Topic: Fiat, Banks and the future of Cryptocurrencies - page 5. (Read 26313 times)

I don't think the bitcoins gonna last any more than some 10 years. Because the rate of ponzi creations is much in the dark economy

I don't like that purse. Why should someone restrict me from using my funds? What it means to combating money laundering? Probably need to first prove that I launder money and then to limit me. Banks do not want to part with their monopoly on the use of our money and therefore come up with different pretexts. I'm sorry that there are people who support this approach.

Traditional banks usually don't like Bitcoin and in my country few of them have already tried to stop accepting money from exchanges or to exchanges accounts (like if the exchange was depositing money on my bank's account or if I was sending money to the exchange's bank account).

Then the exchange filled a suit against the bank(s) and one or few of them had to start accepting money from/to this exchange again. But the process took some time to finish and I'm not sure if it is the final justice's decision yet.

I believe without giving your personal informations to the local exchanges when converting the money to fiat you won't be able to deal with Crypto-Currency. While the money is on the internet in BTCs everything is fine, you can continue anonymous, but once it goes to real world the bureaucracy starts and there isn't much to do about it. The market won't suffer at all because there will be always gaps, mechanisms used by whales, big investors to avoid some bureaucracy. Exchanges might suffer a bit, but they can move their businesses to friendly countries, right?

Truly, the banks should suffer, because people can abandon their currently banks and search for new more interesting banks, that is possible to be done.

If this happens Crypto-Currency will turn itself into the traditional financial system we have today.

That is why national sovereignty is important, each country has it own rules (and if possible each part of the country), so we can have countries that are friendly or hostile to Crypto-Currencies, this way developers and enthusiasts can choose where to operate their businesses and in the end we will see on the practice what country's model works better.

In our country we have local digital wallet wherein it is accredited by the central bank, but in order to have an account you need to verify first your identity, like sending government ID,
There is no limit on how much you put there but when it comes to withdrawal there is a limit on the first time you withdraw, and it's get higher the next time you withdraw again, but there is a total limit of amount to withdraw within a month because that are making sure that their customers won't be arrested because of money laundering.

I have future with cryptos and this digital wallet of our's since I can also connect any wallet that has connection to BTC,....  and I can withdraw my money on any outlet not just bank.

And it is better to withdraw from outlets or remittance than banks because they are irratiting by the question of what is your source of income.

The future of btcs long living. They are the principle back bone of global digital socciety. how could it be left behind?

Fiat and banks are outdated, cryptocurrency is the future to say in simple terms. The former two have ruled the world and eaten people's money in the form of fees and charges, banks acted as if they are securing money and people but really that didn't happen, instead banks secured fiat and made people unsecured. Crypto currency have changed this trend and have or would abolish brokers or agents to eat people money and give out what people deserve directly.

Actually nothing can be said seriously about a currency which is still in beta and which is a gambling currency.

Yes, you are right why we should bother our self about transferring fiat to the bank through bitcoin cryptocurrency that we all know banks and crypto will not work together. Banks hate crypto because they think that cryptos as there big competitive when it comes money saving or bypass money without knowing by our governments or not traceable to them. Here our country we are not involving banks to claim our fiat from bitcoin through blockchain wallet apps we convert bitcoin into fiat and we may claim any remittances, by claiming our fiat through remittance that the time we pay the tax.

In our country, some banks already act negatively about cryptocurrencies. There have been some news on social media circulating about some people getting their accounts close because they are involved in cryptocurrency trading. If they trace your account sending and receiving large amount of money but below the amount that will alert AMLA, they would then ask the account holder to show some proof where he got his money and if he will say about bitcoin, they would close the account of that holder and say it is not allowed but when they are ask about that rule, they cannot show anything. The account holder then ask the central bank about it and they said that there is no particular rule about cryptocurrencies being illegal. Our central bank are even granting licences to some companies involved in cryptocurrency so it just shows that some banks are against it because it is a threat to them.

first of all, why bother in transacting with banks? once you have transferred bitcoin into fiats using banks, your account is no longer anonymous, they can even trace your online transaction then forward you to government tax departments, why bother doing business with banks when there are blockhains and online wallet that you can convert it anonymously. banks and cryptos does not work together, they never will. if you are planning to transfer small amounts using banks, it is useless because it will be taxed, if you want huge amount to be transferred, you will be convicted of money laundering or hoarding, they will question you where did you get all that money, then you will be taxed, again.

AIM/AOL blocked the blockchain.info domain which prevented me from receiving 2FA emails to login to my blockchain wallet. This was maybe 6 months ago? I don't know if AOL is owned by banks but there could be emerging anti bitcoin and anti crypto measures silently being tested and implemented. I know my state in the USA is also pushing anti crypto currency legislation quietly.

I wouldn't mind if crypto exchanges operated out of servers hosted in international waters or neutral legal territory which protected them from the demands of foreign nations, similar to what thepiratebay and others have done in the past. I think that might be too dangerous to pursue. But for countries like russia which are being hit with economic sanctions, they might have the influence and chutzpah to make something like that happen. It could be profitable enough to be cost effective.

There are things that could interfere with those who are wanting to transfer their value of crypto into fiat currency.
It all depends on the country in which you reside in to be honest.
I am talking about the tax implications that the government can impose upon you once you do transfer the crypto into their own local currency.
Along with many other things that the banks can nail on you since now you have a paper trail with those transactions so to track you down.
Obviously your bank has all your personal information and they do work with the government when it comes to claiming the revenue an individual has accummulated in relation to their annual income.

The problem with large amounts are more complex. Even if you found a way to get past those Banks, you still need to get it

past the tax collector.  They will audit you and then you will have to explain those big purchases. {If you can even buy

that with large amounts of cash these days} You are f@cked either way, no matter what you do. I would still do it my way,

but I would do it like you would be eating an Elephant.... small pieces, day by day. 

Fair enough question to ask, OP, even if you're getting quite the blowback on your questions, it's just that I suspect people here feel your intentions aren't as innocent as you present them, so you'll accept the tone of responses.

I don't have much experience of my own to be able to give more than an educated guess at what this future relationships banks will have with cryptos. On one hand, you've got banks that seem to be very keen at least with blockchain tech and Bitcoin as an investment tool - probably not fully realising or understanding that Bitcoin threatens their very existence. On the other, as you note, KYC/AML processes are tightening, not easing up - and this trend will be happening whether we like it or not.

It is important I think to remember that banks are always interested only in self preservation, and maintaining their relevance to state economy and the reliance of money on banks. So we might note that this behaviour is partially motivated by the derisking strategies of banks, as well as their eagerness to comply with national/regional on their ends... sort of making amends for their roles in last decade's financial crisis. In other words, they're simply doing this to cover their own asses, not so much to restrict crypto.

Yeah, i wish I had that much. Just trying to illustrate a challenge.

And it's really not about the taxes, but the fact that if somebody made really such amounts they are not able to get it out.

Woww if you want to withdraw that much amount into your fiat account surely you will be in a risk.So wait for few more years when you can spend crypto as a direct mode of payment,if you can't wai then you will lose all your money or you have to pay taxes upto 40%.

I do not believe that such money is earned honestly. Therefore, people are used to deceive the state. There are always black exchangers. You can exchange bitcoins for cash without using a Bank account. There are online exchangers that make the translation from private individuals. Such a lot of options. Everyone chooses for themselves is acceptable.

Using the example above of wanting to move USD 10m out of crypto into fiat:

With your strategy it takes 20'000 weeks or about 384 years to withdraw USD 10m! Even if you set up 10 accounts and withdrew USD 5000 per week, this strategy takes almost 40 years to get the money out.

Use your common sense and be discrete.

Set up several new current accounts to receive fiat money that you are withdrawing from the exchanges. (Don't use your main current account because you don't want to put that at risk).

Then withdraw about $500 worth a week till you have withdrawn all your money. The key is to not trigger the bank's algorithms, so you need a lot of patience.

In some countries the bank accounts were frozen because of large amount of money transferred into their accounts from the exchange.But in that case people can use localbitcoin where the money transferred from an individual account to our so there is no problem I think.
The regulation will give the solution for these kind of problem so never transfer big amounts until the crypto will be regulated in your country.