Topic: Why are banks against cryptocurrency? - page 4. (Read 1141 times)
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.
The most obvious answer is that with Bitcoin you don't need a bank.
You can make and receive payments all around the world, 24/7, securely and fast, with no middle man, and no permission from anyone.
Banks want to charge fees for holding your money, charge interest for lending your money, make decisions about whether you can or can't use your money, etc.
If people stop putting their money into the banks, and instead start withdrawing it and use Bitcoin instead you would have a bank run.
https://en.wikipedia.org/wiki/Bank_run
Then the banks don't have money to lend or operate and they become insolvent and have to shut down.
That's pretty much it.
Yes that's right. They are afraid of the presence of bitcoin which is growing day by day, many have even adopted it and has now become one of the assets that can save value from inflation.You can make and receive payments all around the world, 24/7, securely and fast, with no middle man, and no permission from anyone.
Banks want to charge fees for holding your money, charge interest for lending your money, make decisions about whether you can or can't use your money, etc.
If people stop putting their money into the banks, and instead start withdrawing it and use Bitcoin instead you would have a bank run.
https://en.wikipedia.org/wiki/Bank_run
Then the banks don't have money to lend or operate and they become insolvent and have to shut down.
That's pretty much it.
So this is what makes them hate bitcoin because the government cannot regulate and track it. The government wants to be able to investigate your banking activities if necessary, freeze assets, obtain taxes, and so on. Unlike banks, everything is in their control so they can easily arrange whatever they want.
Since it was distributed, Bitcoin exists in many different locations at the same time. This makes it very difficult for one regulatory body to impose its will across national borders. This means that the government or other third parties are technically not allowed to raid an office and close anything down, let alone confiscate or freeze someone's assets.
I think it is because of decentralization which banks cannot gain control as we all know that banks are centralized and are regulated which crypto doesn't not unless it is purchased in a SEC compliant exchanges that was regulated. Competetion would be another reason as well.
Official adoption of Bitcoin by governments will eliminate the need for banks. Banks are centralized and fully regulated, which is completely inconsistent with the principle of Bitcoin and cryptocurrencies.
This is me just thinking out loud.
Who does this affect more? The banks or the government? In as much as we can agree that bans are against Bitcoin, I believe they're against it mainly because the government are against it. The government can monitor its citizens through the banks. Financial records are obtained through the banks. Taxation and every other thing is somehow connected to the banks. The government is for centralisation, that's what they stand for.
Bitcoin takes some of that power away from them and they don't want that.
If the government officially adopts Bitcoin, the banks will still be there. People would still need financial institutions, centralised exchanges would still be a thing and the banks could evolve to adapt, but the government would not be able to adapt because they wouldn't have control over the people who don't use the banks or centralised exchanges
As I said, bitcoin has never had the ability to threaten banks or governments nor was it created by satoshi to create that hatred. Initially, governments and banks were not friendly to bitcoin, simply because bitcoin was a new asset that was highly volatile. They need to be wary of it because they do not know whether it will bring benefits or harm to them and the national economy. But as things gradually become clearer, they feel that it is not as dangerous as they were once wary of, so it is understandable that they gradually become friendly with it. Everything takes time to adapt to, just as many of us were skeptical about bitcoin before trusting it, so why do we think so poorly of banks?
Banks ARE the enemy. They're the main reason why the economy went downhill back in 2008. History repeats itself as one crisis emerges after the other. Satoshi created Bitcoin because of banks' malpractices. He was a cypherpunk with libertarian ideals. Do you think he would've made Bitcoin if the mainstream economy was going well? I think not. It's why so many banks are against Bitcoin and its variants. At least, in the early days.
Now that "Wall Street" is in the game, things are starting to change. BTC is being acquired in mass by institutional investment companies. If things keep up, it will become utterly-centralized (even though network consensus is done by miners, not economic holders). Banks should be more than happy with how Bitcoin is doing now. Even a staunch critic like JP Morgan is changing its view towards BTC. If the pioneer cryptocurrency was decentralized as it was in the early days, do you think banks will support it? I guess not. People are missing the big picture of the ETFs. It's not about making money, but rather controlling everything. I sure hope we come to our senses before it's too late. With CBDCs on the way, don't expect banks to go anywhere soon.
(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.
and this is what banks is feeling about bitcoin and the whole crypto market, but sorry for them as they did not treat us completely good like what crpyo is giving us now.
~snip~
Are you sure about this? Are you using a bank to buy bitcoin and are you using bitcoin to pay your daily bills? And how many relatives and friends abroad do you have who use bitcoin to transfer money? As long as fiat currency remains the world's official currency, there will be no way for you to survive just owning bitcoin. Not to mention, bitcoin is not free and to own it you need money or a bank account to buy and sell bitcoin.
In addition, banks are not only places to deposit savings and transfer money abroad, but also provide many services such as insurance, mortgages and loans, which are probably their strengths. Can Bitcoin provide lending services to businesses and entrepreneurs? Don't be naive to think that bitcoin can replace the role of banks.
Are you sure about this? Are you using a bank to buy bitcoin and are you using bitcoin to pay your daily bills? And how many relatives and friends abroad do you have who use bitcoin to transfer money? As long as fiat currency remains the world's official currency, there will be no way for you to survive just owning bitcoin. Not to mention, bitcoin is not free and to own it you need money or a bank account to buy and sell bitcoin.
In addition, banks are not only places to deposit savings and transfer money abroad, but also provide many services such as insurance, mortgages and loans, which are probably their strengths. Can Bitcoin provide lending services to businesses and entrepreneurs? Don't be naive to think that bitcoin can replace the role of banks.
Bitcoin is not used in mainstream, but you can definitely get a job that pays in Bitcoin today.
You can also pay in Bitcoin for certain things. We are in the process of potentially creating a Bitcoin world.
At the moment there are companies that take your Bitcoin and they process your bills with fiat, so in a way you can live today with Bitcoin only. For example check out this for Australia: https://www.livingroomofsatoshi.com and this for Canada: https://bylls.com
Same with lending: https://ledn.io
The most obvious answer is that with Bitcoin you don't need a bank.
You can make and receive payments all around the world, 24/7, securely and fast, with no middle man, and no permission from anyone.
Banks want to charge fees for holding your money, charge interest for lending your money, make decisions about whether you can or can't use your money, etc.
If people stop putting their money into the banks, and instead start withdrawing it and use Bitcoin instead you would have a bank run.
https://en.wikipedia.org/wiki/Bank_run
Then the banks don't have money to lend or operate and they become insolvent and have to shut down.
That's pretty much it.
You can make and receive payments all around the world, 24/7, securely and fast, with no middle man, and no permission from anyone.
Banks want to charge fees for holding your money, charge interest for lending your money, make decisions about whether you can or can't use your money, etc.
If people stop putting their money into the banks, and instead start withdrawing it and use Bitcoin instead you would have a bank run.
https://en.wikipedia.org/wiki/Bank_run
Then the banks don't have money to lend or operate and they become insolvent and have to shut down.
That's pretty much it.
Are you sure about this? Are you using a bank to buy bitcoin and are you using bitcoin to pay your daily bills? And how many relatives and friends abroad do you have who use bitcoin to transfer money? As long as fiat currency remains the world's official currency, there will be no way for you to survive just owning bitcoin. Not to mention, bitcoin is not free and to own it you need money or a bank account to buy and sell bitcoin.
In addition, banks are not only places to deposit savings and transfer money abroad, but also provide many services such as insurance, mortgages and loans, which are probably their strengths. Can Bitcoin provide lending services to businesses and entrepreneurs? Don't be naive to think that bitcoin can replace the role of banks.
The most obvious answer is that with Bitcoin you don't need a bank.
You can make and receive payments all around the world, 24/7, securely and fast, with no middle man, and no permission from anyone.
Banks want to charge fees for holding your money, charge interest for lending your money, make decisions about whether you can or can't use your money, etc.
If people stop putting their money into the banks, and instead start withdrawing it and use Bitcoin instead you would have a bank run.
https://en.wikipedia.org/wiki/Bank_run
Then the banks don't have money to lend or operate and they become insolvent and have to shut down.
That's pretty much it.
You can make and receive payments all around the world, 24/7, securely and fast, with no middle man, and no permission from anyone.
Banks want to charge fees for holding your money, charge interest for lending your money, make decisions about whether you can or can't use your money, etc.
If people stop putting their money into the banks, and instead start withdrawing it and use Bitcoin instead you would have a bank run.
https://en.wikipedia.org/wiki/Bank_run
Then the banks don't have money to lend or operate and they become insolvent and have to shut down.
That's pretty much 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?
I'm curious: do you think banks and cryptocurrencies can eventually find common ground? What changes would need to happen for banks to feel more comfortable integrating crypto into their services? 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?
Actually most people consider cryptocurrency as the best way of saving their money instead of saving it in the bank because if you save your money in crypto definitely the money will increase, but for bank instead of your money to increase it will still reduce sometimes due to card maintenance or some other charges. that is why most people prefer to save their money in cryptocurrency instead of using the Bank, however the reason why bank is against cryptocurrency is because cryptocurrency is becoming more popular than most of the bank is just like cryptocurrency is now competing with bank and cryptocurrency has gain more popularity than most of the bank, I think that's the reason why bank is against cryptocurrency.
Let's remember that some banks are slowly adopting crypto currency, or bitcoin.
If they can do this without risk for their business, and if they have no fear of vague regulations, they will not adopt cryptocurrency slowly, but quickly instead. They are adopting it very slowly because they are fearful that governments can knock their doors and sanction them because of transfers related to cryptocurrencies.That's biggest barrier to prevent banks joining this market but when regulations are composed, approved and enforced, banks will feel safer when they know what they can do without punishments. It will be start of their massive adoption at sharper rate on cryptocurrency.
The simple answer to your question is that cryptocurrency will replace banks and no one will need banks.
It is natural that people will be more interested in banks if there are more advantages in Bitcoin than in banks. Currently, more interest is obtained from investing in Bitcoin than banks, so the general public is becoming more interested in investing in Bitcoin. But another thing is very important that investing in bitcoins is more risky than investing in banks.
The simple answer to your question is that cryptocurrency will replace banks and no one will need banks.
It is natural that people will be more interested in banks if there are more advantages in Bitcoin than in banks. Currently, more interest is obtained from investing in Bitcoin than banks, so the general public is becoming more interested in investing in Bitcoin. But another thing is very important that investing in bitcoins is more risky than investing in banks.
One of the main reasons why banks are against crypto is because it disrupts their business in the sense of losing customers and investors. they also have some real problems against their competitors but bitcoins are a real threat because it will surely make their business close if most people will only create crypto wallets and save their crypto securely instead of saving their money to the banks. that's why banks are exerting all effort to make bitcoins look bad to the public and they also making some false narratives against it via groups that are paid by them to spread lies and false rumors about Bitcoin.
The simple answer to your question is that cryptocurrency will replace banks and no one will need banks.
It is natural that people will be more interested in banks if there are more advantages in Bitcoin than in banks. Currently, more interest is obtained from investing in Bitcoin than banks, so the general public is becoming more interested in investing in Bitcoin. But another thing is very important that investing in bitcoins is more risky than investing in banks. 
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.
The question is s, who's the bank and who's the government? They are same set of people under the financial system and their interest, policies and objective are twined. The banks are more like an agents of the government through which the government can use to bar and frustrate any other rising financial system that tend to be of a treat to their power of control and bitcoin is one of such with it's decentralized protocol. Which makes puts me in the right by referring the bank as a middle too.Nonetheless the bank and the government are not the same. Understand the difference that the bank is not owned by the government. There are many private owner and they don’t have any personality in the government. However, the government under policies use the bank to do and get whatever they want. And that’s because banks follow policies which are set by the government. So government may use the bank as a tool but they are not one.
Answering OP's question, I never thought that banks or governments were against bitcoin, the role of banks in the world economy is extremely important and no one can replace it, including bitcoins. We don't need to exaggerate bitcoin and there are always hostile thoughts about why banks and governments are against bitcoin. If governments and banks against it, why are more and more countries legalizing bitcoin and bitcoin gradually becoming more popular?
Well now we can see that banks were initially threatened by bitcoin but now they have chosen to embrace bitcoin & you can see that is very evident through the purchase of the new Bitcoin ETFs. We have been seeing the largest bankes disclosing their holdings now of Bitcoin ETFs and that is incredible for the space! The banks will embrace bitcoin!
As I said, bitcoin has never had the ability to threaten banks or governments nor was it created by satoshi to create that hatred. Initially, governments and banks were not friendly to bitcoin, simply because bitcoin was a new asset that was highly volatile. They need to be wary of it because they do not know whether it will bring benefits or harm to them and the national economy. But as things gradually become clearer, they feel that it is not as dangerous as they were once wary of, so it is understandable that they gradually become friendly with it. Everything takes time to adapt to, just as many of us were skeptical about bitcoin before trusting it, so why do we think so poorly of banks?
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.
The question is s, who's the bank and who's the government? They are same set of people under the financial system and their interest, policies and objective are twined. The banks are more like an agents of the government through which the government can use to bar and frustrate any other rising financial system that tend to be of a treat to their power of control and bitcoin is one of such with it's decentralized protocol. Which makes puts me in the right by referring the bank as a middle too.Nonetheless the bank and the government are not the same. Understand the difference that the bank is not owned by the government. There are many private owner and they don’t have any personality in the government. However, the government under policies use the bank to do and get whatever they want. And that’s because banks follow policies which are set by the government. So government may use the bank as a tool but they are not one.
Answering OP's question, I never thought that banks or governments were against bitcoin, the role of banks in the world economy is extremely important and no one can replace it, including bitcoins. We don't need to exaggerate bitcoin and there are always hostile thoughts about why banks and governments are against bitcoin. If governments and banks against it, why are more and more countries legalizing bitcoin and bitcoin gradually becoming more popular?
Well now we can see that banks were initially threatened by bitcoin but now they have chosen to embrace bitcoin & you can see that is very evident through the purchase of the new Bitcoin ETFs. We have been seeing the largest bankes disclosing their holdings now of Bitcoin ETFs and that is incredible for the space! The banks will embrace bitcoin!
It is wrong to say the bank is not against bitcoin because if you refer to what I experienced a few years ago when I worked at one of the private banks they clearly did not like the bitcoin scheme and indirectly provided a doctrine that there were indeed differences in understanding that were different between the bank system adopted by bitcoin which of course this made a competition because even though the purpose of bitcoin was not as a competitor to the bank but still there would be such an assumption.
No doubt I also previously hated bitcoin because I was part of the bank even though I was only a small worker there so it was wrong to say the bank did not like and oppose it, it's just that they also couldn't do anything about it because all regulations ultimately did not come from the bank but from the government and the bank could not take care of other problems such as bitcoin because in the end they also had their own duties.
In this case everything refers back to the government but why the government is silent without any more treatment because it goes back to the main problem where bitcoin is currently decentralized and forever like that so the government will not be able to interfere further except maybe stigmatizing and making some buzz so that bitcoin is considered bad but that also ultimately does not have a big impact on bitcoin.
I myself has already experienced this. Months ago, I was in a bank trying to open an account, but when they found out that one of my sources of income is from bitcoin investment, they really become honest with me that if ever unusual amount of deposits will be seen in my account, they’ll close the account with prior notice. So from there, I realized that banks are not actually friendly with bitcoin, even if you are putting high amount of deposits in their bank. Although it’s not the bank that can be totally blame here, but knowing banks are slaves of the government, still I end up hating that bank’s policy that’s too unfair for bitcoin.No doubt I also previously hated bitcoin because I was part of the bank even though I was only a small worker there so it was wrong to say the bank did not like and oppose it, it's just that they also couldn't do anything about it because all regulations ultimately did not come from the bank but from the government and the bank could not take care of other problems such as bitcoin because in the end they also had their own duties.
In this case everything refers back to the government but why the government is silent without any more treatment because it goes back to the main problem where bitcoin is currently decentralized and forever like that so the government will not be able to interfere further except maybe stigmatizing and making some buzz so that bitcoin is considered bad but that also ultimately does not have a big impact on bitcoin.
The simple answer to your question is that cryptocurrency will replace banks and no one will need banks.
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