Topic: Why don't banks work with cryptocurrency? (Read 1792 times)

Crypto is considered as a threat to banks' existence, simply because no one can control it due to its decentralized and censorship-resistant nature. Why would banks work with crypto if they can't manipulate it at their own will? For this and many other reasons, banks will stay away from crypto as much as possible.

I wouldn't worry about banks' support towards crypto since it was never been about replacing the current monetary system. Fiat will eventually evolve into a CBDC, making banks even more powerful than usual. What's important is that crypto stays decentralized so that it could stand the test of time. As long as it stays that way, it'll live alongside Fiat for generations. Just my thoughts

Simply because cryptocurrencies makes the banks obsolete, and bitcoin is a decentralized currency that no one controls it while the banks are a centralized currency that keeps track of every transactions in a ledger and make profits from it. And why would a bank work with crypto when they cannot be the middle man for every transactions that have been made on crypto and bank can't profit in any ways.

I found a video on youtube that explains why do banks hate or don't work with cryptocurrencies.

https://youtu.be/1Y7oHdnHssY

Wow, I looked through your project, though I didn't understand all of it, I think this might be something big and gives a chance to solve the problem. Did you come up with this idea on your own?
Also, am I right in the understanding, that for your project to work there is a need for constant new smart contracts and token emitents? And in the end, a very large portion of ETH holders need to participate in this system, right? How do you attempt to achieve that?

For me is because the price of the crypto is not stable,it can also affect the profit of the bank thats not good in their side.I think someday many banks accept cryptocurrencies for many transaction but in legal process.

Governments control the Reserve currencies and they have the power to print money. The Reserve Banks transfer that Money to the Banks and they distribute it to people in the form of loans. Now satoshi has released a decentralized cryptocurrency that makes them uncontrollable and profitable, affecting a lot of their tax income, which makes them even more disapproved and will hate cryptocurrencies. More than just accepting it,

I think crypto is the new generation and surely banks and governments should deal with it.

Most banks within the world look down on cryptocurrencies and can't control cryptocurrencies. there's more profit in crypto than saving in bank. If banks introduce crypto all people will save in crypto banks will suffer. i prefer to store in crypto because the value of crypto keeps increasing. Savings in banks will remain in one place but thanks to crypto volatility the quantity of savings increases because the value of currencies increases. the govt considers crypto an enormous threat.

I think so. Most banks in the world do not like cryptocurrencies, they always see it as an enemy, which can cause bad influence. The crypto market is growing, the value is increasing, many people will invest in it instead of depositing their savings in the bank. I guess that's the main reason they don't work with cryptocurrencies

Banks require KYC for every client which is in fact it's a contrary to Bitcoin's nature of being anonymous, which seems to be a good advantage for the Banks as they can regulate the distribution of Crypto in the Market as I see it. But! Since Bitcoin is not relatively accepted by a Government, there are some who would tag it as Illegal, legal and neutral so technically that's one of the reasons why banks wouldn't want to handle Crypto since there's Rules or Laws that applies in the regulation of Bitcoin. Plus, the volatility of Bitcoin itself is quite alarming for the banks.

In my own opinion, most of the banks are seeing cryptocurrency as a threat to their financial system. It’s because people are preferring more of a system that gives them full custody of their assets and transferring it from one account to the other without borders. This is what the banks are concerned, because people will be turning to crypto than saving more money in their bank accounts.

As the old saying goes, “Not your keys, not your coins.”

I don’t save much money in banks right now, as most of my savings are in crypto.

There is a logical explanation for this.
First, the volatility inherent in digital assets. The fact is that the main goal of every bank is to make a profit. The slightest fluctuation in the cryptocurrency market increases the risk of reducing all projected profits to zero. Today, cryptocurrency is showing a certain stability, but even despite these indicators, most financial institutions still prefer to provide traditional banking services for corporate clients, whose activities they understand.

Decentralized Cryptocurrency is not controlled or limited by anyone alone, there is no single administrator and regulator. Not a single financial, tax, government organization can influence the actions of participants in the payment system.
Ethereum is a multifunctional virtual platform on which blockchain-based applications (online services) are created. Applications work as "smart contracts (smart contracts)" that exclude third parties (intermediaries) in the transaction process. On their basis, it is possible to create a platform that will stimulate banks to lend against the security of cryptocurrency without fear of losses, and this, in turn, will interest the financial sector to place its assets in cryptocurrency?

In solving this problem, I took as an example the existing US financial system.
Assuming that Ethereum is the Dollar, and the smart contract is the Office of the Comptroller of the Currency of the United States (OCC), and ETH-WORLD tokens are the Securities of the US Treasury, we get a financial model of a new decentralized economic system based on cryptocurrency. I implemented all this in my project, in contrast to the existing Fiat, it completely lacks an external emission regulator and is managed by the smart contract program.
http://prosh.info/smart_eng.html

Banks don't care about that. It's not even a big reason to consider why banks don't work with cryptocurrency. Banks will not function to their original purpose if they don't have any control over their clients and customers. Not siding with the banks but their insured policies gives assurance to their clients that everything is in good hands especially in the case of money fraud, theft, and scams.

Another reason is the chargeback concerns. It's difficult to solve a case of crypto chargeback because, in the first place, there's no first place to start with the investigation. Known several people close to me working in a chargeback division and cryptocurrency-related transactions fraud is one of their number 1 problem.

In my own opinion, most of the banks are seeing cryptocurrency as a threat to their financial system. It’s because people are preferring more of a system that gives them full custody of their assets and transferring it from one account to the other without borders. This is what the banks are concerned, because people will be turning to crypto than saving more money in their bank accounts.