Topic: Crypto Bank (Read 1149 times)

If the OP is not interested in posting in a thread he created about a specific topic, it means he should have locked it. It seems he was last active in December 2022 therefore will probably not make a comeback here to continue with the thread. It does become tedious reading some replies that clearly have been posted by signature spammers.

I will report the thread hoping it will be locked.

Coming to this board section in the first time.
It'd be a good idea if the banks would buy and also sell cryptocurrencies to their account holders and that would automatically made them crypto traders right? I think it's already realistic in countries that the government has already adopted cryptocurrencies as legal tender for service payments such as El Salvador but if talking about the bank managing your crypto assets for you as implied with the fiats, then it's a no buyable idea because the bank has even been unable to tell us how the bank transaction fees are been setup up and how unlimited the printed currencies are but yet you're told sometimes that the bank has run insufficient fun to pay you when requesting for withdrawal.
Most times we hears network service errors and lot more.
Imaginably, how can the bank convince us to  believe they won't manipulate the crypto because then it becomes centralized and no more decentralized by which we undertake control of our funds unlike the fiats.
I myself don't trust the bank and can't advocate for bank running a crypto account opening for us because we're being already rigged with the fiat system.
 If they can't be transparent with the fiats, how'd they be with a decentralized digital cryptocurrencies?
So how about if they insist charge fees for maintenance? Just a hell NO to centralization with my crypto funds.

The bank will be the best idea to be implemented in the crypto space but the challenge will be the trust levels as individuals are more confident with their wallets rather than having it handled by someone else. The only difference is that a card might be needed, but if a card service comes in as a freelance service then people will opt for it instead of banks

Of course it will require very complicated licensing in each country, of course there will be pros and cons in all economies if that happens, whatever the impact, we also won't know, because not everyone has Crypto and only a handful of the middle class may be able to feel those things, plus regarding Crypto currency is very sensitive when handled by the government, of course there will be a lot of rejection and even it will be abandoned because there are many options that are profitable for its holders rather than having to trust Crypto Banks which of course the government will take part in customer storage.

There will definitely be hidden deductions when making transactions if the government is involved.

Launching a Crypto Bank is not as easy as we are talking about, you have to overcome many challenges and obstacles, because there are still many of us who don't know what Crypto is, and how it works, how to use it, there are still many question marks from all levels of society, especially for people ordinary people, they don't know how to use it and how to use it, because what they know is that every purchase uses fiat currency, so we have to go through a long period of socialization, and even then not everyone can accept the ideas we give, there are many things we have to think about In my opinion, this is all a bit difficult to develop, it will just be a discourse.

Maybe your idea is good to develop a crypto bank, but that's just for you, if I'm not mistaken crypto has been developing -+ 15 years, I'm very sure someone has done that kind of idea, but I don't see them succeeding in doing it.

Developing a crypto bank is not the same as developing a traditional or fiat bank, where fiat is supported by many groups and people trust fiat banks more than crypto banks, that is a fact that happens in the field.
Before you develop a crypto bank, of course you must have special support for it, such as: national and international government approval, support from the wider community in general and you must be able to physically show digital currency to customers to be able to operate your bank, are you able to do these points, otherwise your efforts will be in vain.

The bank's main feature is security, how do you apply security to customers' crypto assets at your crypto bank, for example hacking and so on, who is responsible if that happens and what if the customer wants to withdraw cash, what do you give.

If your idea is successful, maybe we will see that every country already has a crypto bank, the proof is that it has become a myth.

Bank want to use as a share but it will not possible in the future. They will take government power and push people to hold btc to their system which is not good sign also.
I think bank will not think that they will use bitcoin for people because it is totally decentralization and people want also decentralize wealth and money which available in btc.

Of course what you say can be understood by many parties, but I think it's two different directions. Bitcoin, the blockchain that we are currently using, has a decentralized concept, while the current banking concept is centralized. In fact, the existence of crypto rejects the concept of centralization, in fact many exchanges are currently being questioned regarding centralization. Let's say that Binance, which is currently the world's number one exchange, also uses the concept of centralization, so recently a decentralized exchange has emerged.
A bank is the same as a wallet, meaning a place to store money, not an exchange. How confident are people in using centralized wallets today?

You are right, but we are still not at the worst end because we still have decentralized platforms that we can use without having to complete KYC verification at least, although sharing bank or account details to receive the funds becomes a necessity. After all, otherwise, how the person, on the other hand, would pay you and know that he is paying the correct person? So for P2P trades, we can't help but share our details with the person we are trading even if the platform is decentralized, however, for other purposes, we can still avoid doing KYC verification.

We should think about the times in the future when there won't be any decentralized options available for us to use. We know how fast the regulatory pressure is increasing in the industry and every platform is getting regulated by the authorities, they will hunt down decentralized platforms in the future as well for sure, and once that happens, we will have absolutely no option but to comply with their rules and regulations and provide them with whatever they demand to be able to use services that we need because you don't have an option.

I don’t think it’s so much of a problem if someone during P2P sees your bank account name because it’s only your name but nothing exactly about you is exposed. But if you talk about giving your details to these exchanges, it’s very different because they will know your house address, your age, name, next of kin, and everything needed to track you (if they wanted). There’s really a lot of difference compared to when doing P2P to a stranger who doesn’t care what your name is.

It's so common for crypto businesses to enforce KYC procedure nowadays. It was weird in the early years of this industry, although now it's already pretty usual, being weird for a business to not demand personal informations from users in order to let them use the platform's services these days. If you want to cashout crypto to fiat right now, you probably have to give your personal ID to an exchange at some point, otherwise how are you going to cashout your profits from crypto investments?

Even if you do P2P transactions, the person on the other side of the transaction will have access to your bank account's informations. Privacy is an utopia, and the risk of having your private informations leaked is a real risk 99% of crypto enthusiasts have to take, otherwise they won't be able to remain active on this industry at most platforms it has to offer to crypto adopters, since they are heavily regulated by local authorities from the countries where they offer services.

The third point here is just about the main deal. This is because asking KYC in cryptocurrency related business is weird. We should have that feature of privacy that no one knows any of your information. Having to WILLINGLY submit KYC and even many more information is not something that I’d do. KYC scares so many people because of various reasons, which also includes data theft. 

Local banks may not be able to work with this fully because the concept of the Blockchain technology for the crypto space is to be decentralized thereby not letting room for the regulations of the crypto market a d aswell as it's transactions and the local banks are usually regulated and aswell been sanctioned in cases where their transactions and activities fail to stay under the regulations of the government policies about how financial activities should be done in such country or state. An online crypto bank can be created that will still abide under the decentralized system of operation in other to avoid hitches since they will be operating crypto aswell so it will be beyond the regular local banking system it will be such a good innovation amongst crypto enthusiast.

It's will be a thing of joy for most people that the banks now works in a way of crypto but looking at it other other hand cryptocurrency is something that deals with private keys and it's shouldn't involved third parties, is just you and your wallet, so how would people cope with such a lifestyle exposing their keys to the banks despite their will KYC  involved

So for me I prefer it should be just me and my phase then third party

It does not make sense to have a 'crypto bank.'

A bank's core function is to maintain a ledger (a list of who owns what value). BTC is a ledger that was designed to replace this core functionality. In other words: BTC is already a bank.

I don't really think that any crypto user like this Banking system . Because the main purpose of crypto currency is avoid those things . Crypto users are the only owner of her wallet  no outside has authority here. But can start like  a centralised exchanger which give consumer nice APY rate.

Bank is basically a custodian of our money. It offers services which suits it. For most people bank is a good entity. But the concept of bitcoin was to bypass the traditional banking in personal peer to peer transactions. However with increasing numbers and sophistication of scams, I think people will start using banks as custodian to their crypto lust like it do for their fiat.
So In a way yes we might see crypto bank in a year or two

I think that this type of service / product will appear on the market sooner or later. However, I don't think it will be what you think. I think it is simply the bank that will create the electronic form of fiat money. In fact, there is already a lot of talk about it and I think that this type of money will come into use within a few years. Of course, someone new to the market will have a big problem to compete with existing banks, because I am convinced that they are already preparing for it and already have a customer base and operate in accordance with all regulations. Someone new without a lot of capital simply will not survive.

What then is the profit of the bank? What will he pay interest to users for?

If institutional bankers will make this idea into reality and give decent percentage return per anum then most provably I will tryst them because we know they are trusted since they are been regulated by the law. But if random people will create this and they are just known online well maybe I doubt I will use their service because scamming is not new on crypto and might they used that if this idea became successful.