Why are banks against cryptocurrency?

[tranthidung]

Governments are using the banks, infact the banks are governments outlets of control which they use as an agent or tool to have people still round themselves with the depemding on governments for their life's. personally I hate control especially by the governments (group of cartels that don't want the ordinary man to be successful), or reach the next social status.

There are millionaires and billionaires before Bitcoin existence so governments and banks don't prevent people to get rich. People don't like governments and central banks because they want freedom and privacy. They dislike governments and banks not because they are poor, I have to say this.

Rich or poor, we all want freedom and privacy, it's most common demand of human as basic human rights.

With CBDCs, governments will be able to trace your personal finance and money movements but I believe that it will be a new trend, in all countries. It's only different among countries in when, sooner or later, governments will do this with their CBDCs.

[Sakanwa]

(6) HOW DOES CRYPTOCURRENCY AFFECT THE BANKS?  In my own opinion, cryptocurrency have had a profound impact on traditional banking. By challenging the status quo and disrupting long-est abolish systems, their decentralized nature, cost advantages, and increased accessibility have implications for both individuals and financial institutions.

Ask yourself as a business man will you happy when new competition comes up?

Banks will traditionally be against anything that has the potential to affect their business. Traditional banks have been against even fintechs because they reduced their customer base, cryptocurrency has the ability to also affect the customer base of these banks that is why they are against it.

but I hope they are aware that crypto currency mean no harm to them, for me no matter the traditional something banks should take their pride and collaborat with Bitcoin. Because it's for their own good but all I know is that it's just the government that keeps the central banks not to work together. And if the government allows crypto to work with the banks their incomes won't be like normal was any more. That's why some countries don't want crypto to be Centralized.

[teamsherry]

I hardly see banks in any competitions with bitcoin, banks have a role of circulation of fait money and I know that many banksay already be anonymously invested into some crypto project and even bitcoin and its not as tho bitcoin can replace fait as the government approved medium of exchange, IMO bitcoin is here for something different than to compete with banks.

[JusticeSolus]

Banks are against bitcoin/crypto because it makes them obsolete.  It is as simple as that, and anything else that needs to be explained is extraneous.

-They want to hold your money.
-bitcoin/crypto lets you hold your own money.

[Obari]

(6) HOW DOES CRYPTOCURRENCY AFFECT THE BANKS?  In my own opinion, cryptocurrency have had a profound impact on traditional banking. By challenging the status quo and disrupting long-est abolish systems, their decentralized nature, cost advantages, and increased accessibility have implications for both individuals and financial institutions.

Ask yourself as a business man will you happy when new competition comes up?

Banks will traditionally be against anything that has the potential to affect their business. Traditional banks have been against even fintechs because they reduced their customer base, cryptocurrency has the ability to also affect the customer base of these banks that is why they are against it.

Personally I think the over hype on crypto is what is actually giving it this much hatred and looking from some obvious points, you’ll get to realize that, bitcoin and cryptocurrency wouldn’t really thrive properly without without our local banks and this is because, we still need this local or better put traditional banks to complete a regular transaction atleast in a country like mine.
Bitcoin and cryptocurrency still has a very long way to go for it to stand independently in a country like mine because, most of the local transactions still require fiat to complete a transaction successfully and since cryptocurrency and bitcoin precisely isn’t in a physical form yet, it might be difficult to run a smooth trade in a country  were we still have a lot of petty traders who don’t even own a smart phone talk more of operating one and facing the whole rigorous processes of bitcoin transactions and safety.

[DegenLite]

FIRST WHAT'S CRYPTO CURRENCY? A digital currency in which transaction are verified and records maintained by a decentralized system Using cryptography, rather then by a centralized authority. The crypto currency are not centralized authority, so banks don't allowed them. Which are characters
in 6 ways.

 (1) SO WHY BANKS ARE REALLY AGAINST CRYPTOCURRENCY? Cause the volatility of cryptocurrency markets are concerns over security and regulations. They've made many banks cautious about involvement in the crypto space. Some banks have even banned the use of cridit cards for purchasing cryptocurrency, reflecting their hesistancy to embrace the emerging technology full. If only the cryptocurrency are ready to make a good terms with the banks.

(2) AND WHY DOES CRYPTO CURRENCY DISRUPT BANKING AS WELL? First from the Centralized to Decentralized finance. The cryptocurrency operates on Blockchains, distributed ledger that records transactions across a vest network of computer. This erases the need for central authorities , creating a more open and transparent financial system. And this also causes the risks for banks.

(3) CRYPTOCURRENCY RISKS FOR BANKS?  Risk of fraud and scams among crypto-asset sector participants. Legal uncertainties related to custody practice, redemption, and ownership rights, some of which are currently the subject of legal processes and proceedings. And this lead to why they aren't accepted in banks.

(4) WHY IS CRYPTO NOT ACCEPTED IN BANKS? The main reason banks do not accepted Bitcoins as legal tender, is because they aren't backed by a central authority. Such as a government or central bank, unlike traditional currencies, Bitcoin is not regulated or guaranteed by any third party. And this will also make the banks to get scared of linking up with crypto currency.

(5) THE REASON WHY BANKS ARE SCARED OF BITCOIN? Perhaps the most existential threat Bitcoin poses to banks, is because the potential to render traditional banking systems obsolete. As more Individuals and businesses adopt Bitcoin and the cryptocurrencies for their financial transactions, the need for traditional banking services could diminish. And it gonna affect the banks increases accessibility.

(6) HOW DOES CRYPTOCURRENCY AFFECT THE BANKS?  In my own opinion, cryptocurrency have had a profound impact on traditional banking. By challenging the status quo and disrupting long-est abolish systems, their decentralized nature, cost advantages, and increased accessibility have implications for both individuals and financial institutions.

In December 2022, the Basel committee on Banking Supervision (BCBS) announced a new standard for banks which sets a limit of 2% on crypto reserves, defines how to classify cryptocurrencies and makes provision to minimize the risks associated with cryptocurrency exposure.

https://www.google.com/search?client=ms-opera-mini-android&sca_esv=8ffd5b3fe64f0225&channel=new&q=Cryptocurrency+risks+for+banks+2021&sa=X&ved=2ahUKEwjdqoux45-GAxXrgf0HHc92BmwQ1QJ6BAgEEAY.
Click on the link to no know.

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?

 Bruhh it's almost getting worse and worse this days the hate cryptocurrency is getting from banks, I don't see a future where banks will agree to crypto unless there is a way they can make money off it IMO

[GbitG]

I think nowadays people love to freedom. So therefore, I believe that many people around the world are getting away from the Central authority and their businesses are slowing or declining instead of surge with time. Thus far as I can tell, for this reason many Bank have become anti-Bitcoin. Because the banking sector depends on the government and the government has the same idea that people should not be given a free hand like decentralization, because in a decentralized ecosystem no one can control you to do this or not do that etc. So my opponion is that there is only one reason why banks do not accept Bitcoin as a currency and that is freedom of privacy.

[Wakate]

I hardly see banks in any competitions with bitcoin, banks have a role of circulation of fait money and I know that many banksay already be anonymously invested into some crypto project and even bitcoin and its not as tho bitcoin can replace fait as the government approved medium of exchange, IMO bitcoin is here for something different than to compete with banks.

There I no way banks can compete with cryptocurrency which is one of the reasons why making banks are trading cryptocurrency because they believe that it is one of the fastest way to make money when it comes to investments. Banks are really cashing out from crypto with customers fund and some many of them are ignorant of it. When customers put their funds in the bank for a certain period of time, banks are using that money to give loan and also trade which is very easy for them and when huge profits is made, the money goes to the bank or top people at the bank

[batang_bitcoin]

When customers put their funds in the bank for a certain period of time, banks are using that money to give loan and also trade which is very easy for them and when huge profits is made, the money goes to the bank or top people at the bank

That is their business model and that's how they are becoming wealthier through the help of their depositors and they will give interest which is a very tiny portion of what they've earned from their money. And at the same time, they can use that money as well not just for lending but also for acquiring assets that they are buying for a cheaper price. So, money is just revolving on them and after the acquisition, they'd sell it with a bigger profit margin.

[redsun114]

Are banks really against crypto currency?

I think banks are drawn to the efficiency and speed offered by blockchain technology, which can facilitate faster and cheaper transactions.That is why most countries are now adopting and making digital versions of their fiat currency.

I do feel that banks are wary of the regulatory uncertainty surrounding cryptocurrency, as well as the risks associated with its volatility and potential for fraud.

Despite these concerns, many banks are exploring ways to incorporate cryptocurrency into their services, such as custody and trading.

Yes, banks are really against cryptocurrencies even in many countries cryptocurrency accounts are being banned in our country, and my own accounts are also banned for crypto-related payments. The main reason is the cryptocurrency-first service and zero-charge and there is a growing popularity. It is also possible that in the future people will stop using bank accounts altogether and start keeping all their assets in cryptocurrency wallets because they don't have to pay taxes to the government or anyone else to keep their assets here or even if they have to, they will at least have decentralization.

As cryptocurrencies become more popular, people tend to gravitate more towards cryptocurrency wallets and less towards banks, which can lead to a cash crunch in banks. This can also be a reason for banks to dislike cryptocurrencies.

[Casdinyard]

~snip~

I think one of the things that banks hate cryptocurrency for is the fact that crypto allows people to not need banks anymore, making them essentially useless. You want to keep your money safe from people who would want to steal it? Use a cold-wallet and keep your money in there, problem solved. You want your money to compound in value while also keeping it in the same account? You can hodl your crypto for as long as you please, doesn't matter how, and you can almost always expect to earn money in this process. You want to prep your kids by opening an account for them that you could put money in consistently, probably college funds or whatever? Crypto can also do that.

A business model that can pretty much replace you will certainly leave you quaking in your boots, and this essentially is why I think banks and crypto, at least traditional banks in that regard, will never find a common ground to work with.

[GigaBit]

Crypto Enthusiasts benefit most from the way cryptocurrencies are currently progressing, but the banking sector sees it as their main enemy or big opponent. Cryptocurrency is offering more benefits than the traditional banking system. Moreover, traditional banking systems always rely on third parties which is not required in crypto currency.

What are the advantages of using crypto currency than traditional banking system?

# Very low transaction fees
# Asset transfer without third party intervention
# Fast transaction
# Developing financial services for those outside the banking system.
# Secure transactions and convenience of transacting at any time of need.

[legendbtc]

It is also possible that in the future people will stop using bank accounts altogether and start keeping all their assets in cryptocurrency wallets because they don't have to pay taxes to the government or anyone else to keep their assets here or even if they have to, they will at least have decentralization.

As cryptocurrencies become more popular, people tend to gravitate more towards cryptocurrency wallets and less towards banks, which can lead to a cash crunch in banks. This can also be a reason for banks to dislike cryptocurrencies.

As long as fiat remains the world's primary means of payment and governments do not legalize bitcoin or any other cryptocurrency as currency, we will still need banks and fiat. Even if you get tired of the devaluation of fiat currencies and convert all your assets to crypto, but then you will still have to convert back to fiat currency for daily needs. 

Even if the cryptocurrency trend becomes more popular, it will never cause banks to weaken or disappear. The role of banks is very important to the national economy, it is considered the backbone of any economy. You probably won't need a bank account to save money, but if you need to borrow money, where will you borrow money if you don't go to the bank? Where will you get fiat to pay your daily bills if you don't go to the bank? So banking is very important and I don't think anyone can live without a bank account.

[RockBell]

I think nowadays people love to freedom. So therefore, I believe that many people around the world are getting away from the Central authority and their businesses are slowing or declining instead of surge with time. Thus far as I can tell, for this reason many Bank have become anti-Bitcoin. Because the banking sector depends on the government and the government has the same idea that people should not be given a free hand like decentralization, because in a decentralized ecosystem no one can control you to do this or not do that etc. So my opponion is that there is only one reason why banks do not accept Bitcoin as a currency and that is freedom of privacy.

From what have observed the banks can not a make a move on their own, they need to get approval from the government to either upgrade or even want to take shape. They can just do anything without the backing of the government. And a lot businesses are gradually withdrawing from using commercial banks, in my own region currently they prefer to fintech backs that reduce charges and also have a lightning network. There were times that you see that banks network will start having issues. People are getting tired and for places that they accept Bitcoin is just for you to pay without stress and worry about network if the money is going to hang or not. And people are getting use to decentralization so people want to be solo. But anything backs is centralized so their are disadvantages than advantages when you are using banks. Their is no any financial benefits that banks give. Very on rare occasions except you want to take loan. Even if we have to continue using them but it won't be long.

[moneystery]

....

With CBDCs, governments will be able to trace your personal finance and money movements but I believe that it will be a new trend, in all countries. It's only different among countries in when, sooner or later, governments will do this with their CBDCs.

that's the reason why i prefer to use fiat compared to cbdc. just imagine the government can see how their people spend their money, from transactions to how much their balance is. all of that is transparent and it can be data that if developed using ai technology will create a system that can control people and monitor their payment activities. because if using fiat, the government may find it difficult to track how people use their money and the government also cannot freeze fiat owned by someone, but with cbdc this is very possible.

[Blitzboy]

It is also possible that in the future people will stop using bank accounts altogether and start keeping all their assets in cryptocurrency wallets because they don't have to pay taxes to the government or anyone else to keep their assets here or even if they have to, they will at least have decentralization.

As cryptocurrencies become more popular, people tend to gravitate more towards cryptocurrency wallets and less towards banks, which can lead to a cash crunch in banks. This can also be a reason for banks to dislike cryptocurrencies.

As long as fiat remains the world's primary means of payment and governments do not legalize bitcoin or any other cryptocurrency as currency, we will still need banks and fiat. Even if you get tired of the devaluation of fiat currencies and convert all your assets to crypto, but then you will still have to convert back to fiat currency for daily needs.  

Even if the cryptocurrency trend becomes more popular, it will never cause banks to weaken or disappear. The role of banks is very important to the national economy, it is considered the backbone of any economy. You probably won't need a bank account to save money, but if you need to borrow money, where will you borrow money if you don't go to the bank? Where will you get fiat to pay your daily bills if you don't go to the bank? So banking is very important and I don't think anyone can live without a bank account.

All of this "crypto versus banks" argument is a crock of garbage. Why not have both? Blockchain is amazing. It is not under government control, speedy, and safe. Still, banks are vital. They provide services crypto cannot, they are safe and under control. Consider it as if crypto is a sleek sports car ideal for a brief escape. Good for a family road trip, banks are more like a luxury SUV. You wouldnt race an SUV on a track and you wouldnt use a sports car to load logs.

Thus, crypto and banks should be collaborating rather than battling. Every one of them has advantages; together, we can design a financial system that is stronger, more effective, and more reachable to everyone. Folks, thats a win-win situation.

[Hamza2424]

-They want to hold your money.
-bitcoin/crypto lets you hold your own money.

A little more in it, they want to hold/control your money to run their own business and they won't be able to do that if you start controlling your own money with alternatives like BItcoin. They wont be able to manipulate many economic policies anymore if you start controlling your money. Simply they will be out of bussnies if they starts to support decntrlaized system.

[Reatim]

but I hope they are aware that crypto currency mean no harm to them,

In a way that’s true. Cryptocurrency is an option so as to not use centralized or traditional banking system anymore. Which in itself is not supposed to be negative. We are simply being given an option that we were not presented before. But obviously with the existence of crypto, customers are being driven away from banks which hurt their profits.

for me no matter the traditional something banks should take their pride and collaborat with Bitcoin. Because it's for their own good but all I know is that it's just the government that keeps the central banks not to work together.

I can see ways how the traditional banking system can benefit from cryptocurrencies but the government do not want to promote cryptocurrencies and some crypto enthusiasts do not want crypto to be in centralized banks.

It would be best to keep the two separate in my opinion.

[legendbtc]

It is also possible that in the future people will stop using bank accounts altogether and start keeping all their assets in cryptocurrency wallets because they don't have to pay taxes to the government or anyone else to keep their assets here or even if they have to, they will at least have decentralization.

As cryptocurrencies become more popular, people tend to gravitate more towards cryptocurrency wallets and less towards banks, which can lead to a cash crunch in banks. This can also be a reason for banks to dislike cryptocurrencies.

As long as fiat remains the world's primary means of payment and governments do not legalize bitcoin or any other cryptocurrency as currency, we will still need banks and fiat. Even if you get tired of the devaluation of fiat currencies and convert all your assets to crypto, but then you will still have to convert back to fiat currency for daily needs.  

Even if the cryptocurrency trend becomes more popular, it will never cause banks to weaken or disappear. The role of banks is very important to the national economy, it is considered the backbone of any economy. You probably won't need a bank account to save money, but if you need to borrow money, where will you borrow money if you don't go to the bank? Where will you get fiat to pay your daily bills if you don't go to the bank? So banking is very important and I don't think anyone can live without a bank account.

All of this "crypto versus banks" argument is a crock of garbage. Why not have both? Blockchain is amazing. It is not under government control, speedy, and safe. Still, banks are vital. They provide services crypto cannot, they are safe and under control. Consider it as if crypto is a sleek sports car ideal for a brief escape. Good for a family road trip, banks are more like a luxury SUV. You wouldnt race an SUV on a track and you wouldnt use a sports car to load logs.

Thus, crypto and banks should be collaborating rather than battling. Every one of them has advantages; together, we can design a financial system that is stronger, more effective, and more reachable to everyone. Folks, thats a win-win situation.

Yes, both are important and have their own use cases. If everyone had the same friendly views on things as you do, there wouldn't be any arguments. What you said I completely agree with because that's what I want to say, there will be a more perfect world when cryptocurrencies and banks coexist and develop. But many people don't want that to happen, many people spread that banks are against cryptocurrencies, or that bitcoin was created to replace the current monetary system...many people want to create this war. I don't know what their real intentions are but it's clear that creating these misunderstandings has never benefited crypto or us.

[Psalms23]

Well, banks are often pretty wary or downright opposed to cryptocurrencies for a bunch of reasons. First off, there's the whole regulatory headache. Cryptos can make it tough to follow anti-money laundering and  KYC rules. Then there's the wild volatility—crypto prices can swing like crazy, which freaks out banks that prefer stability. Plus, the rapid growth of crypto could mess with the whole financial system.