opposing force. just like the two name are the opposite meaning of each other which are "centralized" & "decentralized" you wouldn't expect centralised financial sector like bank to be happy about decentralized when they know that Bitcoin or crypto is what they never emergined to have existed. Though if crypto would be in their control and they can make profit from it they will have accepted it and used it as ann alternative to there centralised system. But since the blockchain technology doesn't support to be controlled by some entity, it becomes difficult to accept and they Start fighting against it to be an anti centralised.