Topic: Why are banks against cryptocurrency? - page 8. (Read 1141 times)

what makes you think banks can't make money from it? The banks are not the major problem here but the actual problem are the government. If crypto currency and central banks goes in line of agreement to have commission with each other's. They'll definitely benefit from the Bitcoin Just that the government haven't approved it yet, just as I said earlier they're scared of fraud and scams. Because the crypto currency it's a digital system which operates with regulative landscape. So some fear cryptocurrency can be used for illegal activities due to their anonymity, banks have strict anti- money laundering (AML) protocols and may hesitate deal with anything could raise red flags.

Banks tend to view cryptocurrency with caution for a few key reasons:

Loss of Control: Cryptocurrencies are decentralized, meaning they aren't controlled by any one entity like a central bank. This disrupts the traditional banking system, where banks act as intermediaries in transactions.

Volatility: Cryptocurrencies are known for wild price swings, making them a risky investment for banks that value stability.

Regulation: The regulatory landscape surrounding cryptocurrency is still evolving. Banks are wary of getting involved in an area with unclear rules.

Money Laundering and Crime:  Some fear cryptocurrencies can be used for illegal activities due to their anonymity. Banks have strict anti-money laundering (AML) protocols and may hesitate to deal with anything that could raise red flags.

In short, cryptocurrencies challenge the traditional banking model and introduce a layer of uncertainty that banks are generally cautious about.

I think that only those cryptocurrency that are created by central banks and the regulator can go in line with banks. That is, CBDC and those cryptocurrency that they can control (emission, block and freeze accounts, track any transactions).

(0) BANKS ARE AGAINST CRYPTOCURRENCY BECAUSE THEY CAN'T MAKE MONEY FROM IT. Why should a bank, as a commercial organization (a business that makes money from money), be loyal to cryptocurrency, because of which they lose their commissions on transactions?

Exactly, that's been the ongoing narrative and reason for why bitcoin is what it is, it's always been that way for banks, they want something that they can control and they know that they should take the one that's got the lesser risk and so they don't like the idea that bitcoin is almost free access for all and ever volatile, it just doesn't sit with the archaic system that they've got working for them for thousands of years.

It's not just banks but the government itself is actually fighting over its dominion over the wealth of the people. Because if they couldn't control the money, it also means the government has less power over the people.

Not able to get hold of the people means, the people can fight back against the government thus end up in a revolution.

Banks are fighting tooth and nail against cryptocurrency because it disrupts their entire castle. Here's why they're so wary about crypto:

Power Struggle: Crypto is all about decentralization, cutting out the middleman – the banks themselves. They lose control over money creation, interest rates, the whole game.  They're like kings facing a rebellion.

Regulatory Roulette: Banks love a good rulebook, and crypto is the Wild West right now. No clear regulations make them nervous. It's like playing poker with a marked deck, except there are no cards yet, just chaos.

Volatility Vacation: Crypto prices swing harder than a pirate ship in a hurricane. Banks are all about stability, calculated risks. Crypto's like a rollercoaster ride they can't stomach.

Don't get me wrong, some banks are dipping their toes into the crypto pool. But for the most part, they're seeing it as a threat to their dominance, not a welcome partner. They're hoping it's just a fad, a flash in the pan, but the future of finance might be getting a whole lot more democratic, and the banks are definitely not cheering that on.

Hope this helps!

- Aditya, The Bitcoin Guy transacting Bitcoins with https://onelink.to/speed-wallet!

Yes that's just the simple truth no body will seat down watching it opponent take away food from his table the fight of fiat  bank, otherwise know as traditional bank is because of the good record of digital currency is becoming more effective, attractive and  attention deriving to customer than the fiat bank so the investor who as well act as patronizing the government connive to fight just to keep their business moving because of they seat and watch they will be left behind as the digital currency will throw them away from the banking space by taking all their customers leaving them with lesser active that can't sustain the business.

Example many transaction that bank do perform before is no longer in their custody only few with less technology knowledge runs to bank for transportation, it's because this bank will loss more customers so it's normal thing when competition exist the first in the market will fight to condemn the arrival of the opponent just to remain monopoly.

and its hard for banks to accept being defeated now that people are turning into other forms like
bitcoin or crypto when in the past decades or centenial  and now ? they are being alarmed because
of these presence so hate for them  against bitcoin.
good point mate , you are right on that it is more on government that really hate bitcoin
and banks are just another competition .

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.

I wouldn't say banks are against cryptocurrencies because for starters when you say "cryptocurrency" you are talking about thousands of altcoins. Banks and nobody else really cares about altcoins, majority of which are absolutely useless. Not to mention that the bank have created centralized shitcoins known as CBDC or are in the process of creating some (they aren't against something they created themselves).

Bitcoin is different but I still wouldn't say they are "against bitcoin". Bitcoin as a payment system that doesn't need any third party middle men like the banks has effectively made banks obsolete but at the same time bitcoin is not here to "replace banks" so there is no reason for the banks to be against it.

The main reason is because the legislation doesn't allow it. Otherwise in a country like El Salvador where it is counted as legal tender the banks accept it as legal tender as well and bitcoin is not backed by any central authority be it in El Salvador or elsewhere!

The banks don't like Bitcoin because they can't controls it and they can't knows who is the user behinds of Bitcoin. They can't report it to their government if there is a big transaction number so they can only guess and see the transaction in the Bitcoin Explorer.

The banks can't get the tax as what they do with their systems so there is no benefits from the banks. The banks don't wants the other technologies they can't used for their own benefits so they like to against Bitcoin.

I completely agree with what you say, banks are not against bitcoin and cryptocurrencies, on the contrary bitcoin and cryptocurrencies were not created to threaten banks and fiat currencies. Banks have posted warnings about bitcoin, simply because they comply with the law, and they are not wrong to issue warnings to users when bitcoin has not been legalized by the government. Additionally, misunderstandings or controversies surrounding cryptocurrencies and banking are largely due to many cryptocurrency investors spreading false information that bitcoin and cryptocurrencies were created to replace and overthrow the empire banking institutions and fiat. I believe that these misunderstandings will soon disappear as governments gradually accept and legalize bitcoin.

Part of the bitcoin slogan is "Be your own bank", and that's what doesn't like at all to the banks. The fact that people don't need them to hold big amounts of money is something that they are worried about.

The ones who control the money are the ones with power, and just think about all the people who die and the bank keeps their money, what a nice business for them... And the fact that if you take a loan from them they charge close to 80% but if you invest with them you only get 3% annually...

So, from that perspective banks need their users to have an economy dependency with them, and cryptocurrency cuts that dependency, that's why they don't like cryptos.

I find number 5 to be the most likely reason why banks hate Bitcoin and cryptocurrencies, in addition to decentralization and privacy of course.

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.

Adopting Bitcoin will make banks useless because most people will turn to acquiring Bitcoin and using it as a means of payment with ease and with a great deal of privacy, instead of entering into a spiral of routine and complex paper transactions for banks with a violation of privacy.

Because they don't have any control over it and they see cryptocurrency as something that doesn't have any backing that would justify their value, they all think that it's a scam that's laid for them because they want to make sure that they would be the sucker that would buy the magic internet money and end up with nothing to their name and we all know that banks don't like that idea of being a sucker so they spread FUD about cryptocurrency, sure there are some that are genuinely telling people that there are a lot of scammers out there in cryptocurrency space but there's more banks that doesn't want you to use cryptocurrency and instead voluntary enslave yourself to them.

Another reason that I can think of is the fact that banks want to always get the best deals and less risk investment and it just so happens that most cryptocurrency isn't like that and so they don't like that, after all, they're playing with the money of their clients and they can't afford the sudden changes in the value that they're currently holding if they ever consider buying cryptocurrency.

Banks are not against Bitcoin and cryptocurrencies, they only wait for more regulations on this market before they can feel safe enough to provide services for their users to use bank services for purchase, sale with cryptocurrencies.

Before there are clearer and more regulations on this field, banks don't want to take risk for their business by providing services that have relations with cryptocurrencies. When things look clearer, they will join this market because it potentially can help banks to gain more customers, more income and profit.

Bitwise's Crypto Market Review Q4 2023

It has a table for crypto adoption by institutions include banks.

It is not as bad as you think, although cryptocurrency is reducing the earnings of banks in some ways, yet it is not so serious to the point that banks will now deem it as their core enemy. In my country, it was recently noticed that banks are losing tenths of billions of dollars to cryptocurrency yearly and that can't be a lie because, for instance, initially, I was unable to do any transactions without the involvement of banks and other digital transactions that will still later deal with banks, so banks are having it all at that time. And guess what, it was a huge extortion as they set the fees wickedly high, but now cryptocurrency has saved me, how many more other people would it have saved? So banks are losing in one way or the other due to cryptocurrency, but still, they are making their money even as they declare huge profits yearly.

However, what banks are doing that seems to be anti-crypto is not always the fault of the bank but the fault of their regulators. They have to obey the laws of the land even as the central bank and other regulatory agencies are often threatening them with restrictions and sanctions if they do business that is crypto-related.

With centralized establishment as well, banks have their share of benefits in cryptocurrency which shows that they are not entirely enemies because no matter how much crypto you bought today, there must be an equivalent in fiat in a certain bank as cryptocurrency buying and selling are merely being exchanging for fiat currencies, and banks always hold fiat. So, the government and regulators are to be blamed here and not the 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.

You can simply make the link look like this by using the URL code.


And it will show the link on this thread like this: Cryptocurrency risks for banks 2021

When we take it from a business perspective, we've got three choices. One is to make the system more effective than the competing one, and this isn't possible with the traditional banking system. The second choice is to get adopted by the technology, and many banking firms have begun to get used to BlockChain technology. The third is to add the services associated with cryptocurrency to the banks so that they can keep their customers even when the surroundings get flooded with cryptocurrency adoption. There is a saying that when competence is high, there'll be more business. This scenario is different with cryptocurrency because of the innovative technology, which needs to be understood beyond a business perspective.