Fiat banks and the government. - page 5.

Oasisman

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Quote from: Rruchi man on November 18, 2021, 08:24:19 PM

Can the banks challenge the policies from the government? Are the banks working for the people or the government? is there any possibility that banks can operate freely entirely from government policies?

I'm not quite sure about this because even the private banks have been operating under the policy of the government here in my country.
But, one thing is for sure these banks can actually contest the policy If they think it's not necessary to do such thing that could potentially help their business grow.
The government would always control everything especially that those involves money.

BIT-BENDER

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Quote from: Rruchi man on November 18, 2021, 08:24:19 PM

A recent situation in my country where the banks have been instructed to block accounts related/associated with crypto trading has prompted me to start thinking if these banks are actually happy carrying out government policies against their customers, because some of them seem not too happy about it but look to have little or no choice on the matter.

Can the banks challenge the policies from the government? Are the banks working for the people or the government? is there any possibility that banks can operate freely entirely from government policies?

(Read news article here)

I think we shared the same government, the nigerian government has a finance and economy functioning body and that's the central bank of Nigeria, and they have made it that banks are dependent on this body, which I don't think is right, some of nigerian Bank can even be bigger than the central bank if given the chance to be dependent, I know some bankers who are into crypto-currency and supports it, but for their dependency has to carry this out, that is why the government are also fighting online banking, like that of Kuda.

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Quote from: Rruchi man on November 18, 2021, 08:24:19 PM

A recent situation in my country where the banks have been instructed to block accounts related/associated with crypto trading has prompted me to start thinking if these banks are actually happy carrying out government policies against their customers, because some of them seem not too happy about it but look to have little or no choice on the matter.

Can the banks challenge the policies from the government? Are the banks working for the people or the government? is there any possibility that banks can operate freely entirely from government policies?

(Read news article here)

Banks work for themselves and no one else, if they are mad about this then this is not because they want to side with their clients against the policies mandated by the government, they just want to obtain profits with this market as well, and personally I do not see anything wrong with that, I have always thought that you can more easily convince someone by appealing to their self-interests than by appealing to some kind of ideology, so if banks see their financial situation being affected substantially by this they will eventually move their influence to stop it.

uneng

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Quote from: Rruchi man on November 18, 2021, 08:24:19 PM

Can the banks challenge the policies from the government?

They can, but they won't, because to work in cooperation with the government is always profitable for them. And even though someone influent inside a national bank challenged a government's decision, this person would be instantly replaced by someone else aligned with the government's policies.

Quote from: Rruchi man on November 18, 2021, 08:24:19 PM

Are the banks working for the people or the government?

Of course banks are working for the government and for their own personal benefit. What the people want isn't important for them, that is a secondary matter.

Quote from: Rruchi man on November 18, 2021, 08:24:19 PM

is there any possibility that banks can operate freely entirely from government policies?

Banks can't operate freely, because every countries have regulations which force the banks to adapt to them. The problem is when the country abuses these regulations in order to limit citizens' individual rights and to increase taxes abusively. In this case the best thing to do is to move yourself to a foreigner decent country faster as possible to live worthily.

herurist

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Even if they can but they will think again about doing this because the risk is very big, apart from they will indirectly break the ties that have been neatly intertwined with the government, they must also be very clear that it will not be possible to be funded again if they want to oppose the policies of the government. this government and it is going to be a big loss for the banks if they do that.
it will be easier if they obey and follow what the government instructs them to do.
Surely they will not want to take risks with something like this because the profits are very small for them compared to the losses they get.

teosanru

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Quote from: Rruchi man on November 18, 2021, 08:24:19 PM

A recent situation in my country where the banks have been instructed to block accounts related/associated with crypto trading has prompted me to start thinking if these banks are actually happy carrying out government policies against their customers, because some of them seem not too happy about it but look to have little or no choice on the matter.

Can the banks challenge the policies from the government? Are the banks working for the people or the government? is there any possibility that banks can operate freely entirely from government policies?

(Read news article here)

I think Nigeria moves exactly around a year behind India, a year ago Indian banks too had a similar stance on cryptocurrencies, they were banning the bank accounts which did such transactions but now they have changed their stance altogether, with an increase in the number of users and elections coming in next year, they have softened their stance towards cryptocurrencies and now they have thought of just regulating the cryptocurrency, I think you people too should just wait for things to settle and ultimately the government would legalize it as they wouldn't have any other option considering the number of users.

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Banks are part of the government. When banks were asked to follow government policies, there is no option to go against it. But, there'll be always an alternate way available for the same. I've experienced it in my country. Earlier in my country a situation prevailed with banks to stop/block services for cryptocurrency activities. By that time I used to use the banking services through the alternate way termed hawala transactions.

Reid

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That's the hard part of being in the banking industry. That's why they always say cryptocurrencies will vanish them but we all know it should not be that way. It's the government that needs the tweaking to adjust the financial industry especially in this times. Pandemic.
Why should they be the wall in the upcoming future? Tax!
They don't want people making money and leaving them behind not having part of what they make. While banks will like the money flowing for it to be invested and make more.

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Quote from: Leviathan.007 on November 19, 2021, 11:59:16 AM

I guess what they do is very much normal and this happens in another country where there are many crypto holders and investors.

No it is not normal or to say very normal. How can it be normal to ban people trying to survive legitimately. To start with too, the world is growing and becoming a global village, the digital space and cryptocreency is taking the financial system to another level and a country is trying to pull her growth down and decreasing her GDP because when people create wealth from cryptocurrency they can support their families, give aids financial support for smaller business owners in the family .

Nigeria is not anti progress (or an Islamic country) if not this recent attitude from the present administration that is running a second term of 4 years, the government has been on rampage with anything to do with public benefit including the ban on Twitter while the minister was caught using VPN to access same twitter they ban. This is just a government that is not progressive with the youths, social amenities, jobs and security are lacking so what is the option ?

It is not normal to do that while some countries are adopting bitcoin already. And looking at the government decision with keen thought, almost all Islamic countries are not friendly with cryptocurrency, social media and public freedom.
We can't say what all the effort of this government is anyway.

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Quote from: Rruchi man on November 18, 2021, 08:24:19 PM

A recent situation in my country where the banks have been instructed to block accounts related/associated with crypto trading has prompted me to start thinking if these banks are actually happy carrying out government policies against their customers, because some of them seem not too happy about it but look to have little or no choice on the matter.

We only see what we want to see. The other side is never explored, what leads to such decisions is often important to be understood, major reasons being money laundering. Although Nigerian Banks have their own reasons to launch their own cryptocurrency, this should not be taken as a representation of the rest of the banks in this world, after all not every country and policy is represented by a single country.

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Can the banks challenge the policies from the government?

Banks have to follow what the government tells them to do. Banks cannot run completely autonomously.

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Are the banks working for the people or the government?

Any institution runs only for itself. They change their stance depending on which one keeps them safe and running. So if needed they may run with the government, which is usually the case.

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is there any possibility that banks can operate freely entirely from government policies?

No. They have to run on the land and they have to follow the law of the land is the broad explanation.

Mpamaegbu

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Quote from: Rruchi man on November 18, 2021, 08:24:19 PM

Can the banks challenge the policies from the government? Are the banks working for the people or the government? is there any possibility that banks can operate freely entirely from government policies?

No one seems to want to risk daring this present government of Mohammad Buhari for fear of victimization. The few speaking out, aren't in the government and when they do speak out they're either termed opposition or wailers or embittered for speaking truth to power. It's really a sad one in Nigeria where those in authority act like demigods and above the law. They choose what laws to obey and what not to obey. This is a government that has made it irredeemably difficult getting employment for people but frown at people going into cryptos to put food on the table for themselves. I'm of the opinion that the leadership of the country simply wants to keep its citizens perpetually poor and out of school for a simple reason that they may easily oppress them. Below is an excerpt from one of the banks in Nigeria to its customers. It's a warning not to indulge in cryptocurrencies.

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Quote from: Rruchi man on November 18, 2021, 08:24:19 PM

A recent situation in my country where the banks have been instructed to block accounts related/associated with crypto trading has prompted me to start thinking if these banks are actually happy carrying out government policies against their customers, because some of them seem not too happy about it but look to have little or no choice on the matter.

I think that they are secretly happy about this, even though to the clients they obviously have to appear as if they are forced against their will to do this.

It's simple. Crypto and DeFi pose a real risk to traditional finance, and right now, regulation is working in the favor of these banks.

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Can the banks challenge the policies from the government? Are the banks working for the people or the government? is there any possibility that banks can operate freely entirely from government policies?

Well, technically they could. But why would they risk their relationship with the government for their clients?

To answer your last question - that is why DeFi exists and why it's important that we continue to spread this message.

Hydrogen

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Banks fund nobel prizes, organizations like the IMF (international monetary fund) and media publications like the economist. They are more active in societal and political spheres than some might realize.

Cryptocurrencies and banks may end up being rivals and competitors like coke and pepsi, intel and AMD. It could be difficult if not impossible for banks to win if it is true that more than 4 billion of the global population is an unbanked demographic. Near to 50% of people in the world can't qualify for a bank account and have no alternatives to cryptocurrencies.

There are also alternatives to linking crypto to bank accounts, such as localbitcoins.

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Quote from: Rruchi man on November 18, 2021, 08:24:19 PM

Can the banks challenge the policies from the government? Are the banks working for the people or the government? is there any possibility that banks can operate freely entirely from government policies?

The central bank is controlled by the government and even if you have a central bank governor who is talking back to the government about their vision, he will be replaced in no time and they will appoint someone who could dance to the tune of the government. There are ways to overcome these restrictions but i am not sure about how equipped the legal system is to monitor every transaction, so i am not going to make a comment on that aspect.

magneto

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And why would they challenge the government?

That would be biting the hand that feeds them. Remember that the government is who gives them funding and cheap credit for them to be profitable in the first place.

To answer your question, no. There isn't a way for fiat banks to oppose governmental rulings, because they are regulated by exactly the government.

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Quote from: Haunebu on November 19, 2021, 04:55:28 AM

BTC was developed to take some power away from banks and governments and transfer it to the people.

In my understanding also, bitcoin was developed for getting people a problem-free banking experience. This way our human race must be entering into something complete new world financially which has been never experienced before in the history of human beings.

Quote from: lixer on November 19, 2021, 01:46:24 PM

we got decentralized banking system in the name of bitcoins. It is definitely free from all government policies and all kind of regulations but only when people are looking for all their activities in crypto space in the decentralized way.

I agree the purpose of Bitcoin will get fade away when we are ready to clear KYC for the reason of availing centralized services even for cryptocurrency related service or products. I am sure people will slowly understand the purpose of being anonymous for their freedom purposes at least in near future.

Coyster

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This is exactly the 'control' the government likes and we have incessantly been talking about it, Governments want establishments, industries, financial institutions like banks, its citizens, etc to answer to them, that's the very reason why they remain unfriendly to Bitcoin cause they can't control it, stop it from working or make their citizens go through them to get it, that's why they continue to impose regulations/restrictions and sanctions like blocking accounts related to dex crypto transaction. I'm afraid the bank can't do anything about this, they have to follow instructions laid down by the government, that's why they are a centralized service, just the same way centralized exchanges have to answer to the government and follow their instructions in some situations as well.

TheGreatPython

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Quote from: Rruchi man on November 18, 2021, 08:24:19 PM

A recent situation in my country where the banks have been instructed to block accounts related/associated with crypto trading has prompted me to start thinking if these banks are actually happy carrying out government policies against their customers, because some of them seem not too happy about it but look to have little or no choice on the matter.

Can the banks challenge the policies from the government? Are the banks working for the people or the government? is there any possibility that banks can operate freely entirely from government policies?

The banks serves the people, but even at that they still have to take orders from the government and they have no choice in a situation like this. If the government should instruct them to close the bank accounts of users who are trading cryptocurrencies, then they are going to do that.

But, I think it is up to you as a crypto trader to be careful how you trade and use cryptocurrency so that they wouldn’t be able to find out. Because for them to be able to find, you must have done something that would lead to them finding out. If you’re simply making use of peer-to-peer methods/decentralized exchanges, then they wouldn’t find out that you’re trading crypto. You have to learn to keep your tracks clean.

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Quote from: Rruchi man on November 18, 2021, 08:24:19 PM

A recent situation in my country where the banks have been instructed to block accounts related/associated with crypto trading has prompted me to start thinking if these banks are actually happy carrying out government policies against their customers, because some of them seem not too happy about it but look to have little or no choice on the matter.

Can the banks challenge the policies from the government? Are the banks working for the people or the government? is there any possibility that banks can operate freely entirely from government policies?

(Read news article here)

Banks, and especially state ones, in their activities strictly adhere to the norms of the instructions developed for them. These instructions are developed by the Central Bank of the country and the Government. And these structures are already guided by special laws adopted by the legislative body. Therefore, there cannot even be a dilemma: who do the banks serve, the people or the government. Any government is supposed to serve the people. Therefore, banks cannot make the least independent decision. All their powers are clearly laid down in the corresponding instructions. If, nevertheless, a question arises that is not regulated by the instruction, the bank must suspend the decision and seek clarification from the Central Bank.
The banking system is very rigidly centralized and there is no place for an independent solution.

dothebeats

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Pretty sure they are happy to carry out any directives mandated by the government. The banks and the governments are practically buddies; without the government's protection on some matters, the banks won't make any profit and thus will likely not operate for long. Even if they might hate some orders by the government, chances are they are still profiting a lot because the government protects their interests. It's just a two-way street between these two entities, and on this relationship, the banks are at a disadvantage since the government can practically do everything and can exist even without the banks while this cannot be said on the banks.

Topic: Fiat banks and the government. - page 5. (Read 563 times)