Topic: Why are banks against cryptocurrency? - page 2. (Read 1223 times)

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.

Governments are using the banks, infact the banks are governments outlets of control which they use as an agent or tool to have people still round themselves with the depemding on governments for their life's. personally I hate control especially by the governments (group of cartels that don't want the ordinary man to be successful), or reach the next social status.

Bitcoin won't kill banks, we must be realistic with this but banks surely feel threats from Bitcoin. Even so, fear of banks, governments don't mean Bitcoin is here to eliminate banks, fiat currencies in many formats from physical, digital to CBDCs.

The existence of Bitcoin WAS a big threat to banks. But not anymore. Especially when many people are treating BTC as Gold. Not digital cash. With "Wall Street" in the game, banks have won. They can now manipulate Bitcoin's market prices by investing in spot ETFs. Institutional investment companies now hold all of the cards. Is this what Satoshi wanted? I guess not. Bitcoin's original purpose was to eliminate the middleman. NOT embrace it. We're moving one step backwards.

Given the fact that most people are only into crypto to make a lot of money, we should expect BTC (and similar coins) to remain an alternative to Fiat. Banks will only get bigger and stronger than ever with the introduction of CBDCs. Let's move on, shall we?

Banks have been a place where rich people have tasted customers' money for many years and the existence of Bitcoin is a big threat to the continuity of their business because anyone, anytime and anywhere can send large amounts of money directly without any other party being involved. which is disturbing and this is the mission of creating Bitcoin by Satoshi.

If banks are smart then they have to cooperate with Bitcoin, not just go against it.

... Bitcoin offers more than what banks can offer, and people already see Bitcoin as legal tender, and Bitcoin has been recognized as a payment method in some parts of the world some people still don't want bitcoin but that is their problem people that want will continue investing.

The finance network is becoming more competitive than we expected and the banks always want to be number one in the finance chain, Banks have failed to update the systems they don't have anything to offer other than to help you save money and there will be monthly charges for maintenance and many more. but aside from the bitcoin network, it is an investment that, whenever it increases, it increases alongside your money, Investing there might be risky but it is better than leaving your money dormant. you will gradually profit from your money invested without stress or even anyone knowing what you are doing with it. and Bitcoin being decentralized makes it overly interesting. your privacy is secured.  and they are not happy with the inception of Bitcoin the fact is that Bitcoin offers more than what banks can offer, and people already see Bitcoin as legal tender, and Bitcoin has been recognized as a payment method in some parts of the world some people still don't want bitcoin but that is their problem people that want will continue investing.
 

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.

As the first cryptocurrency, Bitcoin has also faced some criticism, especially from the centralized financial sector.

Centralized financial institutions may be unhappy with the concept of decentralization because it challenges their long-standing monopoly. They may worry about losing control over financial transactions and having difficulty profiting from a decentralized system. This is one of the reasons why they may express opposition to cryptocurrencies.

However, as time goes by and technology advances, we may see the centralized financial sector begin to accept and adopt blockchain technology. In fact, some banks and financial institutions have begun to explore the use of blockchain to improve their business processes and provide more efficient services. This shows that despite the existence of competition and opposing forces, innovation and change are inevitable.

In this competitive market, we expect to see a variety of different choices and perspectives, and to drive the development of the industry through transparent, open and equal competition. This will help improve the efficiency and reliability of the entire financial system and provide users with better choices and services.

Banks who oppose Bitcoin and other cryptocurrencies certainly have reasons for this because they are actually very afraid that many of their customers will run away from them and no longer keep money in the bank. Moreover, if some people advise not to save money in the bank, if we want better profits from saving the money then there will be many people who will switch to saving something else rather than just saving money in the bank. And the choice itself could of course be Bitcoin and other cryptocurrencies or other important assets whose value often experiences spikes every year.

Exactly both parties are against Bitcoin and cryptocurrency.Before banks will give strict restrictions on Bitcoin transaction they might have received informations from the government,they work hand in hand to regulate Bitcoin and cryptocurrency transactions.Bitcoin doesn't have the form of a traditional currency so it can't be controlled by centralized entities.Bitcoin can't abide to the terms and conditions of banks,just like eliminating transparency in the Blockchain network,the network has always been transparent and what makes you think that if the network is controlled by centralized entities it will be transparent,they are definitely gonna eliminate transparency which is impossible.

Banks have been a place where rich people have tasted customers' money for many years and the existence of Bitcoin is a big threat to the continuity of their business because anyone, anytime and anywhere can send large amounts of money directly without any other party being involved. which is disturbing and this is the mission of creating Bitcoin by Satoshi.

If banks are smart then they have to cooperate with Bitcoin, not just go against it.

FIRST WHAT'S CRYPTO CURRENCY? A digital currency in which transaction are verified and records maintained by a decentralized system Using cryptography, rather then by a centralized authority. The crypto currency are not centralized authority, so banks don't allowed them. Which are characters
in 6 ways.

 (1) SO WHY BANKS ARE REALLY AGAINST CRYPTOCURRENCY? Cause the volatility of cryptocurrency markets are concerns over security and regulations. They've made many banks cautious about involvement in the crypto space. Some banks have even banned the use of cridit cards for purchasing cryptocurrency, reflecting their hesistancy to embrace the emerging technology full. If only the cryptocurrency are ready to make a good terms with the banks.

(2) AND WHY DOES CRYPTO CURRENCY DISRUPT BANKING AS WELL? First from the Centralized to Decentralized finance. The cryptocurrency operates on Blockchains, distributed ledger that records transactions across a vest network of computer. This erases the need for central authorities , creating a more open and transparent financial system. And this also causes the risks for banks.

(3) CRYPTOCURRENCY RISKS FOR BANKS?  Risk of fraud and scams among crypto-asset sector participants. Legal uncertainties related to custody practice, redemption, and ownership rights, some of which are currently the subject of legal processes and proceedings. And this lead to why they aren't accepted in banks.

(4) WHY IS CRYPTO NOT ACCEPTED IN BANKS? The main reason banks do not accepted Bitcoins as legal tender, is because they aren't backed by a central authority. Such as a government or central bank, unlike traditional currencies, Bitcoin is not regulated or guaranteed by any third party. And this will also make the banks to get scared of linking up with crypto currency.

(5) THE REASON WHY BANKS ARE SCARED OF BITCOIN? Perhaps the most existential threat Bitcoin poses to banks, is because the potential to render traditional banking systems obsolete. As more Individuals and businesses adopt Bitcoin and the cryptocurrencies for their financial transactions, the need for traditional banking services could diminish. And it gonna affect the banks increases accessibility.

(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.

In December 2022, the Basel committee on Banking Supervision (BCBS) announced a new standard for banks which sets a limit of 2% on crypto reserves, defines how to classify cryptocurrencies and makes provision to minimize the risks associated with cryptocurrency exposure.

https://www.google.com/search?client=ms-opera-mini-android&sca_esv=8ffd5b3fe64f0225&channel=new&q=Cryptocurrency+risks+for+banks+2021&sa=X&ved=2ahUKEwjdqoux45-GAxXrgf0HHc92BmwQ1QJ6BAgEEAY.
Click on the link to no know.

So what I'm ultimately getting out here, is that crypto currency can't go in line with banks. What are your thoughts towards this?

Both banks and governments are against bitcoin,the bank is government,the government works with the bank as well.Therefore,prohibiting bitcoin from operating freely is highly a setback to bitcoin.The government would always want to promote whatever they're In charge of,so if it doesn't work to thier expectations and how they should operate then it becomes a problem to them.
Bitcoin is not backed by government,bitcoin only operates as a peer 2 peer network system,thereby fixing the issues that fait seems difficult to handle.
The transformation that bitcoins adoption has created has laid traces and lasting changes in financial technology.

What do you expect in a competitive market? In as much as bitcoin is important, fast and easy to use with the potential of volatility, people will still criticized it. Expecially those other centralised financial sector . Whenever something is the opposite side or version of the first one,  it becomes an opposing force. just like the two name are the opposite meaning of each other which are "centralized" & "decentralized" you wouldn't expect centralised financial sector like bank to be happy about decentralized when they know that Bitcoin or crypto is what they never emergined to have existed. Though if crypto would be in their control and they can make profit from it they will have accepted it and used it as ann alternative to there centralised system. But since the blockchain technology doesn't support to be controlled by some entity, it becomes difficult to accept and they Start fighting against it to be an anti centralised.

Banks conduct their business through customers' money but when customers invest their money in Bitcoin with the help of banks, the bank will lose assets and their business will be affected. and because Bitcoin is still largely illegal, banks may be against it.  But all in all, if the banks were getting good profit from Bitcoin then they would be right to support Bitcoin instead of against it.

Banks and governments fear Bitcoin because the high volatility of Bitcoin will always destabilize a country's economy if every country uses Bitcoin as FIAT money and if the government keeps Bitcoin as a reserve currency.  And if the bank supports bitcoin then the bank will lose their wealth because the customers will be more inclined towards bitcoin which is more profit from bitcoin than the bank. And even if the bank's money is under the bank's authority, Bitcoin is completely under its own control

Bank are afraid of cryptocurrency, especially Bitcoin precisely, because Bitcoin has been created with a specific number of 21,000,000 total supply, and transparent in every transaction and trade being made, in which our local bank's are not specific and transparent to give actual account and local money keep printing more money, but Bitcoin is not printing/creating more Bitcoin. But rather is maintain the specific figure and that is the major reason why Bank are afraid of cryptocurrency and is highly demand.

I don’t think banks are the ones against Bitcoin. It should be the government that is against Bitcoin because they don’t have control over it. The banks actually report to the government and because Bitcoin isn’t doing the same, they don’t like it. Because starting from tax and other things they’d have implemented or rule they’d have set, they can’t. Bitcoin takes out the middle man and the government can’t do nothing about it, no matter much they dislike it.