Crypto currencies represent a great danger for the banking system.
What steps will bankers take to protect their business?
1) Futures way to keep money from investing in the crypto market.
2) ...?
It's true that cryptos are a risk to the conventional banking system and banks have already realized that fact. So they have two options in hand. One is ban all crypto related transactions inside their system and the second one is to adopt it. Like every thing else, banking and the economical system are going through a major overhaul. Bitcoin, which was initially started as a peer to peer transaction facilitator, has now became a significant economical contributor. So banks are worried because this economical system is out of their reach.
What steps will bankers take to protect their business?
The first step they have already taken by discouraging the crypto investors saying it's an illegal business. It was started by JPM CEO and carry forwarded by DBS and other few banks as well. They thought such statements will make people think twice before investing in bitcoin. But the effect was different. A lot of new investors came to know about bitcoin and rushed to invest in it, resulting in huge pricing surge.
The second step they can take is to ban bitcoin related transactions coming from a known bitcoin broker. There are two banks in India who has already declared that they will freeze the funds in an account if they see any funds coming from a known bitcoin broker. Indonesian central bank already banned bitcoin in their country. So these are the second step they can take against bitcoin.
The last and final step they can do is to embrace bitcoin. It will allow banks to earn a good amount of revenue but such decision is hard to happen as of now. Because the legal status of bitcoin is not clear in many countries. The acceptability entirely depends on the government's policy. Like Japan has already legalized bitcoin and the Banks in Japan are bound to accept transactions related to bitcoin. But we are currently moving through the second phase and a huge dilemma is ongoing about the future government policy. Lets just wait and watch.
