Why are banks against cryptocurrency?

[stomachgrowls]

Simply put, they don't want their users see any bigger profits than their existing investment products can give.


Those, typically funds of funds with sky-high management fees and hidden costs are pretty laughable once you know what to compare to. Still, they're the product banks have the highest profit margins on. Those margins gotta be defended at any cost.

Some more modern banks allow individual stock portfolios, but still, with extreme costs related to a broker. I'm talking about 10 USD plus 0.3 to 1% trading and currency conversion fee for example. (I'm from Europe, this is pretty much the standard pricing here)

Imagine, banks would introduce in-house cryptocurrencies with similar trading fees. Maybe drop the fix trade fee, keep the percentages, even 1% is 100 times worse than an average crypto exchange. Crypto users are not accustomed to these rip-offs, and banks will never be willing to drop down to 0.01%, I can assure you

Banks are profit machines designed to take your money, not make it.

On addition...

Come to think that if people would be having that enough income or profits then there's no one would really be trying out to get those loans and amortizations on which banks offering, on which means that
it would be a less revenue or money making for them. Also, banks are institutions which are highly regulated by the government. If on what government hates, then they would definitely be hating it too.
Here in our country on which it is really that a bit shocking or surprising that there are banks offering or allowing crypto transactions or even allows incoming or outgoing transactions without questions asked
but just as expected on the moment that you would be able to hit up those threshold then you would really be that definitely be ending up on being asked on why it is really that too big.
Where it do came from? DANG, it was a trap then those funds are locked.

This is why its not really surprising that they would really be hating crypto that much. There's no way that they could control people about their funds and with having that full transparency
on which know that this is something that where crypto is really known for and been much supported. Government doesnt really like crypto no matter what
since it is really that against on what they do like on which on having that full control which it would be understandable.

[uneng]

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?

Not only it can go in line with banks, as it's already happening at many banks around the world. Here in my country we can already invest in cryptocurrencies through our traditional banking apps, so the bank is a middleman between you and cryptocurrencies. The problem is that you can't cashout your crypto funds from the platform, so the bank has it on their hands the whole time, and as we know, not your keys, not your coins... It's definitely a big issue, although banks don't have any problems in offering this investment opportunity for their customers.

In fact, banks were clever to offer crypto investment opportunities while keeping all the funds held under their possession, so at same time they embrace the advantages of adopting cryptocurrency, they also totally kill the characteristic they most dislike: decentralization.

After all, it seems perfect for them, while for average investors, it's a big setback, since they give up on the main aspect of investing in cryptocurrencies, which is the fact investors can hold their own money on their own wallets without the risk of having their money seized by a central authority.

[Ryu_Ar1]

It is wrong to say the bank is not against bitcoin because if you refer to what I experienced a few years ago when I worked at one of the private banks they clearly did not like the bitcoin scheme and indirectly provided a doctrine that there were indeed differences in understanding that were different between the bank system adopted by bitcoin which of course this made a competition because even though the purpose of bitcoin was not as a competitor to the bank but still there would be such an assumption.

No doubt I also previously hated bitcoin because I was part of the bank even though I was only a small worker there so it was wrong to say the bank did not like and oppose it, it's just that they also couldn't do anything about it because all regulations ultimately did not come from the bank but from the government and the bank could not take care of other problems such as bitcoin because in the end they also had their own duties.

In this case everything refers back to the government but why the government is silent without any more treatment because it goes back to the main problem where bitcoin is currently decentralized and forever like that so the government will not be able to interfere further except maybe stigmatizing and making some buzz so that bitcoin is considered bad but that also ultimately does not have a big impact on bitcoin.

[Gaza13]

As said before, the main reason for the banks to hate Bitcoins is the decentralised nature of the coin. Due to the decentralised nature of the coin, the government neither the bank can keep a track of the transactions that is made for crypto. Due to this decentralised nature of the coin, the government is unable to impose tax on it, for which they are making Bitcoins illegal. Now the banks follow the government, hence if the government is not supporting the coin, then how can banks will do it. So if the Bitcoins are not legal in your country, then definitely banks will also not support you on Bitcoins or crypto transactions.

I think you have the wrong bank and the government can track it if someone makes a transaction on an exchange in the market and tax it on them. In the current era of digitalization, Bitcoin has emerged as a financial revolution, but central banks or traditional banks feel threatened. The reason is that not a single asset at that time existed without being controlled by the government or central bank and how bad the fiat system run by banks has been, many people don't know about this. They run a big business that has spread all over the world.

In my opinion, central banks or traditional banks only pretend behind the government so that people really believe in them, in reality they are the real robbers, they eat or reduce what assets we have through inflation and so on.

[Wapfika]

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?

Not only it can go in line with banks, as it's already happening at many banks around the world. Here in my country we can already invest in cryptocurrencies through our traditional banking apps, so the bank is a middleman between you and cryptocurrencies. The problem is that you can't cashout your crypto funds from the platform, so the bank has it on their hands the whole time, and as we know, not your keys, not your coins... It's definitely a big issue, although banks don't have any problems in offering this investment opportunity for their customers.

This offer from banks to invest on crypto is very popular nowadays since Paypal have this kind of feature too but users is just buying virtual crypto currency and not the real currency since you already that you can’t withdraw it. It’s only a proxy cryptocurrency which all users investing on the price of crypto and not on the real crypto.

All the purchased on that bank app is not directly affecting crypto price. I believe it’s way of the bank to still be relevant for crypto investors by offering a fake cryptocurrency for their customers just to keep them using their service.

[Richbased]

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.

Banks are against cryptocurrencies and Bitcoin adoption because if everybody switches to Bitcoin will the banks exist? Can you tell me that since the invention of Bitcoin that ain't there people who are no longer interested in keeping their money with the banks but rather prefer to use the money to buy Bitcoin and hold it instead of saving it with the bank.

Banks and the government works hand in hand so when we are saying anything concerning money the government and the banks are included because it's still same banks that keeps the income of workers and pays when the government gives an order and banks also generates revenue for the government so they are literally same people that doesn't want Bitcoin and other cryptocurrency to be adopted because since it's decentralized there would be no need for the government to seek for their percentage in transactions since they are not part of it but however, they can still tax centralized exchanges and other platforms used for p2p since they are converting their Bitcoin to the country's currency because the personal data they get from people for KYC verifications were being issued by the government.

[Ale88]

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.

Banks are against cryptocurrencies and Bitcoin adoption because if everybody switches to Bitcoin will the banks exist? Can you tell me that since the invention of Bitcoin that ain't there people who are no longer interested in keeping their money with the banks but rather prefer to use the money to buy Bitcoin and hold it instead of saving it with the bank.

Banks will continue to exist because let's be honest, we'll never have a fiat-free society. What we need to aim for is having bitcoin as a reliable alternative to fiat currencies and banks. Starting these wars banks against cryptocurrencies for me is pointless because they can perfectly coexist and people will have the choice to use one service or the other.

[Ben Barubal]

     Maybe if we put ourselves in the position of bank owners, we will probably be against cryptocurrencies right away, especially if we don't believe in the potential of crypto or bitcoin. Then literally, banks are a regulated business category, while cryptocurrency and bitcoin are not. 

     So, it just means that what is centralized can never be decentralized. But the bank can adopt the cryptocurrency if the owner of the bank himself wants to. Because UnionBank did that, of which this is just one example. If Unionbank did it, it means other bank institutions can do it too.

[mindrust]

Some banks are against crypto bank we can't say all of them are. They still let me send money to crypto exchanges at least. If they were against crypto, they wouldn't let me do that. Ripple also have some partnerships going on with some banks as far as I know. I think most banks acknowledged crypto at this point so I can't agree with your post really. At last that's how it is in my country. I've never seen a bank that didn't let me send money to an exchange here. They simply don't care. Banks can't do shit about crypto anyway. The government make the law and the banks follow it. As long as crypto isn't illegal, nobody cares if banks like or dislike crypto.

[Abu-Naim]

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?

Forget all these stories, banks can never like Bitcoin and cryptocurrencies for some reasons:

Banks are centralized system that monitors people’s wealth and keep their wealth in their custody for long and give directions on how to withdraw them when you need them; while Bitcoin is decentralized and it is an open system in the blockchain where everyone can track any transaction and it also gives financial freedom where you will not depend on anyone to withdraw their money.

Banks wants to use our money for their investment while holding Bitcoin in a decentralized wallet will give you freedom and you will be your own bank and control your wealth yourself.

[Samlucky O]

All what you have said is incredibly fine and truth and nothing bad about it. The reason why banks is against Bitcoin or Cryptocurrency is that bitcoin is everything bank was not. Bank operate on a centralised system why Bitcoin operates on decentralized system. Bank operate on paper work while bitcoin deals on phrase and wallet which means you can stack any amount of bitcoin in any wallet for as long as it can last, without having a paper agreement to open an account. But with Your pass prase you have a total access to your asset without a paper Work or any third party agreement. Bitcoin is a volatile assets which appreciate in value in due time. but the money  kept in bank D
Are not volatile as bitcoin and also depreciate in value over time do to inflation. So there are many important in bitcoin that is more profitable compeard to bank. That is why banks hate cryptocurrency (bitcoin) because people are gradually investing in bitcoin instead of bank and it's taken away their customers. These are the few things I can point out for now.

[Vaskiy]

Banks are against cryptocurrency for different reasons. The most important thing is revenue. In the past, it used to be a tough task to send huge transactions through the bank as they required more procedures to be followed. Now people find ease through cryptocurrency transactions, and for the same transaction, the banks charge huge amounts as commission and transaction charges. With cryptocurrency, this has been made easier, and the revenue of banks has been affected. Some banks have understood the reality and made themselves adapt to the growing technology. A similar move could be more effective than taking a stand against cryptocurrency.

[kryptqnick]

Banks are not enemies of cryptos per se. Cryptos hypothetically offer an alternative to banks, but practically banks still have a major edge over cryptos. They offer people support and take away some responsibility, which people often enjoy. They may or may not offer lower fees. Also, people can actually use debit cards widely, whereas cryptos are barely accepted in practice. Moreover, credit cards and ability to take loans are essential for some people, and this is something that banks can offer while cryptos can't.
Banks can start accepting cryptos, and this doesn't have to be a battle.

[amihada]

banks cannot accept bitcoin as long as the country has not legalized it, so if the government legalizes bitcoin then banks can accept bitcoin, for example in my country bitcoin is not legal as a medium of exchange if a bank accepts bitcoin then the bank will be subject to legal sanctions.

[Ojinga]

Simply put, they don't want their users see any bigger profits than their existing investment products can give.


Those, typically funds of funds with sky-high management fees and hidden costs are pretty laughable once you know what to compare to. Still, they're the product banks have the highest profit margins on. Those margins gotta be defended at any cost.

Some more modern banks allow individual stock portfolios, but still, with extreme costs related to a broker. I'm talking about 10 USD plus 0.3 to 1% trading and currency conversion fee for example. (I'm from Europe, this is pretty much the standard pricing here)

Imagine, banks would introduce in-house cryptocurrencies with similar trading fees. Maybe drop the fix trade fee, keep the percentages, even 1% is 100 times worse than an average crypto exchange. Crypto users are not accustomed to these rip-offs, and banks will never be willing to drop down to 0.01%, I can assure you

Banks are profit machines designed to take your money, not make it.

don't say that but their people who are profiting from the banks, but I can only support you is that banks won't want to approve crypto currency to link up with them. Cause they know more of the profit will surely go to Bitcoin on the process and much customers will likes to trade with Bitcoin, one thing is that the government have already seen where it's heading and they're afraid that if they regulate crypto currency and approves it with the central banks. Their will be lose to them but for my opinion that's the more profitable the government will surely have, okay for an example if the banks are paying tax like 2.0% then definitely crypto currency will pay more than that because they have more source then the banks. Maybe they might be paying like 6.0% in this case the government are profiting from both but they are scared of fraud or scams, just because of their so much platforms and investors everywhere.
On addition...

Come to think that if people would be having that enough income or profits then there's no one would really be trying out to get those loans and amortizations on which banks offering, on which means that
it would be a less revenue or money making for them. Also, banks are institutions which are highly regulated by the government. If on what government hates, then they would definitely be hating it too.
Here in our country on which it is really that a bit shocking or surprising that there are banks offering or allowing crypto transactions or even allows incoming or outgoing transactions without questions asked
but just as expected on the moment that you would be able to hit up those threshold then you would really be that definitely be ending up on being asked on why it is really that too big.
Where it do came from? DANG, it was a trap then those funds are locked.

This is why its not really surprising that they would really be hating crypto that much. There's no way that they could control people about their funds and with having that full transparency
on which know that this is something that where crypto is really known for and been much supported. Government doesnt really like crypto no matter what
since it is really that against on what they do like on which on having that full control which it would be understandable.

[mirakal]

It is wrong to say the bank is not against bitcoin because if you refer to what I experienced a few years ago when I worked at one of the private banks they clearly did not like the bitcoin scheme and indirectly provided a doctrine that there were indeed differences in understanding that were different between the bank system adopted by bitcoin which of course this made a competition because even though the purpose of bitcoin was not as a competitor to the bank but still there would be such an assumption.

No doubt I also previously hated bitcoin because I was part of the bank even though I was only a small worker there so it was wrong to say the bank did not like and oppose it, it's just that they also couldn't do anything about it because all regulations ultimately did not come from the bank but from the government and the bank could not take care of other problems such as bitcoin because in the end they also had their own duties.

In this case everything refers back to the government but why the government is silent without any more treatment because it goes back to the main problem where bitcoin is currently decentralized and forever like that so the government will not be able to interfere further except maybe stigmatizing and making some buzz so that bitcoin is considered bad but that also ultimately does not have a big impact on bitcoin.

I myself has already experienced this. Months ago, I was in a bank trying to open an account, but when they found out that one of my sources of income is from bitcoin investment, they really become honest with me that if ever unusual amount of deposits will be seen in my account, they’ll close the account with prior notice. So from there, I realized that banks are not actually friendly with bitcoin, even if you are putting high amount of deposits in their bank. Although it’s not the bank that can be totally blame here, but knowing banks are slaves of the government, still I end up hating that bank’s policy that’s too unfair for bitcoin.

[Viscore]

banks cannot accept bitcoin as long as the country has not legalized it, so if the government legalizes bitcoin then banks can accept bitcoin, for example in my country bitcoin is not legal as a medium of exchange if a bank accepts bitcoin then the bank will be subject to legal sanctions.

Banks only follow what the government set policies and rules, once they fail, these banks will be put in sanction and stop their operation. So if you are a co-owner of a bank, you will definitely won’t let it happen and have no choice but to abide with the government rules and regulations for banks. It’s not actually the banks that are in opposition here, but obviously the centralized government who also aim to make bitcoin centralized in order to be legalized.

[Belarge]

banks cannot accept bitcoin as long as the country has not legalized it, so if the government legalizes bitcoin then banks can accept bitcoin, for example in my country bitcoin is not legal as a medium of exchange if a bank accepts bitcoin then the bank will be subject to legal sanctions.

Developed countries have started accepting Cryptocurrency but the developing ones are sticking to fear of bitcoin surpassing their general fiat currency. We're merely citizens and abide by the law passed down by the government, we can only murmured and protest in scenes that's not favorable to us. Cryptocurrency is one of the solid projects and we should never underestimate the space because it have evolved with more opportunities to make everything run smoothly on our ends. Banks works hand in hand with the government and will everything according to the laws passed down by the country government.

[letteredhub]

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.

[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.