Why are banks against cryptocurrency? - page 6.

uneng

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

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?

Not only it can go in line with banks, as it's already happening at many banks around the world. Here in my country we can already invest in cryptocurrencies through our traditional banking apps, so the bank is a middleman between you and cryptocurrencies. The problem is that you can't cashout your crypto funds from the platform, so the bank has it on their hands the whole time, and as we know, not your keys, not your coins... It's definitely a big issue, although banks don't have any problems in offering this investment opportunity for their customers.

In fact, banks were clever to offer crypto investment opportunities while keeping all the funds held under their possession, so at same time they embrace the advantages of adopting cryptocurrency, they also totally kill the characteristic they most dislike: decentralization.

After all, it seems perfect for them, while for average investors, it's a big setback, since they give up on the main aspect of investing in cryptocurrencies, which is the fact investors can hold their own money on their own wallets without the risk of having their money seized by a central authority.

stomachgrowls

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Quote from: highalch on May 24, 2024, 07:59:52 AM

Simply put, they don't want their users see any bigger profits than their existing investment products can give.

Those, typically funds of funds with sky-high management fees and hidden costs are pretty laughable once you know what to compare to. Still, they're the product banks have the highest profit margins on. Those margins gotta be defended at any cost.

Some more modern banks allow individual stock portfolios, but still, with extreme costs related to a broker. I'm talking about 10 USD plus 0.3 to 1% trading and currency conversion fee for example. (I'm from Europe, this is pretty much the standard pricing here)

Imagine, banks would introduce in-house cryptocurrencies with similar trading fees. Maybe drop the fix trade fee, keep the percentages, even 1% is 100 times worse than an average crypto exchange. Crypto users are not accustomed to these rip-offs, and banks will never be willing to drop down to 0.01%, I can assure you

Banks are profit machines designed to take your money, not make it.

On addition...

Come to think that if people would be having that enough income or profits then there's no one would really be trying out to get those loans and amortizations on which banks offering, on which means that
it would be a less revenue or money making for them. Also, banks are institutions which are highly regulated by the government. If on what government hates, then they would definitely be hating it too.
Here in our country on which it is really that a bit shocking or surprising that there are banks offering or allowing crypto transactions or even allows incoming or outgoing transactions without questions asked
but just as expected on the moment that you would be able to hit up those threshold then you would really be that definitely be ending up on being asked on why it is really that too big.
Where it do came from? DANG, it was a trap then those funds are locked.

This is why its not really surprising that they would really be hating crypto that much. There's no way that they could control people about their funds and with having that full transparency
on which know that this is something that where crypto is really known for and been much supported. Government doesnt really like crypto no matter what
since it is really that against on what they do like on which on having that full control which it would be understandable.

Rockstarguy

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

(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.

I don't think bank have any problem against cryptocurrency. Goverment makes the rules and banks have no choice than to do what the government wants. Banks not trading cryptocurrency, exchanges delisting fiats, and so on, decisions like these are made by government and not by the bank. The reason for all these is because the government sees bitcoin as a threat to the traditional currency just because they can't control bitcoin and they try do everything to frustrate investors from using Bitcoin .

People are aware of how Bitcoin is a good asset to invest , unlike the fiat hodling it for a longtime can't yield good value instead it depreciates in value. The government thinks bitcoin is making people to lose interest not to save money in the banks. If government csn fully accept Bitcoin I don't think their will be any bank policy that will go against bitcoin.

Onyeeze

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For me I think your Banks is against Bitcoin because it is a decentralized currency and when looking at it government does not have any power to control in Bitcoin so that is why bank and want to turn Bitcoin to a centralized currency which it cannot happen because bitcoin is not being controlled by government why bank is being controlled by government so there is total difference between bitcoin and the Fiat currency which I know very well, so anything bank is analyzing in Bitcoin is what government of that country is emphasizing to Bitcoin in that particular country any country that the banking system is against Bitcoin that means the government of that country is also against Bitcoin technology

armanda90

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Its common question about why bank against or hate with cryptocurrency present, currently Bank benefit or earning profit every years depend on the costumer saving fund. When cryptocurrency become more popular in the future and most of people prefer holding their money in bitcoin make bank difficult get fund how to operate their business trough loan way. Bank unhappy with cryptocurrency present and try how to make people aware or scare when investing their money in cryptocurrency and give benefit for saving and make deposit for long term period by holding in the Bank.

Actually earn much benefit when saving money in cryptocurrency behind has own controlling not depend on third party such as the Bank and other side our assets get increasing depend on price moving up or not. I think Bank always try to against cryptocurrency and give bad side for every one have planning to hold or moving their saving money in the bank to be cryptocurrency assets investment for long term or short term.

retreat

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This has been discussed a lot and the reason for banks to oppose cryptocurrency is clear that they are worried that more and more people will use cryptocurrency to make transactions and that will reduce the number of people using banking services. In fact, not only banks, but also investors such as Warren Buffett, Bill Gates, and many other senior investors also don't really like the presence of cryptocurrency because it is prone to speculation and is like a money game for them.
However, whatever their opinion on cryptocurrency, it will not change my view of cryptocurrency one bit, because with or without them, the crypto market will continue to develop in the future.

highalch

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Simply put, they don't want their users see any bigger profits than their existing investment products can give.

Those, typically funds of funds with sky-high management fees and hidden costs are pretty laughable once you know what to compare to. Still, they're the product banks have the highest profit margins on. Those margins gotta be defended at any cost.

Some more modern banks allow individual stock portfolios, but still, with extreme costs related to a broker. I'm talking about 10 USD plus 0.3 to 1% trading and currency conversion fee for example. (I'm from Europe, this is pretty much the standard pricing here)

Imagine, banks would introduce in-house cryptocurrencies with similar trading fees. Maybe drop the fix trade fee, keep the percentages, even 1% is 100 times worse than an average crypto exchange. Crypto users are not accustomed to these rip-offs, and banks will never be willing to drop down to 0.01%, I can assure you

Banks are profit machines designed to take your money, not make it.

Learn Bitcoin

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This is not something new. Banks have been against cryptocurrency since the beginning of its journey. The reason is so simple. Banks want to use your money but if you have an alternative options where you can keep your money, it is not good for the banks. Cryptocurrencies are bank destroyers and you cannot expect banks to like cryptocurrency.

Even though some banks says they are crypto friendly in some countries, yet when their customers use cards to pay for their crypto, the banks asks for documents. I have translated a thread where a Romanian guy replied to the banks in a funny way when they asked him about his vacation and what he is going to do with his money. LOL.

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Quote from: Kelvinid on May 24, 2024, 06:50:03 AM

They are not against cryptocurrency, particularly Bitcoin but just hate how it going to be when people, their clients will no longer use banks as they switch to crypto wallets with less hassle and faster transactions. But why still a lot of people continue to use banks even if they are Bitcoin investors? It is a fact that we know that people still looking for a place to secure their money without worrying that any time we might lose their money due to hacking incidents. That is why I still don't believe that the existence of cryptocurrency makes banks issue bankruptcy because many people still trust the usual banking system.

Until now, banks still dominate the market. Maybe someday, cryptocurrency dominate when risk issue solve and hacking incidents slow down or it all gone in order to gain confidence.

The fact is that most people do not have the desire to spend time and effort to take advantage of all the benefits of cryptocurrencies and therefore they are satisfied with the services of banking institutions. Those who live on a salary, they don’t care. And those who managed to earn money and continue to improve their financial situation do not want to share with the state. Because the state robs people to a greater extent. That's the whole difference.

Kelvinid

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They are not against cryptocurrency, particularly Bitcoin but just hate how it going to be when people, their clients will no longer use banks as they switch to crypto wallets with less hassle and faster transactions. But why still a lot of people continue to use banks even if they are Bitcoin investors? It is a fact that we know that people still looking for a place to secure their money without worrying that any time we might lose their money due to hacking incidents. That is why I still don't believe that the existence of cryptocurrency makes banks issue bankruptcy because many people still trust the usual banking system.

Until now, banks still dominate the market. Maybe someday, cryptocurrency dominate when risk issue solve and hacking incidents slow down or it all gone in order to gain confidence.

Essential10

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I want to be clear about one thing, all currencies in the world are not the same so I don't think every country's banking system will consider Bitcoin as a competitor. We usually calculate the asset value of any coin in terms of the US dollar value, so I would say that if the US dollar was used as the single currency of all countries in the world then I think all countries' banking systems would consider Bitcoin as a competitor. Few people in the world use cryptocurrencies, most people in the world do bank transactions and even those who are involved with Bitcoin. I think when two-thirds of the world's people use cryptocurrencies, maybe the banking institutions will start speaking out against digital currencies like Bitcoin.

Promocodeudo

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Banks may be against cryptocurrency but they cant help it, it is only the government that put up some policy against the thriving of cryptocurrency in different countries thats is because they notice that they can't control it, the major reason why the government hate cryptocurrency is because since Bitcoin come into existence individuals are losing interest in the banking sector for some reasons, some people has come to understand that bitcoin is a good asset and investment thats very much beneficial to its investors if they invest and hold for a longterm, if you decide to keep your money in the bank just know that you are indirectly enriching the banks because they will loan your money to establishments that need the momey with a good interest rate but in return they will give you anything they feel like as interest and in one way or they other they will tax you and collect the money back, Bitcoin has come to eradicate exvessive taxing system by the government and their institutions, we all know that the government do not like challeng or transparent system that why they will continue to be against cryptocurrency.

Nothingtodo

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All the problems that arise in the banking sector can be easily solved in digital currency i.e. Bitcoin. Moreover, if you deposit money in the banking sector, the amount of interest given by holding bitcoins is likely to be many times more profitable than that. That's why central banks and governments never go for Bitcoin but always stand against Bitcoin.

MusaMohamed

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Quote from: yazher on May 24, 2024, 05:38:31 AM

They see bitcoins as competitors and they get affected by it every time a new investor learns how to secure his bitcoins more than the banks can secure his money.

Banks can consider Bitcoin as a competitor or only a risk factor for their bank operation because banks and traditional finance have more regulations on money laundering. Banks don't want to integrate Bitcoin into their bank system and services provided to users because big fear that their businesses can be affected by products related to Bitcoin and cryptocurrency.

Quote

That's why those banks that are much affected are using influential people to talk negatively against Bitcoin and they sometimes hire groups to continue spreading lies about it.

They know that people want to have their own banks and Bitcoin, cryptocurrencies with non custodial wallets provide people great tools to have their own banks.

yazher

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They see bitcoins as competitors and they get affected by it every time a new investor learns how to secure his bitcoins more than the banks can secure his money. That's why those banks that are much affected are using influential people to talk negatively against Bitcoin and they sometimes hire groups to continue spreading lies about it. But the crypto market always speaks the truth cause every time they make any baseless theories or any baseless statements that make it look bad to the public, people won't believe it instead they want to learn to invest every time they see the crypto market in bullish mode.

Sonia_123

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The banks are always against it since cryptocurrency cannot be controlled directly and owned and tempered by any entity or individuals like their local currency/banks, as they get enormous rewards and benefits, rewards from their customers like taxations ,loans , regulations, registration of agencies and firms . Money laundering , Fraud confiscating and Frozen of account and other illegalities can easily be done to your account, that is lack of insecurity due to envy and jealousy through any one deliberately just to bring you down .
In cryptocurrency the reverse is the case , nobody controls anybody account , except you are careless with your seed phrase, no third party, security, permission less, immunity , digital currency and decentralization e.t.c.,makes it not convenient for traditional banking to implement also ,the government does not have autonomy on cryptocurrency.

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

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?

Op, to an extent you are correct but you saying that one of the cryptocurrency risk to bank is fraud and scam, if I May ask is it today that cryptocurrency started and ever since they started how many person or people have you heard they scammed. Before now those are something that have going on and just like what most people replies above, it's not bank that is doing it is the government, bank is under government so what the bank do is give report on what they are seeing, the rate at which people are moving money from bank to their crypto wallet and if you check very well most people don't save money in bank again because of the charges they use to collect even when they are using our money to trade, buy shares, land, properties etc and be making profit with our own money without adding anything to our own money. so right now people don't too save in bank again most people feel it is not safe for them to save money in the bank.

G-aluminum

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Banks are often cautious over cryptocurrencies for several reasons, one major concern is that cryptocurrencies operate outside the traditional banking systems which can potentially challenge the bank role in financial transactions, it can also be harder for banks to monitor and regulate transactions raising concern about money, laundering , fraud and other illegal activities

Antotena

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

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.

Banks are not the one that hate crypto, it's your government that hate crypto because they own the banks and the banks are for their own profits, so they policies people to avoid cryptocurrency or they dance to their music for not listening to the rules set aside and guess what, they love the taxes, isn't that hypocrite of them? Sad

Look at a whole 30% interest they want from crypto investment, their own system of investment isn't favouring people and because they don't want to lose people into crypto, they raise the taxes to discouraged people.

One thing you should know why Bitcoin/crypto stand is that it's a stand alone network, it doesn't need a single person permit before it can work, Bitcoin network has never stop working for once ever since I know it but my local banks has run out of network since yesterday until this morning before it finally come online and it has done this countless, this is to tell how failed banks has been but we didn't recognize this earlier until bitcoin came into limelight.

Asiska02

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Quote from: oktana on May 21, 2024, 06:45:10 PM

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 government own and regulate the banks. All other private banks are been controlled and regulated by the central bank of that country, they can’t do or undo anything until they get the permission from them which makes them centralized under the government. Bitcoin have been able to close that bridge and make it difficult for government to regulate and keep rules for. One thing about government fighting bitcoin is that, what you don’t create, you can’t destroy it. The customer base of these banks which in turn replenish back to the central banks from revenues generated from their staffs through tax has become difficult and not optimally sustainable for them after the introduction of bitcoin, so they will fight bitcoin will all they have but cannot still achieve what they aimed at.

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