Topic: Bank vs Crypto: Are they opposites? - page 4. (Read 782 times)

You tried in your definitions of both topics of discussion but you have not really taken the time to discuss the underlying relationships between bitcoin vs banks but for as much as I know,  cryptocurrencies are best alternative to traditional paper currency and more so also,  blockchain technology is the best alternative to banking systems,  but both institutions work hand In hand with each other and that is something that we have to acknowledge at all time.

But between the two, banks have been a little hostile towards Bitcoin since there have been several attacks coming in from the banks towards Bitcoin,  with some central banks making restrictions between bank involvements in cryptocurrency transactions.

Banks are control by the government while crypto are decentralized currency that is not control by government.you can hold fiat physical to buy what ever you want to buy from the market and pay with Fait for the seller to see and touch the money at the moment while you can't use crypto physical but you can use it as form of transfer to the seller before you can go with the goods is some country that is legal tender.

Yes, banks has failed people through bad network and other things that is making people to fall in love with crypto despite the condemned the banks users are condemning crypto in the front of their customers but Many people still prefer to invest their money in crypto than leaving the money in the bank. Crypto transaction is safe and secured which is part of some of the things that made me to prefer it than bank transaction despite it is not legal tender in my country.
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Banks are institutions, cryptoCURRENCY is digital money. There can be a collaboration between the two, banks have been issuing fiat to their customers for many years, they are a corporation heavily invested in making profits and are open to accepting other forms of money. The cryptocurrency wave is already here and I believe the banks will not be left out in this innovation since there is profit to be made. I think the only cryptocurrency the banks have a problem with is bitcoin and privacy coins. If there is going to be any crypto-bank relationships, it’s going to be CBDCs.

I don't know where you got that information but I have never heard something like that coming from banks. I have heard that from other governmental authorities but I have never heard that from banks. IF it comes to money laundering than banks know better that fiat can also be used for money laundering and even those so called banks can't stop those money launderers. Yes, I agree that there has been allegations against crypto-currencies that they can be used for money laundering but those allegations are largely biased because as already discussed that fiat can also be used for illegal activities like money laundering and in fact fiat is more used for that purpose than crypto.



I don't think that till today banks have any good relationship with crypto currencies other than just a few ones. The one I know is XRP which has some kind of collaboration with banks. If we talk about Bitcoin then I haven't heard that any bank has collaboration with it and I'm sure there won't be any bank that may have any kind of collaboration with it ever because it's decentralized and unregulated while banks work based on the centralization principles. Of course in crypto-currencies XRP is the favorite one for the banks and surely in coming times the CBDC's will have more dominant position with the banks, but for now we can say that XRP is accepted by some banks if not all.

If you say they have different purposes, I wouldn’t be in very much agreement with you but, when you look at it from the way it’s operates, there you can find some real difference.

I suppose your contest to banks as in the OP is you referring to fiat currency otherwise, if your referring banks as a financial institution, then you would be making a lot of mistakes trying to put cryptos and banks in contrast.

Having the above in view, fiat and cryptos are both currencies and means to finance. Hence, it’s hard for them having different purposes.

When it comes to means of operation, there remains a difference between a decentralized system and centralized systems. While one is more privacy concern and can serve variety of purposes, the other is limited by boundaries.

Fiats and cryptos aren’t meant to be exclusive, I always tend to view them for a fill up on the limitations of the other.

Maybe bank is not opposite from crypto but they're not totally the same. Banks is a place where you can safely put your funds and gain small profit in the future, while in crypto, you can also keep your fund safely and earn a potential high profit from staking or from holding the price. Banks is only best at holding physical money since it can guarantee you its security. But in crypto, the level of security is also best if you knew what you are doing. More over, you can possibly gain a lot just by holding.

If we consider loans an essential function of banks, then yes, cryptos are different. I've personally never use bank loans, so to me, it's not essential. As for savings and money transfers the op mentions, they can be totally done without banks, namely with Bitcoin.
Now, banks being worried about cryptos being used for illegal activities - well, it's not their place to be worried about that. They aren't the law enforcement or policymakers, and there've been huge scandals of very big-scale money laundering and other illicit activities done not just by people who are customers of banks, but by banks themselves, and major ones at that. So they should focus their worries on that.

It reminds us that Bitcoin's blockchain technology is decentralized and peer-to-peer. In traditional banking, select staff can examine account details, but data protection rules control these interactions.

Bitcoin promises decentralization and autonomy, but sacrifices personal responsibility. If you lose that seed phrase, you cant recover the funds or call customer assistance. Imagine locking your keys in an indestructible vault.

Yes, financial sovereignty and control are government issues that cause regulatory barriers. Many nations are trying to understand and regulate Bitcoin, not just fight it. As society gains information and insight, Bitcoin opinions may change.

I agree with you. Illegal activities these days on crypto will be nearly impossible not now that exchanges are getting their users kyced. Even if you use Dex, the transaction could still be traced. I have a feeling that sooner or later, Dex might do same.

Exactly, you are saying the truth, they think he will affect their source of income, that is why they don't like crypto transactions, no one wants to leave is money on bank now, everyone needs what to give him profit, because I don't think if you leave your funds in the bank he will increase, they will just debit you for keeping your funds save and hr will be decrease, but crypto investment like Bitcoin you invest your money on it for long term, you will get higher profit.That is why some countries refuse to accept Bitcoin as a form of payment because they cannot control it and cannot collect any tasks. Because Bitcoin has surpassed them, there is nothing they can do, The only thing Bank do for customers is just giving them loans.

This is what happening all around the world. Majority of the money laundered and tax evasion were happening through fiat. Through fiat only illegal transactions and illegal activities were funded. Just to keep people under control, the governments always make false claims on cryptocurrency. It is our responsibility to understand the real fact than just fearing on the statements from government. Slowly few banks have begun to support cryptocurrency investment. Over time similar to fiat we can experience the usage and access to cryptocurrencies.

It's not for the bank to decide what happens, but rather the government, and if they decide to pass the orders that should be followed. just the way the Nigerian government has decided to restrict crypto transactions in the bank.

Secondly, if the government is concerned about crypto being used for illegal activities like money laundering, could it be that if they put restrictions on crypto currency, money laundering crimes will not be committed through other means? Right from the start, money laundering has been in play, even before crypto was born.

Banks are just centralized traditional financial systems, while Bitcoin is a centralized digital asset that the banks or government are just trying to regulate but I doubt they could be able to do it.

I am from a country where government corruption is widely felt in every sector of the country and this has been happening for a very long time now even before the recognition of crypto-currency, and the means by with the government launders money and the countries funds has been through fiat and the banking system not just this but other forms of money laundering has been Carried out using the banking system.

Yes man, banks use people's money to make their own money, and not only that, their transactions are limited and it can be easily accessible, someone can easily access the amount of money in your account (people like customer service), but in Bitcoin wallets your transactions are not limited and no body can access it if they don't have your seed phrase.

It is true that the banks are worried about Bitcoin from their customers and this is one of the reasons why Bitcoin is not allowed in some countries, and the government, too, are also benefiting from the banks. That's why the government is doing everything possible to stop the adoption of Bitcoin, but since Bitcoin is unstoppable, its awareness is still spreading in society. Bitcoin has given a lot of people another chance in society.

I don't think that the approach between the parties is as it is stated, for example, the TDC Visa and Mastercard, or any other, work with the banks and are together but not mixed, but people tend to think that this idea is "thanks..." to banks, or they are the ones who handle the transactions, in fact TDC can be issued for any type of business,  soccer teams, telephone companies, stores, etc..

The commercial join that can comes to exist (it already exists in some way) is only linked to financial success, if the banks make profits,they don't care about anything else, or they will care as much as when they give you a loan and they think about the benefit to you as a person or that you finally pay the interest on the assigned credit.

Banks are mostly private institutions that seek returns, so things like whether it is legal or illegal, then they themselves fall into that "border" or gray zone of what it means to work with the situation of money laundering, suspicious transactions. etc

Bitcoin is always mentioned as a Trojan horse but the reality is that the Trojan horse is the bank.

Money or bitcoin or even gold is always used for good and bad things. And I dont think that will ever change, you have to exchange values if you want to own something. The banks are afraid because they cant control Bitcoin, otherwise they are also afraid of gold. Now banks are trying to offer a hodl service so they can get power over some of Bitcoin.

The modern banking system relies on fractional reserve banking, and crypto would essentially disallow banks from doing so. Fractional reserve banking only works because the government usually acts as arbiter with an infinite balance in case the bank goes under which is why banks would be reluctant to adopt more crypto into their portfolio.

The government hasn't hesitated in the past to bail out private banks, so it remains within their interest to act recklessly with depositor funds and be bailed out with no penalty.

Banking is totally against the trading and crypto trading,today I went to bank and had some talk with the bank employee.The employee thought the crypto trading was against the government.They thought it’s like black money involved is the major part in the crypto currency.Bitcoin was regulated in my country,but the banker with the financial knowledge doesn’t aware about it was the sad part.From that I had learned,how it’s hard to trade the cryptocurrency in the country where the bitcoin is illegal or in neutral state.The fraud also using bitcoin for their transaction is the reason behind the banker opinion.

OP is mixing things together. Banks are custodians, the way an exchange can take custody of your cryptocurrency.
It's not about banks vs crypto but fiat money vs crypto. Banks can compete with exchanges and companies that offer you interest for holding coins with them.
So, is crypto in opposition to fiat money, yes it is.
Are banks in opposition to crypto exchanges? I'd say no, but they are competing for customers. If people are allowed to do everything with their crypto that fiat money offers now, they won't use fiat money anymore.

Cant really be possible on such way on which tending to make out some acceptance and adaptation but sacrificing anonymity and total decentralization? It cant really be that that happening if we do speak about on how
government is really that liking on which it cant really be that possible to be integrated in between crypto and government itself. We do always have that fine line when it comes to their main differences but somehow it could really be that reconsidered but expect that there would be things that would be removed out.Government doesnt really like the essence on having that decentralization which it would really be totally opposing on what they do prefer and want and this is why its not shocking that they would really be going against with cryptocurrencies main feature or characteristics but just like been said above that having those opposites doesnt
mean that it couldnt really be able to have that integration but just like on what i said earlier that it would really be having those notable restrictions or something that had been removed which it would be completely
that taking away that anonymity or having that full control thing.