Topic: Are banks needed for crypto? (Read 811 times)

You and I technically knows that banks are very much needed in cryptocurrency otherwise, majority Wil just be hearing of Bitcoin and ethereum and wouldn't be able to do much or purchase.
Unlike people that are closer to Stable coin OCT like Tether that can easily Mint Usdt with fiat and buy their desire coins.
Banks are needed to switch between two world, you need bank to transition your value from fiat into cryptocurrency and hence they are needed for now, may be things might change in the future.

,actually between bank loans and cryoto have similarities. However, crypto transactions do not require trust. Digital tools and breakthroughs such as smart contracts make them paperless, no need for complicated authorizations and repeated checks when transacting with crypto, just like making loans. Therefore, crypto loans can be processed in seconds to minutes, you can also choose loans with DeFi or CeFi schemes.

Yeah I know but I was talking about the past, credit right now is easy, everything can be bought on credit, after all if you can cover the price of what you want to buy with a credit card then you are making a purchase using credit, however in the past this was not the case, you could not get a loan except for productive endeavors, and I think it is time we go back to that as it is obvious that people cannot manage their credit well and banks are taking advantage of them with all of those unsecured loans.

Banks already exist from the very beginning without crypto. I don't think if one day banks will adopt and accept cryptocurrency on their platform because banks is centralized while crypto is decentralized. Crypto is more secured than a banks and in crypto, you have full control with your assets unlike in banks that there is a third party.

The only way to have  Loan mechanism here in crypto is with collateral in which you need to provide something more valuable than the amount you wanted to take as loan and because there are no assurance at all that we will receive payment from the loaner incase there are no collateral offered.
we have seen so many scamming happens here even the most trusted accounts becomes scammer because of a Non Collateral loans.

in the traditional banking system there are some loans that are unsecured, such as credit cards, where we are fully responsible for our good name to a particular bank, and this does not require collateral. while in crypto we see in several exchanges that bring up images of master cards

Well if privacy and anonymity are concerned you are absolutely right, at that moment it begins to end and it is no longer the same, however there are people who have never worked or handled BTC or cryptocurrencies, and for them it is easier to trust one banking institution to indulge in the adventure of reading and learning because much more would be achieved.

The positive aspect that I rescue is that those who buy BTC or crypto in a bank, is an increase in demand in the BTC market and there are those people who were never going to enter on their own.

Loans in the world of cryptocurrencies will most likely work in a way similar to the way they worked for a long time, basically you will need a collateral to get a loan, this means that many people will not be able to obtain loans, but is it not that the case already with the traditional economy? And while some may think it is unfair it is not, a great deal of the loans today are given for consumption and not for anything productive by itself, and it is one of the reasons why the economies of the world are in such a huge trouble, so a return to a more simple system will be welcomed by me at least.

There is a thing such as crypto loan but it isn't widely used I think because it is much more complex than loans made in fiat. You see, cryptocurrencies' natural state is volatile, meaning the prices vary depending on what season we currently are, the time for today, and of course the external factors such as news, legality and the likes. When you plan to make a loan in crypto, you should know the basics and the terms of services so that you won't be shocked later on.

In crypto, when you want to loan, there is a collateral same with loans in fiat. Only that, collaterals in crypto is crypto as well and not properties unlike in fiat. You can only borrow if you are a verified user and if you are qualified to borrow. So in this instance, it isn't for those people who are not fond of KYC. The calculation of interest whenever you loan (in Binance for example) is hourly. Any amount of coin that you borrow will have its interest per hour. When you borrow it for less than an hour, the interest is still counted as an hour.

The collateral damage in crypto loans work the same way in fiat. If you will not be able to pay to the supposed date of repayment, they will liquidate your funds. Just like how the banks get your properties the moment you fail to pay on the agreed date of loan payment.

As of now, I don't think crypto loan will be a big thing or will happen soon because like what i have said, it is complex. Given the price fluctuations of crypto, the chances are 50/50 of benefiting and not. Although there are platforms that are doing it now, I don't think it will be patronized as much because it is riskier compared to trading or investing.

Banks and cryptocurrency are difficult to put together. In my opinion, I could say that cryptocurrency don't need banks because crypto has a strong security unlike banks. I think also that banks don't need cryptocurrency but it needs the blockchain technology to see every transactions in banks. But, I guess if they put together, the security system will be more stronger and a lot of things would be better, so, it would be an amazing thing.

As far as I know Binance phone application gives an opportunity to put your crypto on deposit. It is very nice and interesting option and it really works fine. Binance also gives an opportunity to take loans in crypto: https://www.binance.com/en/loan  . Probably other exchanges also give loans in crypto. However I believe that credits in crypto, it’s very risky business. 

For now, yes we need banks for cryptocurrency usage. I mean that we can of course use cryptocurrencies as a payment method wherever it is available. However, we don't see that the majority of the places accept cryptocurrencies. Until then, we will need banks and fiat to convert our coins to fiat and use it for payments in most of the places. But in the future, I think that we will see the days too that we will not need fiat and banks.

Indeed, that is why I invested in crypto in the first place. People think it is great to entrust their money to a third party, but I prefer it being my own money and not being risked to someone else's hands.
Right now, the "advantage will be slimmer" ain't not going to happen if people still see crypto to being something to make rich overnight.

Talking about money lending, there are lots of platforms here that lends money to people in the cryptocurrency community. Maybe the way they function may be different from how banks functions, but it’s still the same service that they’re offering. This is a system that doesn’t require banks to operate.

When it comes to cryptocurrency everyone is in charge and manages their finance, now whatever business you’re doing with anyone , you’re doing it directly with them, and there are no middle men needed for any form of transactions. So, banks are not needed at all.

we really have to be able to live realistically with the existing conditions and situations that occur. we will still need a bank, because every transaction will be converted to fiat to be able to shop for the necessities of life. On the other hand, banks without crypto are actually not a problem for them, because banks are protected by a big power, namely the government

DeFI could exist or become a trend but doesnt mean that we wouldnt really need any service that came from Bank.Of course there are services which banks are only able to do so.

Yeah, decentralized finance is good but doesnt mean that it will really overtake or could patch up on what centralized institutions could do.
We do still need them even some people doesnt like them or not.Lets just bare these benefits that we do get from this new tech/services/platforms.

Define "needed", and we could have an answer. I mean surely it is not "needed" in the sense that we do not have to have it, we could handle p2p and swaps and so forth and make due, we will not be forced to use them. However do they make it easier? They really do, I still pay fiat wherever I go, so I need fiat in my bank account, I could use p2p when trading if I want to, but using Binance and withdrawing to my bank account directly makes things a lot easier to be fair.

So, I have to say that things are looking amazing for banks now because they make things easier. You are not forced in any way or shape, so they are not "needed", but still it is definitely not a bad thing neither.

Even though that doesn't mean banks aren't necessary in life.
We certainly already know that the function of the bank is for what, apart from the rules and system imposed by the bank, we cannot eliminate banking in life because it is related to the existing economic system.
crypto is indeed very good but that doesn't mean we only live from crypto, at least we have to be realistic that in real life the role of fiat and paper money is still a vital tool in payments.

Bank and crypto is a difficult thing to put together, the presence of a bank with many conditions and difficulty to withdraw and fees for large transactions are certainly not expected by crypto users, we are in a different era that no longer needs banks to control our money, this is the modern era so banks are not needed in crypto.

Thank you friend for reminding me an important point that I almost forgot. because it considers fiat and bank to be the same but basically fiat is a component of the bank itself.
but apart from that it's all in line with what you said that sanya is too optimistic and indeed very overconfident when it comes to saying that crypto can live without banking and can even replace it.
at least I still hold fast to the belief that I believe that even though crypto and banking cannot be combined but in this case it doesn't mean we have to choose one and leave the other because I live between the two.