Topic: Bank vs Crypto: Are they opposites? - page 5. (Read 782 times)

It's not about only crypto vs. banks, it's about decentralized vs. centralized. So definitely they are opposites. But it doesn't mean both can't work together. Like the government works with the opposition party when necessary. Banks could collaborate with crypto, but it doesn't mean they will lose their revenue. Rather they would earn additional revenue from crypto collaboration that would make easy solutions for crypto users. At the end of the day, we turn our crypto into fiat. So the bank could make it possible. But they dislike crypto due to decentralization. But I believe very soon major banks will start collaborating with cryptocurrency.

The future relationship between banks and crypto is uncertain. Both have some potential conflicts but also a potential collaboration is there. However, it is clear that both will influence each other in the future.
Yes, I agree with you that crypto uses blockchain and bank traditional finance institutions that provide services such as loans, etc. but there are some more things I want to mention.
-As you all know crypto now becoming popular so maybe the bank should adopt their business which will make a new collaboration.
-Banks may be using blockchain for more secure and transparent records.
-The bank will meet with crypto to start a new offer for customers to give them loans based on crypto assets.

Not totally, but has different characteristics; govenment acknowledgement, decentralization, security, volatility, and more. Both are financial systems (individual vs institutional).They clearly have the power to do so as evident with countries such as China. Governments want to regulate this industry which would be difficult given its nature. The only way possible is thru third party wallets and system but it would make a huge difference if ever things would be totally regulated. Interest towards this industry might negatively change simply because the concept itself will be changed. I do hope that co-existence to happen than with full restriction.

As Op said in Short Crypto is doing the work of Banks, Banks were introduced in the world to provide financial services the doors people to help them make their daily transactions and make their Business easy. They failed  and thanks to them we got crypto instead, As for the numbers there are millions of Banks working for this purpose but still millions of people cant get a simple loan and, cant open an account to save their money. Crypto Business just learned from the flaws of Banks and introduced all of their services in the hands of people more transparent easy to access in the form of a digital financial world, not only a solution.

Covering a step of perfection to decentralized transparent solution for all this, Now you should know in an easy and short story that how they are relatable.

Banks depend on the government.
If the government approves the use of crypto in banks, the banks will comply and follow suit.
But if not, banks will never use crypto and will still use fiat, maybe digital fiat.
In this case, banks are neutral because everything depends on government policy towards crypto.
But both banks and crypto will indeed continue to grow.

Banks have a lot to lose from crypto's disruption, but they can gain a lot by adapting. I think we should emphasize synergies over conflicts. Banks have regulatory approval and reach most crypto businesses dream of. Crypto can help banks innovate out of stagnation.

Smart contracts could automate loan approval and remittance for banks. This would cut fraud, expenses, and transaction time. It would also alleviate banks' concerns about unlawful crypto use. Money laundering would be harder with a transparent, immutable ledger. Lets see this as a chance to mix old and modern. If both industries innovate and adapt, they can rise together.

I think you misunderstand between the two.
Banks are controlled and supervised under the auspices of the government, while cryptocurrencies are decentralized and cannot be controlled by any government throughout the world. One of the reasons why many people prefer Cryptocurrency transactions over transactions using bank services is because banks can face failure while cryptocurrency does not face a single point of failure. Another advantage of Cryptocurrency compared to banks is that it is a peer to peer transaction method and does not have intermediary services like banks.

The government has control/supervision and can limit some transactions in banking, Cryptocurrency allows users to transfer funds instantly without restrictions because Cryptocurrency is not under government supervision. You can transfer Cryptocurrency across countries without working hours restrictions, whereas Banks have working hours limitations and it takes some processes to transfer across countries.

First thing first, Fiat is actually a lot easier to be used for illegal activity, especially if the transaction is not a wired transfer, just cash, and no deposit or anything to the Bank. If what you mean as Banks are the institution where you safe your money, then no, they never have any problem with crypto, some of Banks in my countries actually supporting Crypto Exchange.

The institution that has problem with Crypto is Central Bank which is controlled by the Government, they would never let crypto to be widely used as a currency replacing their fiat currency, for many and complicated reasons but mainly because Crypto is a lot harder for government to be controlled and monitored.

With my firm conviction, I believe in the coexistence and development of both.  But saying that the government cannot ban us from using bitcoin is not entirely correct, they are still the ones who make all the decisions. If we really have a voice and power, why can't anyone fight for bitcoin to become a currency? Meanwhile, the government only accepts bitcoin as a commodity and they will never allow bitcoin to become a currency and we will have no right to demand that from them. CBDC will be what they force us to use and we do not have the right to choose bitcoin as an alternative payment method to CBDC.

Banks and cryptocurrency are different, maybe you should then put it this way that fiat and cryptocurrencies which you will still get the response that they are different fro each other, only the similarity is in the means of making payments, having the different purpose they both come to serve is what makes their difference, bank is a physical building where financial activities are being done, cryptocurrency is a digital form of currency that uses blockchain to operate it's activities.


Which means they are different from each other, you can have loan in cryptocurrency because it work by a decentralized network of blockchain, where every other applications and contracts and networks on blockchain independently exist on its own.

I assume that you are referring to the Central Bank because commercial banks will always abide by the regulations of the former. Central Banks will always stand against cryptocurrencies because it is decentralized. They are scared that they will lose control of the nation's financial sector. The central banks use monetary policy to control inflation, hence they assume that allowing cryptos is like transferring monetary control to actors in the cryptosystem.

Crypto is the most inappropriate currency to use for financing criminal activities. We shouldn't forget that crypto transactions is recorded on the blockchain and can be accessed by everyone. So transactions can be traced especially if the actors use a centralized platform. But cash fiat cannot be traced which is why it is best to finance criminal activities.


Commercial banks are not against cryptocurrencies because they can always offer profitable services in the sector. Banks can offer exchange services and give cryptos loans and credit facilities. It is the central bank that is against cryptos because commercial banks have more to gain than lose if they integrate crypto services with fiat operations.

       -  Is there any chance that the bank has an interest in cryptocurrency? It's like I've never heard news like this, because usually banks don't like cryptocurrency because they see it as a competitor. And a big obstacle to their business. Few people really recognize Bitcoin and crypto in the reality that is happening today.

Even though they know they can really help, they still pretend not to. Because they are afraid or worried that their customers might switch from fiat to cryptocurrency. After all, they are not the same, and they have many differences from each other in reality.

Banks shouldn’t be concerned just yet about the so called reduction of the use of fiat currency. Fiat money is for now, what’s legally recognized as money, used as the medium of exchange and somewhat unrivaled as the primary means of making payments so banks shouldn’t fret.

Banks concerned about crypto being used to launder money and fund terrorists? More like unhappy they’re losing out on the revenue that would have been gotten from laundering the funds themselves. Financial institutions have long been used to launder funds as well as fund terrorist organizations and activities perhaps unwittingly.

Banks and cryptocurrencies will be used together, central banks and banks or generally governments won't be able to stop it. People have their voice and power so governments can not prohibit their citizens to use cryptocurrencies in all nations globally. Simply, they can not do it in nations where power is not centralized in dictators and dictatorship.

Banks will follow central banks that are going to create more CBDCs that will be used by citizens. Citizens have other options, Bitcoin and cryptocurrencies and if they feel unsafe with CBDCs or any cryptocurrency deployed by banks, they will choose Bitcoin.

CBDC tracker with information about CBDC developments globally.

If a bank is a service that provides transaction services, then crypto also functions the same. Many cryptos are similar to banks in that they are centralized. Unlike bitcoins.
I don't want to equate bitcoin with crypto including banks. Apart from all that. The presence of bitcoin as a payment system is able to provide the best that is different, such as managing bank transactions.

Banks are never honest. They take advantage of customer deposits to be rotated which can bring profits through interest percentages.
The central bank does not like the uncontrolled bitcoin system.
Do banks need to be trusted? everyone has the answer.


I know that bank collaboration with crypto, such as XRP, is already underway.

They're opposites in some sense and not in others. For example, banks are heavily centralized while Bitcoin is decentralized, or banks are third parties while Bitcoin eradicates third parties. Those are opposites. However, in the sense that they're both providing financial services to the people, they're not really opposites. It's just that they have different systems.

I guess it's acceptable to a certain extent that banks would adapt to the growing demand and use of Bitcoin. The problem, however, is that the current banking system is fundamentally flawed. Fractional reserve, for example, is both risky and unfair. And if they continue to apply this principle while embracing Bitcoin, the main purpose of Bitcoin is defeated.

In my country, the rate of inflation is concerning and I do not see any wise person or knowledgeable person that should safe in fiat. But you are not wrong, some people are business men and women and they have to depend on banks if their customers pay more in fiat and that is how most businesses are.

In countries with high inflation rate, many people in the countries are saving money using cryptocurrencies.

Fiat are mostly used in illegal activities and money laundering.

Bank will not use cryptocurrencies to reduce cost, they will use it like those exchanges with high transaction fees. Banks will use crypto for earning.

Ordinarily banks issue payments and savings, similar to what cryptocurrency is about. But, there are multiple differences between the both. Cryptocurrency transactions have nothing to do with banks. Bitcoin as a network keeps record of all transaction in the blockchain and users can access the transaction histories using explorers. It's open for everyone to see. Banks on the other hand, don't have a place where customers can see what another account is doing with their funds. Only the banking authorities have access to individual accounts. That's is contrary to bitcoin, where a specific address can be examined, though the owner is not known, to find where a transaction was sent to and the amount removed from the address. Bitcoin use private keys and digital signature to access funds stored on the blockchain; input and output. Signatures are used on banks too and the facial recognition, that's for inside bank transactions. But, no private keys whatsoever is needed in banks. Unless banks have started looking out to implementing such features. Cryptocurrency and banks are two different financial systems, where fiats are converted to cryptocurrency and vice versa. But, in a transaction where both parties don't need fiat, its crypto to crypto without any third party. And, it's necessary not to forget that p2p is the primary aim of cryptocurrency, which keeps it far different from banks.   

Sadly, up to now, there are still many cryptocurrency investors with that distorted mindset. Those are just silly, ridiculous claims that the government has spread to keep people away from bitcoin, and most people realize that. But why hasn't the OP realized that yet?



What he's saying in general is cryptocurrencies including altcoins, not just bitcoin. And we can also see altcoins like LINK or XRP collaborating and being used in the banking system. That would create a huge effect, but unfortunately it is still a centralized system and they cannot compare to the decentralization of the bitcoin network.

Another possibility is that banks may be reluctant to embrace cryptocurrencies because they cannot regulate and control them. They may not want to jeopardize their success with FIAT currencies. Maintaining a good relationship with the government is advantageous for banks since they can open or close the door to cryptocurrencies at their discretion.

In fact, banks can also respond to the public's demand for cryptocurrency adoption by implementing Central Bank Digital Currencies (CBDCs), where cryptocurrency is backed by FIAT currency but the network is centralized and controlled by the bank.

Individuals familiar with Bitcoin must accept the reality that government and bank policies are the key determinants of how extensively the public can use Bitcoin. Governments and banks also undoubtedly consider profit as a significant factor influencing decisions related to Bitcoin.