Why are banks against cryptocurrency?

Abiky

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Quote from: Hamza2424 on June 10, 2024, 11:00:04 AM

A little more in it, they want to hold/control your money to run their own business and they won't be able to do that if you start controlling your own money with alternatives like BItcoin. They wont be able to manipulate many economic policies anymore if you start controlling your money. Simply they will be out of bussnies if they starts to support decntrlaized system.

Of course they want control. Why do you think they patronize Fiat? It wouldn't make sense to support a currency that's outside of their control. The only reason why some governments are supporting Bitcoin is because of the taxation benefits it provides. After all, wealthy companies have shown huge interest in BTC.

It's all about the money these days. But be aware that governments will regulate crypto "down to the bone" to make it difficult for people to achieve true financial freedom. They will control BTC through centralized exchanges and spot ETFs provided by institutional investment companies. Banks will only get bigger and stronger than ever with the introduction of CBDCs. Just focus on "being your own bank" and forget about the rest.

ShaneDiesel

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Banks are often against cryptocurrency because it threatens their traditional business model. Cryptocurrencies like Bitcoin allow people to transfer money directly to each other without needing a bank as a middleman, which could reduce the bank's profits from transaction fees and services. Additionally, cryptocurrencies can be harder to regulate, making it easier for illegal activities like money laundering. Banks also worry about the volatility of cryptocurrencies, which can make them risky investments. Overall, cryptocurrencies challenge the control and stability that banks and governments have over the financial system.

dansus021

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Why are banks against cryptocurrency? Are they really against crypto, some bank is hating crypto but the other is get along with crypto there is also bank that crypto friendly.

But if the question still the same the Central Bank would hate crypto since central bank had right to print more money and distribute the fiat, while the fiat itself has a flaw that crypto are trying to fix so yeah maybe because of that

Psalms23

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Well, banks are often pretty wary or downright opposed to cryptocurrencies for a bunch of reasons. First off, there's the whole regulatory headache. Cryptos can make it tough to follow anti-money laundering and KYC rules. Then there's the wild volatility—crypto prices can swing like crazy, which freaks out banks that prefer stability. Plus, the rapid growth of crypto could mess with the whole financial system.

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Quote from: Blitzboy on June 10, 2024, 08:06:54 AM

Quote from: legendbtc on June 10, 2024, 07:51:51 AM

Quote from: redsun114 on June 10, 2024, 02:49:42 AM

It is also possible that in the future people will stop using bank accounts altogether and start keeping all their assets in cryptocurrency wallets because they don't have to pay taxes to the government or anyone else to keep their assets here or even if they have to, they will at least have decentralization.

As cryptocurrencies become more popular, people tend to gravitate more towards cryptocurrency wallets and less towards banks, which can lead to a cash crunch in banks. This can also be a reason for banks to dislike cryptocurrencies.

As long as fiat remains the world's primary means of payment and governments do not legalize bitcoin or any other cryptocurrency as currency, we will still need banks and fiat. Even if you get tired of the devaluation of fiat currencies and convert all your assets to crypto, but then you will still have to convert back to fiat currency for daily needs.

Even if the cryptocurrency trend becomes more popular, it will never cause banks to weaken or disappear. The role of banks is very important to the national economy, it is considered the backbone of any economy. You probably won't need a bank account to save money, but if you need to borrow money, where will you borrow money if you don't go to the bank? Where will you get fiat to pay your daily bills if you don't go to the bank? So banking is very important and I don't think anyone can live without a bank account.

All of this "crypto versus banks" argument is a crock of garbage. Why not have both? Blockchain is amazing. It is not under government control, speedy, and safe. Still, banks are vital. They provide services crypto cannot, they are safe and under control. Consider it as if crypto is a sleek sports car ideal for a brief escape. Good for a family road trip, banks are more like a luxury SUV. You wouldnt race an SUV on a track and you wouldnt use a sports car to load logs.

Thus, crypto and banks should be collaborating rather than battling. Every one of them has advantages; together, we can design a financial system that is stronger, more effective, and more reachable to everyone. Folks, thats a win-win situation.

Yes, both are important and have their own use cases. If everyone had the same friendly views on things as you do, there wouldn't be any arguments. What you said I completely agree with because that's what I want to say, there will be a more perfect world when cryptocurrencies and banks coexist and develop. But many people don't want that to happen, many people spread that banks are against cryptocurrencies, or that bitcoin was created to replace the current monetary system...many people want to create this war. I don't know what their real intentions are but it's clear that creating these misunderstandings has never benefited crypto or us.

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Quote from: Sakanwa on June 07, 2024, 10:02:00 AM

but I hope they are aware that crypto currency mean no harm to them,

In a way that’s true. Cryptocurrency is an option so as to not use centralized or traditional banking system anymore. Which in itself is not supposed to be negative. We are simply being given an option that we were not presented before. But obviously with the existence of crypto, customers are being driven away from banks which hurt their profits.

Quote

for me no matter the traditional something banks should take their pride and collaborat with Bitcoin. Because it's for their own good but all I know is that it's just the government that keeps the central banks not to work together.

I can see ways how the traditional banking system can benefit from cryptocurrencies but the government do not want to promote cryptocurrencies and some crypto enthusiasts do not want crypto to be in centralized banks.

It would be best to keep the two separate in my opinion.

Hamza2424

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Quote from: JusticeSolus on June 07, 2024, 02:51:41 PM

-They want to hold your money.
-bitcoin/crypto lets you hold your own money.

A little more in it, they want to hold/control your money to run their own business and they won't be able to do that if you start controlling your own money with alternatives like BItcoin. They wont be able to manipulate many economic policies anymore if you start controlling your money. Simply they will be out of bussnies if they starts to support decntrlaized system.

Blitzboy

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Quote from: legendbtc on June 10, 2024, 07:51:51 AM

Quote from: redsun114 on June 10, 2024, 02:49:42 AM

It is also possible that in the future people will stop using bank accounts altogether and start keeping all their assets in cryptocurrency wallets because they don't have to pay taxes to the government or anyone else to keep their assets here or even if they have to, they will at least have decentralization.

As cryptocurrencies become more popular, people tend to gravitate more towards cryptocurrency wallets and less towards banks, which can lead to a cash crunch in banks. This can also be a reason for banks to dislike cryptocurrencies.

As long as fiat remains the world's primary means of payment and governments do not legalize bitcoin or any other cryptocurrency as currency, we will still need banks and fiat. Even if you get tired of the devaluation of fiat currencies and convert all your assets to crypto, but then you will still have to convert back to fiat currency for daily needs.

Even if the cryptocurrency trend becomes more popular, it will never cause banks to weaken or disappear. The role of banks is very important to the national economy, it is considered the backbone of any economy. You probably won't need a bank account to save money, but if you need to borrow money, where will you borrow money if you don't go to the bank? Where will you get fiat to pay your daily bills if you don't go to the bank? So banking is very important and I don't think anyone can live without a bank account.

All of this "crypto versus banks" argument is a crock of garbage. Why not have both? Blockchain is amazing. It is not under government control, speedy, and safe. Still, banks are vital. They provide services crypto cannot, they are safe and under control. Consider it as if crypto is a sleek sports car ideal for a brief escape. Good for a family road trip, banks are more like a luxury SUV. You wouldnt race an SUV on a track and you wouldnt use a sports car to load logs.

Thus, crypto and banks should be collaborating rather than battling. Every one of them has advantages; together, we can design a financial system that is stronger, more effective, and more reachable to everyone. Folks, thats a win-win situation.

moneystery

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Quote from: tranthidung on June 07, 2024, 08:29:48 AM

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With CBDCs, governments will be able to trace your personal finance and money movements but I believe that it will be a new trend, in all countries. It's only different among countries in when, sooner or later, governments will do this with their CBDCs.

that's the reason why i prefer to use fiat compared to cbdc. just imagine the government can see how their people spend their money, from transactions to how much their balance is. all of that is transparent and it can be data that if developed using ai technology will create a system that can control people and monitor their payment activities. because if using fiat, the government may find it difficult to track how people use their money and the government also cannot freeze fiat owned by someone, but with cbdc this is very possible.

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Quote from: GbitG on June 07, 2024, 05:33:29 PM

I think nowadays people love to freedom. So therefore, I believe that many people around the world are getting away from the Central authority and their businesses are slowing or declining instead of surge with time. Thus far as I can tell, for this reason many Bank have become anti-Bitcoin. Because the banking sector depends on the government and the government has the same idea that people should not be given a free hand like decentralization, because in a decentralized ecosystem no one can control you to do this or not do that etc. So my opponion is that there is only one reason why banks do not accept Bitcoin as a currency and that is freedom of privacy.

From what have observed the banks can not a make a move on their own, they need to get approval from the government to either upgrade or even want to take shape. They can just do anything without the backing of the government. And a lot businesses are gradually withdrawing from using commercial banks, in my own region currently they prefer to fintech backs that reduce charges and also have a lightning network. There were times that you see that banks network will start having issues. People are getting tired and for places that they accept Bitcoin is just for you to pay without stress and worry about network if the money is going to hang or not. And people are getting use to decentralization so people want to be solo. But anything backs is centralized so their are disadvantages than advantages when you are using banks. Their is no any financial benefits that banks give. Very on rare occasions except you want to take loan. Even if we have to continue using them but it won't be long.

legendbtc

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Quote from: redsun114 on June 10, 2024, 02:49:42 AM

It is also possible that in the future people will stop using bank accounts altogether and start keeping all their assets in cryptocurrency wallets because they don't have to pay taxes to the government or anyone else to keep their assets here or even if they have to, they will at least have decentralization.

As cryptocurrencies become more popular, people tend to gravitate more towards cryptocurrency wallets and less towards banks, which can lead to a cash crunch in banks. This can also be a reason for banks to dislike cryptocurrencies.

As long as fiat remains the world's primary means of payment and governments do not legalize bitcoin or any other cryptocurrency as currency, we will still need banks and fiat. Even if you get tired of the devaluation of fiat currencies and convert all your assets to crypto, but then you will still have to convert back to fiat currency for daily needs.

Even if the cryptocurrency trend becomes more popular, it will never cause banks to weaken or disappear. The role of banks is very important to the national economy, it is considered the backbone of any economy. You probably won't need a bank account to save money, but if you need to borrow money, where will you borrow money if you don't go to the bank? Where will you get fiat to pay your daily bills if you don't go to the bank? So banking is very important and I don't think anyone can live without a bank account.

GigaBit

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Crypto Enthusiasts benefit most from the way cryptocurrencies are currently progressing, but the banking sector sees it as their main enemy or big opponent. Cryptocurrency is offering more benefits than the traditional banking system. Moreover, traditional banking systems always rely on third parties which is not required in crypto currency.

What are the advantages of using crypto currency than traditional banking system?

# Very low transaction fees
# Asset transfer without third party intervention
# Fast transaction
# Developing financial services for those outside the banking system.
# Secure transactions and convenience of transacting at any time of need.

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Quote from: Ojinga on May 21, 2024, 05:22:06 PM

~snip~

I think one of the things that banks hate cryptocurrency for is the fact that crypto allows people to not need banks anymore, making them essentially useless. You want to keep your money safe from people who would want to steal it? Use a cold-wallet and keep your money in there, problem solved. You want your money to compound in value while also keeping it in the same account? You can hodl your crypto for as long as you please, doesn't matter how, and you can almost always expect to earn money in this process. You want to prep your kids by opening an account for them that you could put money in consistently, probably college funds or whatever? Crypto can also do that.

A business model that can pretty much replace you will certainly leave you quaking in your boots, and this essentially is why I think banks and crypto, at least traditional banks in that regard, will never find a common ground to work with.

redsun114

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Quote from: Clark Anderson on June 05, 2024, 10:39:33 AM

Are banks really against crypto currency?

I think banks are drawn to the efficiency and speed offered by blockchain technology, which can facilitate faster and cheaper transactions.That is why most countries are now adopting and making digital versions of their fiat currency.

I do feel that banks are wary of the regulatory uncertainty surrounding cryptocurrency, as well as the risks associated with its volatility and potential for fraud.

Despite these concerns, many banks are exploring ways to incorporate cryptocurrency into their services, such as custody and trading.

Yes, banks are really against cryptocurrencies even in many countries cryptocurrency accounts are being banned in our country, and my own accounts are also banned for crypto-related payments. The main reason is the cryptocurrency-first service and zero-charge and there is a growing popularity. It is also possible that in the future people will stop using bank accounts altogether and start keeping all their assets in cryptocurrency wallets because they don't have to pay taxes to the government or anyone else to keep their assets here or even if they have to, they will at least have decentralization.

As cryptocurrencies become more popular, people tend to gravitate more towards cryptocurrency wallets and less towards banks, which can lead to a cash crunch in banks. This can also be a reason for banks to dislike cryptocurrencies.

batang_bitcoin

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Quote from: Wakate on June 07, 2024, 05:37:05 PM

When customers put their funds in the bank for a certain period of time, banks are using that money to give loan and also trade which is very easy for them and when huge profits is made, the money goes to the bank or top people at the bank

That is their business model and that's how they are becoming wealthier through the help of their depositors and they will give interest which is a very tiny portion of what they've earned from their money. And at the same time, they can use that money as well not just for lending but also for acquiring assets that they are buying for a cheaper price. So, money is just revolving on them and after the acquisition, they'd sell it with a bigger profit margin.

Wakate

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Quote from: teamsherry on June 07, 2024, 02:47:20 PM

I hardly see banks in any competitions with bitcoin, banks have a role of circulation of fait money and I know that many banksay already be anonymously invested into some crypto project and even bitcoin and its not as tho bitcoin can replace fait as the government approved medium of exchange, IMO bitcoin is here for something different than to compete with banks.

There I no way banks can compete with cryptocurrency which is one of the reasons why making banks are trading cryptocurrency because they believe that it is one of the fastest way to make money when it comes to investments. Banks are really cashing out from crypto with customers fund and some many of them are ignorant of it. When customers put their funds in the bank for a certain period of time, banks are using that money to give loan and also trade which is very easy for them and when huge profits is made, the money goes to the bank or top people at the bank

GbitG

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I think nowadays people love to freedom. So therefore, I believe that many people around the world are getting away from the Central authority and their businesses are slowing or declining instead of surge with time. Thus far as I can tell, for this reason many Bank have become anti-Bitcoin. Because the banking sector depends on the government and the government has the same idea that people should not be given a free hand like decentralization, because in a decentralized ecosystem no one can control you to do this or not do that etc. So my opponion is that there is only one reason why banks do not accept Bitcoin as a currency and that is freedom of privacy.

Obari

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Quote from: Stepstowealth on May 21, 2024, 05:58:47 PM

Quote from: Ojinga on May 21, 2024, 05:22:06 PM

(6) HOW DOES CRYPTOCURRENCY AFFECT THE BANKS? In my own opinion, cryptocurrency have had a profound impact on traditional banking. By challenging the status quo and disrupting long-est abolish systems, their decentralized nature, cost advantages, and increased accessibility have implications for both individuals and financial institutions.

Ask yourself as a business man will you happy when new competition comes up?

Banks will traditionally be against anything that has the potential to affect their business. Traditional banks have been against even fintechs because they reduced their customer base, cryptocurrency has the ability to also affect the customer base of these banks that is why they are against it.

Personally I think the over hype on crypto is what is actually giving it this much hatred and looking from some obvious points, you’ll get to realize that, bitcoin and cryptocurrency wouldn’t really thrive properly without without our local banks and this is because, we still need this local or better put traditional banks to complete a regular transaction atleast in a country like mine.
Bitcoin and cryptocurrency still has a very long way to go for it to stand independently in a country like mine because, most of the local transactions still require fiat to complete a transaction successfully and since cryptocurrency and bitcoin precisely isn’t in a physical form yet, it might be difficult to run a smooth trade in a country were we still have a lot of petty traders who don’t even own a smart phone talk more of operating one and facing the whole rigorous processes of bitcoin transactions and safety.

JusticeSolus

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Banks are against bitcoin/crypto because it makes them obsolete. It is as simple as that, and anything else that needs to be explained is extraneous.

-They want to hold your money.
-bitcoin/crypto lets you hold your own money.

teamsherry

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I hardly see banks in any competitions with bitcoin, banks have a role of circulation of fait money and I know that many banksay already be anonymously invested into some crypto project and even bitcoin and its not as tho bitcoin can replace fait as the government approved medium of exchange, IMO bitcoin is here for something different than to compete with banks.

Topic: Why are banks against cryptocurrency? (Read 1141 times)