Topic: The Relationship Between Cryptocurrency and Traditional Banking (Read 732 times)

 Cryptocurrency are not threats to the banking system,they are simply existing predominantly and making lasting changes in the history of economics just to promote financial stability.

 The only threats that I see as a threat is that traditional banking system are scared of losing their large generation of customers in the hands of crypto assets,because they feel that they are investing huge sum of money into cryptocurrency and that way there're promoting the growth and stability of crypto assets.

  With reference to information and news content drawn,a recent study by Piplsay shows that 38% of Gen X, 49% of Millennials and 13% of Gen Z own cryptocurrencies.Gen Z is relatively obsessed or connected with cryptocurrencies,that is to say banks are gradually losing their leading roles,as in an important leading role to the crypto industry.
 Although it doesn't really seem like a threat,but all of these are challenges that the banks will need to face and overcome.

   The relationship between traditional banking are,

   Cryptocurrency is getting more totality and advanced into a better state of relationship ,it also gives an option to traditional banking method,  gives instant transactions and low fees.

Cryptocurrency can use the service of traditional banking to give their customers easy liberty to Fiat currency,in other for it to be easy for customers to buy and sell cryptocurrency.

   Traditional banking can use cryptocurrency to improving payment services by using blockchain technology to fasten and reduce their cost of payment internationally.

   Traditional banking can give custody to cryptocurrency by making customers to keep their cryptocurrency safe and secure in the bank.

   Many cryptocurrency exchanges and wallets request users in linking their bank account for proper fund transactions processes

You conclusion is correct but the reasoning is wrong. A certain bulk of bitcoin bought back in time is worth more that the buying price is not the reason why banks dont like bitcoin.

Banks are centralized and they are censorship prone, while bitcoin is not so. This is why banks dont want people to invest in bitcoin. But it is also true that without the banks you will face monetary problems depending on where you live because living on crypto is not complete yet.

The trading profit from bitcoin is not be considered here - indeed it does give much returns in that but that was never its main purpose.

I'm afraid so. We can blame developers for not prioritizing decentralization. Crypto would've been a threat to the existing banking system by now. 



The dream has always been to use crypto and avoid banks altogether. Why do you think Satoshi created Bitcoin? Because he wanted us to trust a decentralized cryptocurrency instead of banks which subject to corruption, manipulation, and fraud. These same entities are the ones responsible for the fractured global economy. Just because they have a "money printer", doesn't mean they can do whatever they want.

With Bitcoin, the power is given back to the people. One would hope it doesn't turn centralized in the long run. As long as individuals (not corporations) hold most of BTC's supply, there should be nothing to worry about.

We are far from the misconception that Bitcoin is a threat to the traditional financial system,  banks have misled governments on the real ideology and role of Bitcoin in the economy and for sure cryptocurrency is just an alternative and not a replacement for the traditional financial system.

But now some countries are beginning to have a better and clearer understanding of what role cryptocurrency plays in the financial system and at that, they are beginning to take advantage of the freedom and independence that comes along with cryptocurrency,  but for now, in my country I haven't seen any bank in my country making public ownership of bitcoin or any other coins since the central made a reversed statement on the ban of bitcoin and other digital currencies

Actually cryptocurrency is not a threat to traditional bank but traditional banks see Bitcoin as threat reason been that imagine now 2022 you kept $20,000 in your bank account how much interest I will bring and you bought Bitcoin worth $20,000 in 2022 how much interest you will make by now
So traditional banks use our saved money for other businesses since we keep our money in Bitcoin to give huge profits over the year so the traditional bank sees bitcoin as threat

They are threatened because they have been doing the best they can to sabotage the rise of bitcoins and they not gonna stop until they have also full control of it since it was launched more than a decade ago. They don't like to have competitors since they are already crowded and they have been doing good business before bitcoin's era. When you see some group on the internet saying bad things about bitcoins and they are always hostile against it, know that it is one of their people and they might come up with some new hoax again, thankfully people always ignored them since Bitcoin's price has kept rising since its beginning.

It's definitely wrong for Traditional banks to feel threatened by bitcoin and other crypto, I know they feel the threats because of its decentralised nature rather they should see potential in a mutual form and opportunity for a new financial system. But I do believe with time traditional Banks will get along with cryptocurrency like bitcoin unless they want to be left behind with the increase potential of bitcoin growth.

It all started with the fact that cryptocurrencies were supposed to replace the established euonomic system - this was the super goal of all crypto enthusiasts.
But after hundreds of regulations, now we all go through KYC, speculate and want money. And the banking system is only glad of such behavior. Now they are not in danger, and they earn money by speculating in cryptocurrencies.

Because they know that fact and we as senior Bitcoin investors, users know about that fact too. Banks integrate crypto into their payment system because they know cryptocurrencies won't replace and kill fiat currencies. They know that by deploying integration, their banks will get more money flow, more income and have better balance sheets.

Cryptocurrencies and banks will interact with each other, co-exist and benefit each other.

I like to have choices and honestly I still use bank transfers. Not all of my fund transfers is processed through cryptocurrencies.

Only newbies think that cryptocurrencies will completely replace and kill fiat currencies, banks some day in future.

They're integrating crypto in their system because it doesn't pose a threat to their very existence. Do you think banks and governments would embrace the revolution if it was truly-decentralized? I think not. While BTC is decentralized, it has a set of issues (scaling, volatility, etc) which prevents it from replacing Fiat currencies altogether. It will never become a threat to banks' very existence.

At least, people will have a choice between centralized banking and decentralized finance. As long as we're able to get true financial freedom and privacy, nothing else matters. Who cares about banks, anyways?

Cryptocurrency has never being a threat to traditional banking, as a matter of fact if banks are smart it should be an opportunity to make more income for themselves. Some countries ban cryptocurrency because of their inability to make provision to help curtail how people launder money with crypto, as time goes on some countries are already unbanning it. Countries like India has a full support for cryptocurrency where an exchange like Bitget is also supporting them with resources for adopting cryptocurrency in the country.

Of course it's not a threat to banks. After all, most cryptocurrencies are centralized. One way or another, they depend on a middleman (centralized exchanges, a few powerful validators/stakers/miners, etc). Banks should be happy with the path crypto is heading to. Especially now with the approval ot Bitcoin spot ETFs by the SEC.

I'm afraid decentralizing the economy will be a long and distant dream. Gone are the days where developers actually cared about making crypto/Blockchain tech more useful instead of focusing on making money (hype). The growing number of worthless "meme" coins and NFTs, tells us that devs are prioritizing quantity over quality. I wonder if banks will eventually "destroy" the crypto industry with the launch of CBDCs? Only time will tell. At least, it was good while it lasted.

Since the beginning of time, financial transactions have counted on them. Cryptocurrencies like Bitcoin arent just extras for banks. Finance might change if it is more open and includes more people.

Bitcoin is an interesting option to banks because it lets people send money to each other without going through a middleman. Trust in economic transactions over speed or efficiency needs to be rethought. Bitcoin is safe and clear because it is decentralized, which banks cant match. Not just changing the banking system, but making it fairer.

Its not true that bitcoins arent used every day; more and more people are starting to use them. Before they became popular, cash and credit cards were useful. As more people use and get access to Bitcoin, it could replace or make banks better.

It's the same old story: when a new idea, product, or service comes out, and it's usually something better and improved compared to whatever is already available, there are two different kind of reactions from the competitors: those who complain and try to take it down and those who are smarter and see the possibility to improve their own business. Banks are doing the same: some are taking advantage of cryptos while others are trying to fight them. To me it's pretty pointless trying to stop the future but they, everybody is different.

I don't think that cryptocurrency are a threat to the conventional banking system. They can actually coexist. There are so many things the conventional banks can learn from cryptocurrency if they will be humble enough to embrace the Blockchain technology. It will actually help them, but they would rather wanna keep everything in the dark so they can perpetuate their criminality.

It's a battle between centralisation and decentralisation. Banks are there for centuries and we know they are controlled by centralised institutes like governments or group of people. Bitcoin financial system is different in a sense that its decentralised and can't be controlled by few entities. The governments have no objection in allowing Bitcoin that is centralised i.e. being traded on exchanges like binance which in turn do KYC but don't allow decentralised Bitcoin which can't be traced or taxed.

The rise of the bitcoin demand already increases the bank fear about the cryptocurrency.This was the reason for many exchanges are saying to link your national identity with the exchange.This was made to monitor the money transactions on your bank and you will be charged for the income taxes to the government.If the money was high,the tax percentage for the transaction to the government will be high.This was reason for the many countries legalise the cryptocurrency in their countries.So the transaction was easily find by the bankers,withdrawing the funds from the exchange to the bank will reduce some money to the traders in exchange.

At the beginning of the emergence of cryptocurrencies such as Bitcoin, there was a lot of news circulating as if banks and crypto could not coexist. However, now we can see that the two are starting to coexist and even have a mutually beneficial relationship. Even now, Central Banks are also interested in digital technology which is also used in cryptocurrency such as Blockchain. So CBDC has been launched and tested in many countries and the results are also quite positive. From this alone we can see that the two can indeed coexist. Even after the Bitcoin Spot ETF has now been approved by the SEC in America, this also has good potential for wider adoption in the future. And this is just about the origin of only one choice in a centralized system and now the choice has branched into two, namely with Bitcoin which uses a Decentralized system.

To a certain degree, the rise in the value of cryptocurrency such as Bitcoin can truly be said to be a threat to traditional banks, in the sense that when the value of Bitcoin starts to rise, people who had money in banks most times are always prone to withdrawing their funds to invest in Bitcoin so as to reap a little profit as the market soar higher, rather than leaving the whole funds in bank where it yield no profit. But still yet, the role of traditional banks can never be underrated as a medium which aided both the buying and selling this cryptocurrency. Hence, a constant increase in Bitcoin will always lure many into withdrawing their bank funds so as to invest in Bitcoin

I feel like the goal is to coexist. Traditional banks fight for survival so it's normal for them to go against crypto that poses a threat to their revenue. For those who think that crypto doesn't pose a threat to banks - it does because banks have small margins. Without those margins they will go bankrupt. If crypto takes 5% profit from banks it's a huge threat.
You may think that 1% is nothing, but imagine that a bank takes 10% real revenue and that revenue has to be split between employees. You take 1% from that ant that directly influences how much they're making yearly. You take 3% and it could mean layoffs.

Nope- I do not think that cryptocurrencies pose a threat to traditional banking methods and banks in general.

Remember that paper currencies will always prevail due to the regulation and strict implementation of cryptocurrencies across all countries. If you can also see, paper money is the main method of currency that is being used as the medium for each country. Not to mention, there are several countries that prohibit the utilization and usage of BTC on their country which poses another problem for the latter.

The only time that cryptocurrencies will pose as a threat to traditional banks is when there is a massive shift in a form of currency, which I do not think that will happen anytime soon even in the near/distant future.

I personally don't see that as an advantage, it may be in some certain cases that I currently cannot think of, but sometimes, your address can be linked back to you. For instance, someone who views my signature campaign's spreadsheet can find my Bitcoin address and see how much Bitcoin I'm holding. I know that there are other coins more anonymous, and that Bitcoin is pseudonymous, but you get my point.

Banks are very important nowadays and are very helpful in any field, yes, even though the existence of crypto doesn't mean it will eliminate banks. the only advantage of the crypto world is that transactions can be seen by the public. It's different from a transaction bank, only the bank can know and it's private. The two concepts of banking and crypto are mutually beneficial

The whole economy would collapse if banks were to disappear tomorrow because the capitalistic system is too dependent on them. Unfortunately, they're a necessary evil; you're getting paid through banks, conducting payments via transfers or cards, and withdrawing money. The current economy wouldn't function without them. Although cryptocurrencies can also conduct transactions, most of the time even faster than the banking system, they haven't been adopted for daily usage and aren't as convenient as simply paying with a credit card.

Fighting the banking system is wrong; I don't think cryptocurrencies will ever be able to replace them. I don't think that was their purpose anyway; they're meant to co-exist, although only a small part of the population has adopted them.

If traditional banks should disappear today, I would miss them and this is most likely true for most other people in the cryptocurrency ecosystem. A reason why we all use the traditional banks is that in the past, it was need and kind of the only choice or offer on the table. Look countries that are still developing a good number of their population are not "banked". Basically, banks are just payment services that aren't really doing anything in terms of value to their community other than bringing in profits for their shareholders.

This is where the banks are getting it wrong. The banks think that crypto currencies are threats to the banking sector and which is not true because they do not know what bitcoin is. The banks can help people to save their gold and other jewelleries which are assets but failed to save bitcoin and other crypto assets for people. These things are like physical assets but the difference is that they are digitally created and they remain digital. It would be good if banks provide crypto services to their customers or they can continue to miss. If they do not do, there are many ways to buy and sell cryptocurrencies without the need of bank. Even banks are custodian means which is not a recommended and advisable. I prefer noncustodial means.

IMO, cryptocurrencies are a threat to the traditional banking system. The major role of banking is to hold money for their customers, then they take that same money and give out loans and funds projects and earn interest from that.
Now Bitcoin is an opportunity where you don't need anybody to hold your money for you. You have complete control over your money (that's if you use a non-custodial wallet of course). So the banks no longer get customers that deposit money with them for safekeeping, they'll have no means of giving out loans so they can't make a profit.

The banks know this and that is why they fight Bitcoin with all they've got.
Bitcoin is like a technology that came before its time, but it comes exactly when it's needed. I don't think people grasp the full potential of Bitcoin. You can be your bank with Bitcoin, no third party whatsoever. In a world where third parties cannot be trusted, we can eliminate them when dealing with our money.

In my opinion, the relationship between cryptocurrency and traditional banking represents an exciting dynamic. We may currently be in a stage of initial acquaintance and adaptation. Some banks are beginning to recognize the potential of cryptocurrency and are exploring ways to integrate it into their services. At the same time, there is concern that the growth of cryptocurrency may threaten traditional banking models. However, I believe this is more of a temporary phenomenon, and in the long term, cryptocurrency and banks will be able to find ways to coexist and engage in mutually beneficial interactions.

some are already starting to integrate crypto in their system or other financial services. they can't stop the adoption of this market and they are understanding the fact that they can't do much in totally stopping this market
the sentiments on this market is changing as more and more governments are legally accepting this market in their financial system. just look at how many countries are making btc as their legal tender? it started from one country and now several countries are already looking at this option.

and besides, as the government is now creating crypto-related financial protocols such as crypto-based or btc-based ETFs, the public is now getting easy on this market. where way way back this market was labelled as fraud, scam, illegal, or any negative thoughts that they can think of, even portrayed to be the currency of hackers/scammers on the net in movies

Exactly. Banks are patronized by governments themselves. Why should Bitcoin align with their ideals in the first place? After all, the cryptocurrency was created in response of bank failures. These powerful entities have realized Bitcoin is here to stay. So they're now "joining it" with the intent of destroying it in the long run (by centralizing it).

The approval of spot Bitcoin ETFs, and regulators becoming more involved in the industry, is the first step towards the demise of BTC as a decentralized and open cryptocurrency for everyone. People don't understand this, because they only want to fill their pockets with money. Just because ETFs promise to boost market demand (and price) for Bitcoin, doesn't mean they're a good thing. We've now opened the "floodgates" for powerful institutions to hoard large portions of the circulating supply. With this move, banks have ultimately won. No one can predict the future, so lets hope for the best.

The traditional market has existed for ages and they have tasted so many barriers and I can say they are still strong but because it's centralized and government control, it is not close to perfect for the people and I they feel threatened by the existence of Bitcoin(not to be confuse with crypto) and that's why often times, they use all they have to banter Bitcoin at any given opportunity.

Didn't you see because of the tremendous growth in Bitcoin, they have collaborate with government to offer Bitcoin ETF, they don't know how to downplay it's performance any longer so they opt for alternative to offer the same service through exchange traded funds and because the government is use to the tax and very greedy, they allowed it so they can get more tax as usual.

Banks are mostly operated by the government which is why it is the exact opposite of what cryptocurrencies is going for

I think it all depends on the bank because I know some banks would be so bent on keeping their clients and not allowing the usage of cryptocurrencies spread more on the other hand some banks have decided on their fates and decided to invest on cryptocurrencies as well

It’s like what they say “if you can’t beat them , join them”

I think soon banks are going to enforce rules and regulations on the cryptocurrencies they want to hold

We really need to do better with this. I am not financially doing "awesome" and a friend of mine who lives in another nation wanted to send me 250$ for me to do something for him, it wasn't really a difficult task, but it required me to go somewhere and handle some paper work for him, and some of that money (about 170) was for the job, and the rest for me as a payment, and I said yes. However, he doesn't use crypto, and Paypal is not allowed in my nation, so suddenly we had hard time even dealing with payment part. If crypto was connected to the banking world, then we could suddenly have banks all around the world moving money around without trouble at all.

I think there is a relationship between cryptocurrency and traditional banking but the relationship is quite complex cryptocurrency are decentralized and do not directly involved bank while traditional banking is centralized and control by banks but some bank have started to provide cryptocurrency service, cryptocurrency is secret currency such as crypto trading or custody service which creates an interaction between the two sector.

With how centralized the crypto industry is becoming, I don't think it will ever threaten mainstream banks. Especially when the world is still stuck with the Fiat standard. Using crypto (particularly Bitcoin) as a unit of account is a long and distant dream. Between scaling issues and volatility, crypto will only remain a speculative investment tool forever.

Now with approval of Bitcoin spot ETFs by the SEC, banks have won. So much for "removing the trusted third party", right? Most people don't care about this as long as their pockets are filled with money. I'm hoping it's not too late and Bitcoin can still deliver its promise of "banking for the unbanked". 

I don't see crypto posing any direct threat to the traditional banking system because the traditional Banking system still have the reservations around the traditional Fiat which is the very first point of exchange to cryptocurrency and even after you acquire cryptocurrency probably as a means of payment or you were gifted, go you still need to convert it into the local fiat to be able to use it in the local market of your country and at this point the banking system comes in because you can use crypto to pull every transactions through your at some point need fiat.

They are both complementary and I don't see any replacing the other any time soon because they both need each other in other to make their transactions work from both ends.

Cryptocurrency does not threaten the existence of banking because after all banking is a necessity for today's society and it is still a choice for people, but it disrupts the transaction system globally. threatening banking and disrupting the system are 2 different things, and Bitcoin stands for disruption.

Bitcoin disrupts the global transaction system and makes it more transparent, decentralized, secure, and has lower fees on transactions between countries, and in this innovation banking happens to still use traditional systems and the technology is already outdated.

and in that case banks may feel threatened because they are afraid that more people will use Bitcoin in their transactions, and now they are starting to change their technology and starting to follow Bitcoin's steps. So in conclusion, Bitcoin actually advances the transaction system in banking and makes it more friendly and faster for its users.

Bank and cryptocurrency are not in competition with each other. They are both serving there purpose individually and non is a threat to the other. We still have a wide population of the world who are using banks and those who are crypto investors.

Anything finance needs understanding be it crypto or even, traditional banks the basics that you need to be briefed about before you can start anything, bitcoin is more complicated than traditional banks because everything concerning the traditional banks is direct you only need to read the rules. Compared to crypto, in terms of regulation, banks are completely regulated and also beneath the government's observation. and I don't banks will give you the profit that Bitcoin gives even when it is not a get-rich-quick scheme, and the only people that get much profit from the banks are big stakeholders.

People still have a lot of trust issues with Bitcoin and because a lot of people are investing in Bitcoin the banks are becoming jealous of Bitcoin and that is why they are trying to make everything more difficult for Bitcoiners. the major thing in Bitcoin is to follow the rules and start from the foundation of it and you won't have much of a problem. And now the folks banding Bitcoin are the once accepting it back.

I might be wrong, but if the CBDCs rumors are true, traditional banking might end up disappearing, as there is no need for an intermediary (the FED or the BCE could directly handle it). In such case, it could be the case that some "bitcoin banks" might show up, mainly due to the fact that self custody will not be feasible for most people, either because they are not technically capable, or due to the fact that on chain fees are too expensive for low value transactions... Don't you guys think that is a possible outcome?

cryptocurrencies will always be related to traditional banks, this is because traditional banks have emerged before cryptocurrencies, and traditional banks will definitely adopt cryptocurrencies later.

in fact, in the financial system, everything is interconnected, it's just that the regulations in each region are different, for example, in countries that legalize cryptocurrencies, traditional banks can be a place to withdraw money or make purchases of cryptocurrencies, but in countries that ban cryptocurrencies, this is strictly prohibited, traditional banks there will refuse because of government regulations.

Bitcoin is a digital assets one need to understand how it works before going into the Bitcoin investment and Bitcoin is not get rich quick business platform, but get rich is sure if you can applied simple techniques being patient in holding, and most country that band cryptocurrency has started reverse the case by accepting Bitcoin in traditional Banking system as a means of payment, after knowing the process on how it's work's.

The truth of the fact is that Bitcoin didn't come to eradicate the traditional banking system, but Bitcoin came to amend it, by granting freedom to private individuals and grant value to our funds invested after a long period of time. Because for Bitcoin to be fully functional both in countries where it is a legal tender and in others where it is not, the only way to access buying & selling can only be through p2p done on a traditional banking system, hereby making the role of traditional banks very important in the adoption of Bitcoin in areas where it's not fully recognize.

About the rise of crypto, which has long been a topic of discourse and discussion among the public, has become very viral now so that some people think that the rise of crypto could be a serious threat to traditional banks at this time. But what I see in my place is that there are still many traditional banks that are still living as usual even though crypto development continues with more and more users every day.

This means that the impact on traditional banks is only about customers who are starting to be reluctant to keep money in their own bank accounts for a long time. Because they prefer to store it in the crypto space so that it can be more easily used when the owner wants to do something that can make it profitable. Whether it's through the market or through crypto projects that can promise more profits.

I agree with your point of view . While bitcoin and cryptocurrency are indeed a major breakthrough in our financial industry , to say that it will threaten the current banking or fiat systems would never happen . We should remember that this world is still centralized and controlled by people with a lot of money so don't expect any decentralized technology to defeat them . I even think that sooner or later bitcoin will become centralized and the cryptocurrency industry will be controlled and regulated by the government. And the government is the one behind supporting banks . So it would be ridiculous to think that bitcoin or cryptocurrency will disrupt what is currently controlled by the government .

When it comes to trust then majority are really that still trusting Banking system that we do know since from the start, it is really just that now cryptocurrency had existed then we have that least having the options on dealing up with something which is out of governments eyes and awareness. Its not really that government or banking system isnt affected with cryptos existence, it do really just turns out that they cant be able to control it out in the first place and this is why they dont really be having no option but rather they would really be expecting on neither would be regulating it or would really be that totally banning it or having those prohibitions. This is why its not really that shocking that crypto did get that support and recognition because of those main benefits that it could give or bring.

To answer all those questions, let's take a look at the facts of how crypto and banking are today.

Crypto is a very popular digital currency, especially Bitcoin, which is now a lot of discussion.
But will Bitcoin replace the banking system completely?
Of course not, bitcoin is only an optional payment that can be chosen or only used for commodities (depending on the regulations of each country).

The relationship between banking and Crypto is now certainly mutually beneficial, and every crypto user needs banking to make withdrawals of profits into Fiat.

But in some countries that ban it completely, there is no way but to follow the rules that have been set.
Crypto and banking are now copied side by side, and each country has their own rules.

Yes, crypto currency or bitcoin may be powerful, but I don't think that the government or banks are afraid of or threatened by the presence of bitcoin. This is because banking has been around for a long time and the banking system runs the whole world; it's where the countries get their money to run the country, etc.

 The banking system is complex, and we can't understand it even if we want to, but they play a very important role in the world, so why would the bank be afraid of bitcoin or crypto? The reason they ban or prohibit the use of bitcoin or crypto is because of its decentralisation; they can't track who is who and where, and they also can't manipulate or control it. In fact, some banks are offering crypto services such as buying or trading, so I think instead of treating bitcoin or crypto as a threat, some banks are adopting crypto as part of their services, which is a good indication that there may be a good combination of banking and crypto currency.

The relationship between crypto and traditional banking is currency. The two is a form of currency and we needed any of the two to get things done paying for bills and other things. Cryptocurrency is a digital currency we can always trade online with a third party in-between like the regular banking system where the bank stand as a middle man between the person sending the fund and the receiver.
Cryptocurrency has eliminate that need for bank to process our Transactions before the receiver can get the fund. Thanks to Satoshi Nakamoto that was able to make life easier without the frustrations we get from banks asking for different credentials before our funds can be processed.

Cryptocurrencies are created on Blockchain technology that give rise to P2P  transaction on their own without third party . cryptocurrency and conventional currencies
does not allow clashing payment  among two groups, it's also a store value . cryptocurrency gives an organized and secured way in storing and transferring cash using quicker processing means, it's fees are lower compared to traditional banking.
Traditional banking are being managed and controlled by governments and agencies

Traditional bank have been functional for a very long time, while Bitcoin has only lasted a decade. The government of most countries who feel threatened by the fascinating growth of Bitcoin and other cryptocureency have ban cryptocureency in their country and they will make sure citizens abide by those laws. The action of the government can tell us that they will never allow the traditional banking sector to get defeated by cryptocureency unless they are very sure that if they approved of it, every thing about crypto will be under their control so that they can also operate the crypto Industry in a decentralized system.

In the crytop space relating to this thread, I would literarily emphasis on Bitcoin which I know better of. Well... So, I would tell you that Bitcoin is a reputable digital currency which is not flexible to lost its potentials.
The threats of crytop over the traditional currencies is the influence of Bitcoin and not the generalized crytop currencies.

I do not think so, banks feel enemy is whatever makes them less money, and crypto could make them more money.

There are banks who are trying to get cryptos as accepted and legal as possible, so that they could basically de facto become exchanges. How? You could use a bank, to store your bitcoin, and then you could also use it to buy and sell bitcoin, maybe not as big as an exchange, not have like 100+ different coins and tokens, but even if we just have bitcoins at our banks, and use our app on our phone to buy bitcoin at our bank, then they will benefit. They will take a trading fee, and the more we use them, the more money they will make .This is not allowed in almost all nations, but if it does, banks will benefit, and then they will love crypto.

I am sure there will be no threats or threats in this case. Traditional banks can also update their transaction systems to be better. They also won't lose users because all people who use Bitcoin and crypto still use banks. Bitcoin users in a country will also still need banks and fiat for transactions in their lives. especially for countries that have not yet legalized Bitcoin and other crypto as a means of payment.
I think more countries will realize that they cannot limit Bitcoin ownership for their citizens.

Well that's really interesting! Sadly in our country it's still a hard to accept any Crypto. Hope one day our country banks do open up for Crypto world.

Here in our country recently, I think only last year, if I'm not mistaken, we have some local banks here that used to not open Bitcoin or cryptocurrency, but now they are open. Second, our government here is also friendly when it comes to blockchain technology or cryptocurrency.

There are many crypto communities in our country, so maybe our other local banks are now open because they have seen a market and that is also true. After all, bitcoin or cryptocurrency will never be a threat to any private companies.

The relationship between the traditional banking system and cryptocurrencies remains one of the frequently discussed topics on the forum. Opinions among crypto-enthusiasts differ on how these 2 systems will coexist, but they lose sight of the fact that the traditional banking system and cryptocurrencies already exist independently of each other, in principle, without interfering at all. Even steps are being taken to combine these systems (CBDC is their pseudo-hybrid model, more like Frankenstein).

The world is in a constant process of change and therefore, I believe that the traditional banking system must undergo major changes in order to continue to exist. But at the same time, I also believe that cryptocurrencies will not be allowed to roam freely in the world economy and I am inclined to believe that, as a result, none of these systems will be preserved in their current form, but something similar to the CBDC will be widely used.

Crypto and banks are created  to help/serve people but the one that make them threatening each others are government and some officials that don't wanted them to blend just that because if that happens for sure they will never have Milk and Butter to the table.
where the money flows is where the tightening of laws comes and that is what3we have proven over the years.though its good to see opening topics like this
for the people to finally understand what is the advantage of both money keeper.

For me, I don't see any "threatened". Both will stay, traditional banking and cryptocurrency.
Because not all people will be comfortable using cryptocurrency only or traditional banking only, some can use both.

So for me, what I can see is there will be always options, just like you are shopping then you can select the mode of payment you will use.

Banks have been under threat for a very long time, and the ETF and other activities will make bitcoin even more unique. Bitcoin can act as a currency and an asset, which is something that fait cannot do. If fait implements such kind of futures, it could potentially destroy the entire financial system, and we live in a new era where practically everything is evolving.  even though they are a part of the financial system, I am aware that the most of them will use bitcoin and pretend to be against it. The entire potential of bitcoin has not yet been shown, but even in the event that it is adopted, we can all agree that it won't have an impact on our banking system because bitcoin is similar to government-issued money.

The government is the only entity opposing bitcoin, and we all know what they want: the ability to control the cryptocurrency and begin levying taxes on it. I don't even think banks have a problem with bitcoin. And when bitcoin first gained popularity, many banks had no problems with it until the government began to restrict it. After that, though, the rest realized they had no control over the matter, and in my country, the ban was lifted, allowing you to do whatever you wanted with your bitcoin at the bank. yet even before then, it is rare to hear of someone being detained for using Bitcoin alone.

Both banks and bitcoin depend on each other to function; without one, the other is impossible. I'm confident that the bank will receive a certain percentage from traders, as that is what the government has requested and is currently receiving. Furthermore, the fact that bitcoin is now more widely viewed as an investment than a medium of exchange makes things better.

There's no such thing about happily ever after on which traditional banks could neither accept or adapt on blockchain technology and not really that directly made out some acceptance about those cryptocurrencies into their institution or simply with integration. They cant really be having that harmonious or mutual thing on both considering that banks are heavily regulated and really that getting in line with government laws and regulations on which means that they cant just easily deal up with crypto or trying out to make those possible integrations. Everything would really be just that requiring that confirmation and verification whether
they should really be doing such act.

Thing here is that blockchain technology is something revolutionary and if ever banking system would really be just making using such tech then it wont be shocking nor surprising
that they would really be sticking on being centralized on which its not shocking about into these institutions. So its better not to expect that much
that both things could collide without any issues.

Crypto is still at its early adoption so there's no reason for banks to feel threatened. Yes, crypto adoption is increasing but majority of the people are still relying on banks with their finances. Some banks are open and have positive view towards crypto. And in fact, some banks are adopting as well and slowly becoming crypto friendly for their users who are also into crypto. Tho there are instances where banks tend to be more cautious when it's involved in crypto. Their relationship is like having to co-exist together, now that the technology is getting more advanced. It's like, both of them are there but it doesn't mean that they have to be "close" or have that happily ever after situation. Crypto is crypto, bank is bank. Some situations may get them involved with each other but not every time.

Crypto was not created to challenge the traditional banking system. So if someone things that the banking system will become useless due to cryptocurrency, they need to rethink. With cryptocurrency people can enjoy surveillance free monetary system which is not possible with the banks. That is the only difference.

The way this market has been progressing I can safely say that banking and cryptocurrency will go hand in hand in next couple of years. Financial corporate have started understanding the power of cryptocurrency and have started embracing it. Slowly but surely that traditional banking system will go that way.

Bitcoin is causing fear among traditional bankers and those operating traditional banking. I don't consider other cryptocurrencies to be anywhere near Bitcoin. Therefore, I will only consider Bitcoin for my argument. Here are my top 5 reasons why Bitcoin is more famous with a common man and why he would like to buy it.

1. Bitcoin is decentralized and traditional banking is not.
2. Bitcoin empowers a common man whereas banking makes the rich richer and the poor poorer.
3. Bitcoin is for everyone and banking only supports those who can maintain a minimum balance and follow their rules and regulations.
4. Bitcoin was created to overcome the uncertainty of Banking.
5  Bitcoin transaction fees are still cheaper than Banking transaction fees for international payment.

When financial institutions come up with an option to create a fund such as ETF then it is clear they are unable to stop Bitcoin.

Banks for feel like cryptos are their enemies. In a way, they are, because without cryptos, people have no other option but to trust a bank if they want to make digital transfers, and while cryptos there's an alternative. But banks are strong and versatile, they offer lots of services that cryptos can't perform. Also, banks have an advantage because they cards are widely accepted, whereas cryptos are barely adopted as a form of payment. Banks can also adopt cryptos, and sometimes they do, but it's still not very common. There's tension between banks and cryptos, but they aren't fully enemies, and they aren't a threat to each other.

There are competitions among cryptocurrencies and traditional banks, fiat currencies but they need each other.

Like Bitcoin need altcoins to have a cryptocurrency market. Altcoins need Bitcoin as a King, a leader of this market and if Bitcoin, the only decentralized cryptocurrency can be killed by government, altcoins will be in brink of massacre and massive deaths.

People use bank transfers, credit cards, debit cards to purchase cryptocurrencies and it helps traditional banks to have more income. Traditional banks with acceptance on cryptocurrencies, will help cryptocurrencies to reach to more users.

Banks are not threatened by crypto payments because so few people actually pay with crypto and the total transaction volume is just a tiny drop compared to global fiat payments. But the competition in the field of investment is more likely to happen - if people would buy Bitcoin instead of opening bank deposits, that could force banks to act. The first thing banks could easily do is to disconnect all crypto exchanges from their system, and that would kill a large share of crypto market liquidity. If that would be not enough, they could start lobbying the government to impose more restrictions on crypto activities. But so far we have seen nothing like that happening on a large scale.

Traditional banking system is already introducing Bitcoin and other cryptos to their platforms. They adopted cryptocurrencies, like all of us did, so there is a strong relationship between them, because the traditional banking system wants to take advantage of the profitability factor of crypto. They are just adapting themselves to the current circumstances of the world, so they don't become obsolete and overcome by common crypto investors.

Here in my banking app, there are many offers of crypto investments to start, from about 0,20$ on, which you can buy and sell at anytime, although you aren't allowed to move your coins or tokens to anywhere. It means you can just buy and sell them for fiat, inside the banking platform. How convenient it is for the traditional banking system to offer this to their customers... In fact, by investing in crypto through these banks we don't actually own our funds, as it remains on their hands during the whole process of holding.

Thankfully it's still possible to invest in crypto by ourselves, without relying on any middlemen services to keep our money. So, even though banking system is already into crypto, it doesn't mean you should make use of them when investing in cryptocurrencies.

Traditional Banks and Bitcoin share no relationship.
One is centralized and another is decentralized.
One operates on controlled and finite supply, another can be printed at will.

Banks can hold Bitcoin just as the would any valuable asset like gold, but this does not mean that both have anything in common.

I'm talking about Bitcoin specifically cause most other altcoins are not centralized and more importantly would not interest the banks when they can simply get their own by creating a CBDC.

The financial ecosystems are connected to each other, and fiat is ruling the world right now. Controlling the traditional banking system is mandatory, and without it, we can't live a life. We can't ignore the fact that cryptocurrency is a threat to traditional banking systems. Because if we can use cryptocurrency like fiat, then who and why will use the traditional banking system? Why do we need to trust banks if we don't need to use fiat? Since fiat is mandatory, we need to use traditional banks. . So traditional banking system dare to cryptocurrency always.
 

I guess it's the former that both of them will end with a happy ending. The adoption is rising and before, the talk was always about the taking over of Bitcoin, crypto over the banks.

But we get to see the whole situation now and it's about the matter of adoption and banks having their own thoughts about having services related to cryptocurrencies.

Before, they're like the mortal enemies but we're going to see the bandwagon or we actually seeing it since countries are having their CBDCs which is inspired by crypto.

Traditional banks lose their revenue not to the cryptocurrency but to third parties. What they say is different from reality. Most often, we see banks revealing revenue differences between two financial years and that the decrease in revenue is due to the growth of cryptocurrencies, which is a false statement. Traditional banks never go down if they're well managed. When advancement is incorporated with traditional banking, the growth will automatically be high. Some banks have begun to follow it with the addition of cryptocurrency-related services. This is a kind of mutual growth that benefits the common people who use the same platform for all their needs.

It depends on how a certain region's system foresees cryptocurrencies. A lot of countries don't want Bitcoin or cryptocurrencies to be available to the general public because they feel threatened since they know Bitcoin and many other cryptocurrencies promote decentralization and financial privacy and they can't let that happen, they want to have control over the finances and financial activities of their people which won't be possible if people are using Bitcoin or some other cryptocurrencies.

However, some countries and governments don't think this way and they care more about the well-being of their country and its future than personal agendas and power, and those are the countries that are welcoming the innovation and are doing their best to make it a part of their economy as they know it can be beneficial for them in the future.

Traditional banking one day will eventually embrace the blockchain fully if they end up switching everything to a CBDC, which is looming and also a bit of a scary potential future for citizens, but this is where Bitcoin comes in handy. The one thing I always say is that of the US government pulls another rug pull on Bitcoin like they did with gold in the 1930s, I don't see that happening because there would be revolt plus it would be a completely exhausting regulatory process and getting people to comply and verify their actual holdings is too problematic

One thing that needs to be clarified concerning bitcoin and the traditional fiat system is that they both have their differences and the people realized about what they needed to have with bitcoin after several years of being tired of using fiat currency, our privacy have long time being taken, the trust in the financial system was not achieved because they can easily manipulate reasons for making deductions on our accounts without any official permission or access, no profitability in fiat, while you can choose to invest on bitcoin and hold for a time making profits instead of loosing value in fiat due to inflation.

The two are fundamentally different, banks are centralized controlled by some entities to be censored and has an inflationary growth while bitcoin is decentralized without any controlling body thus censorship resistant and has a deflationary growth.

Both are complementing each other at this stage because you cannot completely live on crypto even today and you will need fiat or the help of the traditional banking system. Hence the two are not at war but working together.

Banks have seen the potential in blockchain technology and are involving it in their infrastructure too.

Cryptocurrency aka altcoins doesn't threating banks because both of them are centralized, the creator can froze the coins whenever the government, banks or any centralized entity ask them to freeze a specific address.

But if we talk Bitcoin, surely it could threating banks because if every people are educated and choose Bitcoin over fiat, it would make banks can't make money and force them to print money which lead to inflation.

I don't think neither crypto nor traditional banking will ever manage to kill the other, though they will keep trying whenever the opportunity arises.

In the meantime I'd say it's an uneasy alliance of sorts, that will continue existing as long as they can profit off one another -- crypto by using traditional banking infrastructure for fiat off- and on-ramps; traditional banking by having new products to sell. That's a state of things that I don't see changing anytime soon.

Crypto is acceptable to institutions. However, they refuse to accept Bitcoin or even get strong rejection from institutions in many countries.
In a broad scope, when people generally hear the name cryptocurrency, the first thing that comes to mind is Bitcoin because there are quite a lot of types of crypto that come after Bitcoin. People in general think that they cannot be blamed even though Bitcoin is very different from the many types of crypto in circulation.

I think the power of Bitcoin will go hand in hand with traditional banks to the extent that some of them will not accept Bitcoin.
People who know how the traditional banking system works with the Bitcoin system work, they will choose to prioritize Bitcoin, but because they live in a country that still prohibits Bitcoin, maybe they will understand it and secretly also use Bitcoin according to its use.

If you have gold, you can take it to bank for save keeping. Other small valuable assets can be taken to bank. Why is cryptocurrencies different to banks? They are assets too and banks should look for ways to make it a business and to use it for profit-making purposes. We should not be!comparing cryptocurrencies and banks because exchanges is what that should be compared with banks while cryptocurrencies should only be compared with fiat.

Well, I will honestly say that crypto currencies and traditional banking are destined for a happily ever after, this is because  I personally believe that crypto and banks can easily co-exist, I do not think that bitcoin or crypto currencies are standing in the way of the banks, no no, banks believing this is simply out of fear and jealousy.

It's like you opening a ceramics shop at one side of the road and serving customers who are interested in ceramics, and then, like 50 years later, some one else out of the blue comes around and opens another ceramics shop directly opposite yours, you will try to fight that person, because to you, he or she is a threat because he or she take customers from you.

But if you look at it properly, you did discover that he or she is only there to make ceramics even more accessible to people who need it, so, seeing that he has alot of new ceramics design that you don't have, and you don't even know where to get such designs, instead of fighting, it will be better to walk up to him and see how you both can collaborate and become partners in business - this is what I think banks need to do with cryptocurrency, they can partner with Bitcoin rather than fighting it.

Well, these individuals with this mindset are those that are threatened by control adopting Bitcoin rids them of. Imagine when you are in control of the finance of many and all of a sudden, there comes a different and better way by which these monies can be stored, I'm sure you'd oppose it. What's there to feel threatened about, if it's privacy you seek while doing transactions, Bitcoin is the best bet but the government don't want that cause you have brushed the power they have over you to the curb and this is why they spread do much FUD to chase people away.
 In life, there's always going to be choices and Satoshi by introducing Bitcoin presented an alternative way to store money but there's still going to be those who'd prefer the devil they know to the angel they don't.

More like frenemies? Some banks are checking out the cool stuff crypto offers, hoping to lower costs and speed things up. But the whole regulatory uncertainty and crypto's wild nature make some banks a bit wary. Whether they end up partners or keep it casual depends on how they handle the balancing act between old-school rules and the crypto wave. It's a bit like a modern financial system and we still have a lot to learn

When you talk about cryptocurrency, the first coin that comes in mind is Bitcoin. Without doubt bitcoin is the king of cryptocurrency and bitcoin was created by satoshi. In bitcoin whitepaper, Satoshi stated the reasons he created bitcoin and the problems that bitcoin will solve. He didn't in anyway mention that he was creating something that will displace the traditional fiat system, rather he created an alternative to the failing and highly centralized fiat system. It started like a joke but today bitcoin is a strong voice in the financial system.

But one thing is obtainable in every new technology and that is evolvement. Satoshi didn't anticipate the way Bitcoin went and when the government saw the potential of bitcoin, they rose against it on the reason of high energy consumption. The allegations could not hinder bitcoin but more and more industries were adopting bitcoin. When the government truly understood the power of decentralization and blockchain, they decided to join the bandwagon. Now different countries have their CBDCs and you cannot own a CBDC as a country and still fight against cryptocurrency. It will be a gross contradiction. So, the relationship we seek between cryptocurrency and the traditional banking system is co-existence and nothing more.

Cryptocurrencies are not threats to traditional banks. Many countries banned bitcoin and all other cryptocurrencies in the past but after some of them are knowing about what cryptocurrencies are, they unban them. Since today, all countries that accept cryptocurrencies and the ones that are very friendly with them have no problem, there banking sector has no problem. You can even see in those countries that some banks are allowed to hold coins and tokens for their customers. Banks can even embrace cryptocurrencies.

Hello everyone a very good day you all.


So, let’s talk about this interesting duo: cryptocurrency and traditional banking. Some say traditional banks are threatened by crypto’s rise, while others think they’re starting to see the potential and hopping on the bandwagon. Either way, it’s a fascinating dynamic to watch unfold. What do you think? Are they destined for a happily ever after or is this just a temporary fling?

Let me know your thoughts on this.