Why don't banks work with cryptocurrency? - page 10.

amishmanish

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Quote from: VictorProsh on June 19, 2021, 11:05:44 AM

Quote from: just_Alice on June 19, 2021, 10:20:37 AM

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?

I have been working on this idea for three years.
If this project existed now, then the current correction in the market would allow ETH to overtake Bitcoin in capitalization.
You are the first to read it, everyone reads only the headings.

Sometimes I wonder if people like you are conmen or just plain stupid to harbor such delusions.

That whole crap of a "project" is talking about this idiotic idea of pooling everyone's Ethereum in a smart-contract and that smart-contract giving out some tokens in return.

Then you go on wasting so many words on declaring "ETH-WORLD will increase in price", "ETH-WORLD will be stable and banks will buy it" with zero backing of your arguments. This idea is nothing new. People have been trying collateral based stablecoins for a long time and are doing a much better job than calling a 42 point document as their "project". The time i wasted in skimming through that absurdity is now forever wasted.

sumant

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Bank is a Centralized institutions mananged by country supremo but bitcoin is decentralized nobody has control over bitcoins. We can make transactions in btc independently then how bank work with cryptocurrencies. Even now bitcoin adoption not done by many country. There always a confusion about bitcoin regulations in some parts of world's. In bitcoin now lots of money goes into that from arround the world so this questions answer will come from all government buddies in very short times.

bocyaj

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Quote from: Vishnu.Reang on June 22, 2021, 08:51:16 AM

There have been some significant developments recently and they explain the hostility from the part of banks. The most important one is what happened in El Salvador, where Bitcoin was made a legal tender. And this put Bitcoin as a direct competitor to fiat currency. If an asset is a competitor to fiat currency, then automatically it becomes a competitor to the banking system as well. Because banks will be made obsolete if fiat currency is not there. You don't need bank accounts to store or transact with cryptocurrencies.

It will be good idea and discussed over 3-4 years.But it was not implemented because of the reason,bitcoin was not legalized all over the world.When the people invested their money on bitcoin,the bank should look into the people investing platform.Some bank get legalized of crytocurrency and using it also for the transaction .

carlfebz2

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Quote from: S4VV4S on June 22, 2021, 04:24:23 PM

Quote from: FanEagle on June 22, 2021, 11:25:46 AM

There are now German banks that work with crypto currency, they are not directly in charge of them I believe but they are basically helping people directly instead of being in crypto directly and that is still a thing. In many nation’s banks also work with crypto exchanges, where do you think all those billions of dollars, actually I believe it is over 100 billion by now, in ALL exchanges of the world put their money in? They have tangible fiat currency in their accounts for all those users, you put your fiat in coinbase, and someone else does too, then buy crypto with it, where do you think that fiat goes to? Cash in hand of coinbase staff?

Of course not, it is all in banks. Which means banks all over world have over a hundred billion dollars (my estimate, real number could be different) thanks to crypto exchanges, that is a huge sum and that is indirectly being involved.

It's true that every country has its own policies. Not all of them prohibit banks from cooperating with crypto.

All matters on the government that who do ran off the entire country because not all government would really be having on the same view and treatment towards crypto some would be legalizing it and some would be totally opposing it.

Banks are heavily regulated which it is normal that they would really be abiding on countries laws and since government do love centralization then
expect that institutions are heavily centralized as well.

Its not that both cant work to each other since we have seen that there are banks that do adopt out crypto but not really that great in numbers
but at least there are still some consideration.

VictorProsh

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я открыт

Quote from: Tahsin Kabir Kollol on June 20, 2021, 11:46:56 AM

Banks do not want to deal with cryptocurrency because of its unique features. There is a big difference between conventional currency and cryptocurrency. Banks use conventional currencies in various ways to meet their own and the government's various needs and print additional currencies if necessary. Cryptocurrency, on the other hand, is a decentralized currency and cannot be fully controlled by banks or the government. Moreover, since cryptocurrency is not known as the currency of a particular country, the government or banks of each country do not consider it appropriate to use it as it is not their own currency. So for all these reasons banks do not want to work with cryptocurrency.

It seems to me that you did not understand the main idea of my project. Currently, the entire world economy is run by the US financial system. To guide all transactions in the world, the dollar and Treasury securities are practically used, which this country "prints" at its discretion because there is no other single independent arbiter against whom everyone could count their GDP before, it was gold, now it can become Ethereum.

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 US Treasury Securities, we get a financial model of a new decentralized economic system based on cryptocurrency. I implemented all this in my project.
http://prosh.info/smartcontract.html

S4VV4S

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Quote from: FanEagle on June 22, 2021, 11:25:46 AM

There are now German banks that work with crypto currency, they are not directly in charge of them I believe but they are basically helping people directly instead of being in crypto directly and that is still a thing. In many nation’s banks also work with crypto exchanges, where do you think all those billions of dollars, actually I believe it is over 100 billion by now, in ALL exchanges of the world put their money in? They have tangible fiat currency in their accounts for all those users, you put your fiat in coinbase, and someone else does too, then buy crypto with it, where do you think that fiat goes to? Cash in hand of coinbase staff?

Of course not, it is all in banks. Which means banks all over world have over a hundred billion dollars (my estimate, real number could be different) thanks to crypto exchanges, that is a huge sum and that is indirectly being involved.

It's true that every country has its own policies. Not all of them prohibit banks from cooperating with crypto.

wxa7115

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Quote from: Haunebu on June 19, 2021, 05:25:58 AM

Isn't it obvious? Why would they want to embrace decentralized cryptocurrencies over their centralized currencies? That would cause them losses in several ways which is why they usually dislike cryptocurrencies.

On the other hand, many banks have openly embraced the technology behind cryptocurrencies like BTC which could help their improve their centralized currencies.

They could offer cryptocurrencies as alternate payment methods though if their governments permit them to do so.

It is that obvious, for years banks and governments have waged a war against cash trying to limit how you could spend it as it gave you the ability to spend your money in a way they cannot track, they use the excuse this is to combat terrorism and drug cartels but we know this is not true and they just want to monitor all their citizens.

Bitcoin has destroyed those plans, now even if they eliminated cash bitcoin will still exist in a network they cannot control and they will do everything they can to not support it, just as what we are seeing at El Salvador already.

FanEagle

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There are now German banks that work with crypto currency, they are not directly in charge of them I believe but they are basically helping people directly instead of being in crypto directly and that is still a thing. In many nation’s banks also work with crypto exchanges, where do you think all those billions of dollars, actually I believe it is over 100 billion by now, in ALL exchanges of the world put their money in? They have tangible fiat currency in their accounts for all those users, you put your fiat in coinbase, and someone else does too, then buy crypto with it, where do you think that fiat goes to? Cash in hand of coinbase staff?

Of course not, it is all in banks. Which means banks all over world have over a hundred billion dollars (my estimate, real number could be different) thanks to crypto exchanges, that is a huge sum and that is indirectly being involved.

Vishnu.Reang

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There have been some significant developments recently and they explain the hostility from the part of banks. The most important one is what happened in El Salvador, where Bitcoin was made a legal tender. And this put Bitcoin as a direct competitor to fiat currency. If an asset is a competitor to fiat currency, then automatically it becomes a competitor to the banking system as well. Because banks will be made obsolete if fiat currency is not there. You don't need bank accounts to store or transact with cryptocurrencies.

arallmuus

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Quote from: imstillthebest on June 21, 2021, 10:45:42 AM

banks are not afraid but they want crypto become regulated by them . if there are afraid that would be us people because we dont want cryptos to be regulated

To be honest, I only understand like half of that sentences that I quoted but I get the rough point of it.

Even if somehow the majority countries regulate crypto ( although I kinda doubt that this will actually happens ), it doesnt means that it would be compatible with banks. Banks are centralized while cryptocurrency is not so both are contradicting each another. Aside from that, bitcoin was initally invented as p2p transfer system and that means we can ditch bank if most people start accepting cryptocurrency

AndySt

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Quote from: dezoel on June 21, 2021, 05:31:19 PM

Banks are the real financiers, they handle everything that has to do with money and their way of making money is giving it to those investors and the investors will then have to pay back the money that has been borrowed with interest. The interest on top is their profit that they are getting and it’s fixed. They don’t have to invest in Bitcoin directly, that’s totally wrong, since Bitcoin is a very risky asset which is volatile and the money these people are handling are money that belongs to people, so they shouldn’t be taking such a risk.

Banks may be happy to engage in such risky things, but the banking sector is a regulated area on the part of government agencies, so banks are not allowed to engage in such risky operations much. Another serious danger is that if large banking structures come to the cryptocurrency market, they will completely bend this market under themselves, and monopolization usually does not lead to anything good in the end, and the legendary Satoshi Nakamoto would hardly be delighted with such a prospect. Therefore, on the one hand, it seems that we would like banks to participate in working with cryptocurrencies, on the other hand, there are serious concerns about this.

dezoel

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Banks are the real financiers, they handle everything that has to do with money and their way of making money is giving it to those investors and the investors will then have to pay back the money that has been borrowed with interest. The interest on top is their profit that they are getting and it’s fixed. They don’t have to invest in Bitcoin directly, that’s totally wrong, since Bitcoin is a very risky asset which is volatile and the money these people are handling are money that belongs to people, so they shouldn’t be taking such a risk.

imstillthebest

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Quote from: Pandji02 on June 19, 2021, 04:18:56 AM

Because the majority of them afraid of crypto regulation, thats all. Crypto is still a shady thing in almost every country

banks are not afraid but they want crypto become regulated by them . if there are afraid that would be us people because we dont want cryptos to be regulated and why cryptos are shady when the word cryptos are everywhere , in the net , tv's , radios . its not shady but it was risky if you treat cryptos as an investment . some banks have worked with crypto but some dont because it makes their fiat useless .

tyz

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Quote from: Pandji02 on June 19, 2021, 04:18:56 AM

Because the majority of them afraid of crypto regulation, thats all. Crypto is still a shady thing in almost every country

Banks must undergo a regulation. Investing in assets that are not regulated is therefore dangerous for them. In addition, banks always want to hedge their investments, e.g. with swaps or options. These do not (yet) exist in the crypto sector, so investments in the crypto sector would currently be very dangerous for banks. In my opinion, that is the main reason.

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Quote from: Kez1817 on June 20, 2021, 10:19:27 PM

Banks is centralized and a partner of the government who doesn't have any control over digital currency which is decentralized. So, I don't think if one day banks will work with cryptocurrency. If ever it will happen , then it's good for us. It's more likely that government will also legalize the digital currency.

We can get benefits from crypto and the banks because we can convert crypto to fiat without worry. But we do not have to convert in a big amount to make the banks suspicious and investigate our account in crypto or exchanges. So the banks now do not want to work with cryptocurrency but if in the future, everything is change and people prefer to use digital currency, the banks need to evolve and maybe fiat will change into digital. But we already see that is happening now because many mobile phone platforms can accept the transfer from bank to the platform, so people can directly use their money in the digital form.

danherbias07

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I think when you sum it up, everything will still end up with the volatility problem. But if they can use it for their own profit then why not.
Local wallets and exchanges can survive it up until now and bankruptcy had never been an issue. So why can't a bank just take the risk of using the same method like those exchanges does?
Maybe they are doubting that their investors will find it hard to understand how it will work. Just a good explanation may suffice but I think its also the traditional way that stops them.

swiftbits

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The bank works by circulating their money. I think it would be hard for Cryptocurrency to do that.
The price is volatile, so investors, lenders, and borrowers would have difficulty adjusting to the system.

Nunoluck

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There are so many reasons for that. It's depend on the government, and when we talk about it then it's not just a matter of economy but also ministry of defense and etc. Some government afraid to accept bitcoin because it is volatile, it can make amateur investors suffer financial loss. Not all of people are smart, there is some people who enter cryptocurrency market when it is bullish then they loss when it is bearish and decided to leave cryptocurrency investment which is the worst decision that can be made. If they will loss they should not sell, just hold and trust bitcoin. Unfortunately many people who came isn't really trust bitcoin and blockchain technology but just for speculative investment so they can easily suffer financial loss. That's my opinion.

davis196

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The banks don't want to work with cryptocurrencies,because the benefit is questionable and the risk is big.
Why would the banks adopt cryptocurrencies?To please 4-5 million crypto users world wide?
How many new customers will be acquired by a bank,that adopted cryptocurrencies?100?1000?
Is it worth it?If I was a banker,I wouldn't bother with adopting cryptocurrency payments.
I don't want to mention all the headaches the bankers will have with central banks,regulators and the government,if they decide to adopt cryptocurrencies.

Xinarae*

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Banks do not work with cryptocurrencies because cryptocurrencies are decentralized and have no government control. If banks start using crypto then they have to convert like fiat blockchain uses a technology called cryptocurrencies which is in fact a database that records all transactions performed on it blockchain is decentralized which means it is not located in a specific location and therefore cannot be easily hacked. All cryptocurrencies are decentralized meaning their values generally do not adversely affect a country's position or any international conflict.

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