Banks find it difficult to come in into crypto, but it is possible.!

[BtcAnalyst1]

Many of us may think otherwise, but it a known fact that the banking sector had been striving with the cryptocurrency space for a long time unfortunately, there seems to be a continuous loggerhead or some misunderstanding by the banking sector.
Now to avoid being left behind, banks need to find a way to embrace this technology, coparete and treat it as a friendly technology rather than an enemy. How can the banks get involves in cryptocurrency fully?

In my opinion, i think the banks can offer interest bearing crypto accounts, others ways. Your thoughts

[Findingnemo]

In my opinion, i think the banks can offer interest bearing crypto accounts, others ways. Your thoughts

I doubt it is possible because crypto is a volatile asset, so they can't give a valuation to it and provide interests for saving crypto in their account just like what we do with our bank accounts and other other reason is it is not controlled unlike fiat so they can't print more money and circulate their deposits via loans and others like they usually do with our fiat deposits. It's simply too much risk for them.

Possible ways, the banking industry can enter into the crypto field:

1. Provide buy/sell/swap service -  which is very much possible and it can bring immediate customers to them but they may need different licensing to do the exchanghe service but it will be worth it.

2. Payment processing - (it comes under the swap service, though), there's a potential to fill in, if they manage to bridge the crypto buyers and fiat vendors.

[stadus]

In my opinion, i think the banks can offer interest bearing crypto accounts, others ways. Your thoughts

That’s difficult because of bitcoin’s high volatility. If they do try it, they’ll need to come up with an agreement that still favors both parties. But since this hasn’t become a reality yet, even though bitcoin is already popular and regulated.. I guess it’s just not really feasible right now.

[Ziskinberg]

I guess lending is possible, but there will always be limitations because banks can’t fully focus on crypto due to its high volatility. Most of their income comes from the services they offer, especially loans. So if someone deposits crypto, the bank should be able to benefit from it through lending.

But what happens if the borrower fails to pay back the loan because the price of bitcoin drops and they struggle to repay? That could cause the whole service to fail. So even if banks believe in bitcoin, actually lending it might be too risky for them.

[btc78]

How can the banks get involves in cryptocurrency fully?

fully? they can’t there will always be reservations because cryptocurrency is directly opposite of banks

banks are centralized and they would want to keep being one even if they involve themselves with crypto

[alastantiger]

Now to avoid being left behind, banks need to find a way to embrace this technology, coparete and treat it as a friendly technology rather than an enemy. How can the banks get involves in cryptocurrency fully?

In my opinion, i think the banks can offer interest bearing crypto accounts, others ways. Your thoughts

Banks aren't supposed to be fighting the adoption of cryptocurrency but should be embracing it and making it a know path that people can invest in Bitcoin from the Banks directly without needing exchanges. They should have been doing this and taking commission like how exchange are doing. People don't trust many unknown platforms that you can make use of Bitcoin on but if the banks had adopted Bitcoin early and created different means in which we can make use of Bitcoin then they would had been profiting from the wide adoption of Bitcoin. The first mistake that the banks did was that they started fighting Bitcoin at first when it came out instead of them adopting Bitcoin.

[Samlucky O]

bank does not do a business that will not profit them. dont get me wrong that bitcoin is not profitable, but i am saying in the aspect of bank investing into a volatile asset like bitcoin with peoples fund. of course it will be a big loss to them when market goes south. the fact is that bank want to be in charge or total control of anything finance, any business involving bank without the possibility to be in high profit ratio will result to decline. bank does analysis and checklist to be in high profit margin, just like they give loans to organization and individual with reputation collateral, and failure to pay will result to selling the property to recover their money plus interest, but if they invest in bitcoin and i falls for a long period of time without recover, they will not hold anybody accountable for their loses, it is possible if they invest individually with their money but not with public fund. the simple truth is that bank can only invest in bitcoin when government has total control over it, that is if bitcoin somehow becomes centralized. but apart from that bank will never try it.

[Darker45]

At this point in Bitcoin adoption's growth, I don't think the main reason is the continuous loggerheads. It seems obvious the resistance coming from the banks have mellowed down a lot. Not only are they not anymore actively criticizing Bitcoin, they're already finding ways to stay relevant in the context of Bitcoin.

They're not anymore at a misunderstanding. They've already acknowledged that this is the age of Bitcoin now. Look at Jamie Dimon calling Bitcoin a Ponzi, a pet rock, whatever but JPMorgan Chase & Co making sure their clients can purchase Bitcoin. The Wall Street is already into Bitcoin. A bank can't afford to stay stagnant.

Banks can join in many ways. They can offer Bitcoin custody, loans on Bitcoin, all kinds of Bitcoin-based financial products, and so on.

[doomloop]

I guess lending is possible, but there will always be limitations because banks can’t fully focus on crypto due to its high volatility. Most of their income comes from the services they offer, especially loans. So if someone deposits crypto, the bank should be able to benefit from it through lending.

That is only fine. What is only important is that they already supported it. They are a bank and they have their own currencies too or business that they need to focus in but even on other entities, the same thing can happen. What the OP said is also good already. It is either crypto depositors are going to received interests from them, or they are the ones that will be charged for parking their assets there. If people use them and they pay the people, it still makes them popular and this unlocks a lot of possibilities. So I won't treat it as an expense.

But what happens if the borrower fails to pay back the loan because the price of bitcoin drops and they struggle to repay? That could cause the whole service to fail. So even if banks believe in bitcoin, actually lending it might be too risky for them.

As a borrower, we must be responsible. Loans alone has a risk and more if it's highly volatile like BTC. If we think we can get in a messy situation, it is better to not take a loan. But loan defaults can't be avoided. Maybe there are still plenty of people that aren't like this though. Apart from being responsible, they are also afraid of the consequences that they can face for not paying.

[Alpen]

Many of us may think otherwise, but it a known fact that the banking sector had been striving with the cryptocurrency space for a long time unfortunately, there seems to be a continuous loggerhead or some misunderstanding by the banking sector.
Now to avoid being left behind, banks need to find a way to embrace this technology, coparete and treat it as a friendly technology rather than an enemy. How can the banks get involves in cryptocurrency fully?

In my opinion, i think the banks can offer interest bearing crypto accounts, others ways. Your thoughts

I think the first thing that will attract banks is stablecoins. Issuing tokens backed by fiat currencies could unlock a huge chunk of global liquidity that’s currently frozen in traditional bank accounts just to support daily transfers and forex operations.

We’re talking about close to $10 trillion. That kind of efficiency boost is hard to ignore, even for the most conservative financial institutions.

[fruktik]

Many of us may think otherwise, but it a known fact that the banking sector had been striving with the cryptocurrency space for a long time unfortunately, there seems to be a continuous loggerhead or some misunderstanding by the banking sector.
Now to avoid being left behind, banks need to find a way to embrace this technology, coparete and treat it as a friendly technology rather than an enemy. How can the banks get involves in cryptocurrency fully?

In my opinion, i think the banks can offer interest bearing crypto accounts, others ways. Your thoughts

It is very difficult for banks to imagine a situation in which they will not be able to control financial flows. Cryptocurrency is one of those instruments that bypass this very control. For this reason, there are so many disagreements to this day in governments of different countries. I believe that this issue will be on the agenda for many years to come.

In my country, banks have only now issued permission to use bitcoin futures. Only qualified investors will be able to use them, and this is a very small number of people.

[peter0425]

Many of us may think otherwise, but it a known fact that the banking sector had been striving with the cryptocurrency space for a long time unfortunately, there seems to be a continuous loggerhead or some misunderstanding by the banking sector.
Now to avoid being left behind, banks need to find a way to embrace this technology, coparete and treat it as a friendly technology rather than an enemy. How can the banks get involves in cryptocurrency fully?

In my opinion, i think the banks can offer interest bearing crypto accounts, others ways. Your thoughts

I think the first thing that will attract banks is stablecoins. Issuing tokens backed by fiat currencies could unlock a huge chunk of global liquidity that’s currently frozen in traditional bank accounts just to support daily transfers and forex operations.

I do not think everyone is collectively interested with stablecoins. I see that a lot of countries are still very focused with bitcoin as it is the top cryptocurrency and the most popular. Only natural that governments focus their plans around bitcoin.

We’re talking about close to $10 trillion. That kind of efficiency boost is hard to ignore, even for the most conservative financial institutions.

They might be ignoring it to the public but surely conversations are being had privately.

[slapper]

The debate should not be about banks cannot enter crypto. It is the fact that their DNA is different. Banks operate on risk management and controlled environments, and crypto is chaos in open source form, which is half promise and half headache. When you say “misunderstanding,” I hear centuries of muscle memory. Banks were constructed to make predictable profit, not existential uncertainty. They are not missing the tech, they are fear of losing the thing that makes them banks: gatekeeping, curation, control.

When banks go the interest-bearing crypto road, they do not become more innovative. They begin to eat their own business model. Why save 0.01% on fiat when stablecoin DeFi can provide 5%, and far fewer questions are asked? Are banks prepared to gamble their own slow, safe profit model on speed and volatility? Or will they simply tie crypto up in so much red tape that it ceases to be, well, crypto.

Human beings continue to see banks and crypto as natural enemies, yet what if the competition is the illusion? Perhaps it is not the adoption of crypto by banks, but the transformation of both into something new, less centralized, more mixed, more strangely cooperative. Or perhaps we simply get another variety of fintech wallpaper, with the old power behind it. It depends on whether the banks have the guts to actually risk becoming irrelevant, or whether they are simply faking it by pretending to be innovative, but still clinging to the steering wheel.

[Hewlet]

In my opinion, i think the banks can offer interest bearing crypto accounts, others ways. Your thoughts

In the first place, banks are institutions that are under the purview of the government and some central authority. Because of that, it's going to be deficult for any sort of collaboration to effectively work out because regardless of what happens, the fact that bitcoin is decentralised won't allow that proposed collaboration pull through.

In most countries, banks are not allowed to carry out crypto related transactions in the first place so when you talk to crypto users in such countries to relate with banks in an open way, it might look like you're pushing them to implicate themselves by that very act. Banks can easily collaborate with fintech but not necessarily any decentralised institution, untill Thier is an Alton the extent of regulation, it's not going to be all too feasible.

[Die_empty]

How can the banks get involves in cryptocurrency fully?

Banks can offer crypto custody services for customers who don't want to take the responsibility of keeping their crypto assets.

They can also facilitate the use of crypto for both local and international payments. A customer should be allowed to settle financial obligations using crypto instead of converting to fiat before payments.

Banks can also act as exchanges by offering customers peer-to-peer (P2P) crypto payments via bank channels.

Crypto should also be accepted as collateral for credit facilities from banks. Instead of liquidating the crypto asset, it can be deposited in banks as security for repayment of loans.

[Gozie51]

In my opinion, i think the banks can offer interest bearing crypto accounts, others ways. Your thoughts

This is not going to be visible in my view. Banks are under the regulation of government which is the genesis of what to look at because it is when government include cryptocurrency as part of her financial dealings then the banks will be ordered to make such policy and provisions but where the government is not giving any of such window, her subject ( the bank) would not act otherwise. Apart from that and perhaps one of the reasons that the government is not making such policy is the issue of control and volatility. This part of volatility is the challenge of the volatile nature of cryptocurrency and it will be difficult to be peg in a particular price. However, except with some exceptions on stable coins, government that are friendly with crypto may begin such services to customers who don't want to risk buying or selling through CEX.

[EarnOnVictor]

How can the banks get involves in cryptocurrency fully

Do not forget one thing, the bank is a fiat arrangement with a centralised structure. Meaning that they are regulated and their operation is traditional. All these can't suddenly go away just because of cryptocurrency, which is why banks cannot be fully into cryptocurrency. Still, banks are into cryptocurrency, as some banks are buying it openly and are dealing with numerous transactions with third party companies and even intereated their banking platform with them for easy payment.

In my opinion, i think the banks can offer interest bearing crypto accounts, others ways. Your thoughts

It's difficult than you think. Cryptocurrency is a very unreliable and volatile assets, what if the bank is losing by holding it? What's their gain? Banks are established for business, such can't be a good option for them.

[freedomgo]

It's difficult than you think. Cryptocurrency is a very unreliable and volatile assets, what if the bank is losing by holding it? What's their gain? Banks are established for business, such can't be a good option for them.

I’m not sure if banks can really run a lending business based on bitcoin, but I do believe there are successful lending platforms out there already doing it. Banks would just have to follow those models to minimize risk and ensure profitability if they want to adopt this kind of business.

At the end of the day, it’s about choosing the right business model, since banks don’t have unlimited money. If they have other lending services that are less risky, they’ll probably just stick to those instead of going into crypto lending.

[Zaguru12]

I’m not sure if banks can really run a lending business based on bitcoin, but I do believe there are successful lending platforms out there already doing it. Banks would just have to follow those models to minimize risk and ensure profitability if they want to adopt this kind of business.

At the end of the day, it’s about choosing the right business model, since banks don’t have unlimited money. If they have other lending services that are less risky, they’ll probably just stick to those instead of going into crypto lending.

Banks simply cannot go into crypto lending business because they don’t have the capability, first is the volatility of holding since the market can pump and dump but this isn’t even a thing for me because they can simply just stick to 1 bitcoin equals 1 bitcoin which is even the real conversion and take the fiat conversion out. But the real problem lies in whether the bank actually have the capacity to even buy and hold bitcoin, the thing is even on traditional fiat lending banks actually relies on the deposits by the customers and not their real money is used.

Now the question is will any one actually be depositing their money to banks owned crypto platforms, I don’t think so because most crypto enthusiasts are actually on about self custody which is the main thing for crypto at first. So lending is definitely going to be a big issue for banks,

Least I see them do is actually offering P2P services which I will say many wouldn’t even patronize because there are other platforms already

[Yaunfitda]

Many of us may think otherwise, but it a known fact that the banking sector had been striving with the cryptocurrency space for a long time unfortunately, there seems to be a continuous loggerhead or some misunderstanding by the banking sector.
Now to avoid being left behind, banks need to find a way to embrace this technology, coparete and treat it as a friendly technology rather than an enemy. How can the banks get involves in cryptocurrency fully?

In my opinion, i think the banks can offer interest bearing crypto accounts, others ways. Your thoughts

Well they are using XRP if I'm not mistaken, as they have been branded as bankers crypto. I don't think though that they are going to left behind, they could still be banks that chances their stance and could offering their clients to hold Bitcoin and crypto in general. They are not going to let this hype just pass by. This bankers are unscropolous to they will take this advantage to squeeze money from us. Just give it a couple more years and maybe banks are now in front and accepting crypto. That is the thing with this world, everyone has it's vested interested and this rich and wealth oligarchs will have to continue what they are doing and again, jump on every opportunity to multiple their wealth. First it was old and gold, and now it will be in Bitcoin or crypto.