Topic: Why don't banks work with cryptocurrency? - page 11. (Read 1792 times)
No need to generalize all the banks here. One issue may be with the regulations. In countries such as India, the laws regarding cryptocurrency are very unclear and the banks may chose to stay away from this sector in order to avoid crippling fines in the future. But I agree that there may be a few banks that may be concerned that at least some of the cryptocurrency transactions may be linked to illegal businesses. Still, they have nothing to worry in case they are processing transactions for some well reputed exchange with KYC requirements.
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.
Even commercial banks operate on the basis of strict instructions from regulatory authorities. Banks cannot decide on their own whether to work with cryptocurrency or not. First of all, cryptocurrency must be legalized by the state. Then, after the adoption of the relevant laws, by-laws should be created that would detail the work with cryptocurrency, including detailed instructions for banks. Only after that banks will be able to work with cryptocurrency within the framework of the rights granted to them. 
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.
Centralized over decentralized, I don't think that there are people who really engage with crypto will embrace this fact,
if banks start to accept crypto and ask for KYC,
Investors and traders needs to comply and provide that information, those who wanted anonymous system will not allow
this one for sure.
Fourth, pride. It's like admitting defeat.
If ever this happens it will be a whole new world. Yes, just like the song.
Kidding aside, it's really the volatility but there are already stable coins that were created, and yet they won't use it still.
Transparency will also be an issue. They don't want anyone to just peek at every movement they will make. It's not about privacy but secrecy.
If ever this happens it will be a whole new world. Yes, just like the song.
Kidding aside, it's really the volatility but there are already stable coins that were created, and yet they won't use it still.
Transparency will also be an issue. They don't want anyone to just peek at every movement they will make. It's not about privacy but secrecy.
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.
Centralized over decentralized, I don't think that there are people who really engage with crypto will embrace this fact,
if banks start to accept crypto and ask for KYC,
I think there are a lot of people in cryptocurrency who are not really after the decentralized feature. Even in Bitcoin, how many people who are actually joining Bitcoin for decentralization's sake? They're probable lesser than those who got into Bitcoin for different reasons. For example, one may prefer to store his/her wealth in Bitcoin primarily because of the fact that fiat is always depreciating.
Anyway, banks are actually already in the game. They're into crypto already. It's just a matter of time before the huge majority of them are already part of the bigger crypto community. Even crypto custody products offered by banks might sound a lot safer to many people who feel that they cannot properly function as individual banks.
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.
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.
The main reason that banks do not work with cryptocurrencies is the position of government agencies that do not allow banks to fully engage in such activities. Banks in their activities are guided by the rules and instructions that are established by the financial regulator and in this area in different states the situation is different, from a complete ban on such activities in some states, to a cool and skeptical attitude in other states with rare exceptions. Even where it is not explicitly prohibited, there is no necessary regulatory framework for the activity, which for most banks is almost equivalent to a ban.
I think it is mainly because of cryptocurrency's volatility and centralized nature. Bank are under the government's control and its volatility is not as great as bitcoin considering the fact that fiat currencies does not experience massive increases or decreases in value. It is solely based on a certain country's economy on how will the price move for fiat so if you are investing on banks and your country is under the threat of having a downfall in the economy, you shouldn't consider continuing anymore. Instead you should start diversifying your investment in crypto where it will be worth it later on.
In India, RBI had issued a notification banning banks/regulated entities from entering into transactions with entities that dealt with cryptocurrencies in 2018. All the banks then refused to service any crypto exchanges due to the notification. However, this was successfully challenged before the Supreme Court and which quashed the notification and thereafter dealing in crypto was made very smooth.
Recently, some banks were found quoting the quashed notification to refuse services to crypto exchanges. Therefore, RBI again issued a confirmation that its previous notification was no longer valid and that banks are allowed to provide services to crypto exchanges.
There are many nations that did that, or still doing that. In my nation it was illegal for banks to work with crypto companies as well, now there are 10+ local exchanges working with every single bank, and even doing 7/24 wire transfer which I can't do from my bank to another banks account for example, so I could basically send someone money from my local crypto exchange if I want to but can't send them from my regular bank (out of work hours), so they are very supported.Recently, some banks were found quoting the quashed notification to refuse services to crypto exchanges. Therefore, RBI again issued a confirmation that its previous notification was no longer valid and that banks are allowed to provide services to crypto exchanges.
Basically each nation has the same time line, they first do not care, then they care but ban it until they understand what it is, then they let it be once again to see how it works, then they study a way they could make money from it (taxing) then they support it a lot so that they could make money. Not only crypto is a good thing for you, it is a good thing for your nation, India for example would be one of the best examples of that, you see in the future India will support it a lot.
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.
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.
Actually in my country bank already works with crypto or rather online wallets, so what happens is that they give features to the wallets to sell their bitcoin to cash it out using banks or atm, by doing this it solves the problem of fluctuation. This is the best way to approach cryptocurrencies as a bank since banks are too busy with stock markets already, and since everything can be accessed online with cryptocurrencies including exchanges going to banks isn't necessarily required so meaning banks has no way of working with cryptocurrencies unless they create projects of their own or create an exchange using their trademarks.
There is no "logical" explanation, banks do work with cryptocurrency, they do buy them, just indirectly. How? Hedge funds. Hedge funds do buy a ton of banks stocks, all the banks in the world usually owned by many different hedge funds that is why it is basically a full cycle, and hedge funds invest in cryptos as well, which means banks owners are technically buying up bitcoins. Is this enough? Of course not, but they do not have to deal with anything in fiat world, they are saved by governments anyway, they could just give mortgages to whoever they want and they would be still bailed out, in crypto nobody can bail you out.
They could still buy a hundred billion dollars worth of bitcoin, and if the price drops and they sell and make a huge loss, they could ask from government, but they are not ruining crypto that way just yet, which is why it is good that they are not around.
They could still buy a hundred billion dollars worth of bitcoin, and if the price drops and they sell and make a huge loss, they could ask from government, but they are not ruining crypto that way just yet, which is why it is good that they are not around.
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.
I hope that on this forum there are those interested in the development of DeFi who can confirm or deny the idea of my project. I will be glad to any comments and suggestions that will help to reveal in the future the unlimited possibilities of decentralization of future finances.
Agree with 3 point your mention on thread, just summarize in my thought real bank is responsible of their customer account and if something worst in bank happen like hacked etc it would be big loss for them. and also every country had regulation for bank and most of those regulation are not match with crypto characteristic. its not that easy to just make a bank like creating an exchange.
between cryptocurrencies and banks have the opposite nature. between centralization and decentralization, and the most important thing is the role of the government in it which seems to be able to control it, while crypto cannot be treated like that. but there is an elsalvador country that will start using bitcoin legalized in their country Agree with 3 point your mention on thread, just summarize in my thought real bank is responsible of their customer account and if something worst in bank happen like hacked etc it would be big loss for them. and also every country had regulation for bank and most of those regulation are not match with crypto characteristic. its not that easy to just make a bank like creating an exchange.
Sooner or later, banks will still have to work with crypt currency, this is inevitable, which means they need a condition under which the crypt currency will evaluate financial assets as the dollar does now.If you read my project, you would understand a lot.
http://prosh.info/smartcontract.html
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.
Agree with 3 point your mention on thread, just summarize in my thought real bank is responsible of their customer account and if something worst in bank happen like hacked etc it would be big loss for them. and also every country had regulation for bank and most of those regulation are not match with crypto characteristic. its not that easy to just make a bank like creating an exchange.
Secondly, banks are reluctant to accept cryptocurrency due to the current rules for the circulation of electronic money. By the way, these rules will be tightened even more. For example, Russia plans to pass the draft law “On digital financial assets” (DFA). But this project contains a number of contradictions. It recognizes digital currency as a means of payment, however, prohibits the use of it to pay for services or goods. This inconsistency will result in financial institutions simply not being able to process cryptocurrency transactions.
This is quite true in the case of India as well. In India, RBI had issued a notification banning banks/regulated entities from entering into transactions with entities that dealt with cryptocurrencies in 2018. All the banks then refused to service any crypto exchanges due to the notification. However, this was successfully challenged before the Supreme Court and which quashed the notification and thereafter dealing in crypto was made very smooth.
Recently, some banks were found quoting the quashed notification to refuse services to crypto exchanges. Therefore, RBI again issued a confirmation that its previous notification was no longer valid and that banks are allowed to provide services to crypto exchanges.
You can read my article on real news on Indian crypto news here
Banks do not work with cryptocurrencies because they are decentralized and are not accepted due to their volatility. But thanks to the continuous work and the growing acceptance of the community they are gaining more interest in these institutions.
We can add that bitcoin and cryptocurrencies now have Crypto Friendly Banks. As the following article in Tezro points out, a list of banks compatible with bitcoin and cryptocurrencies located in the United States, Canada, and Europe.
We can add that bitcoin and cryptocurrencies now have Crypto Friendly Banks. As the following article in Tezro points out, a list of banks compatible with bitcoin and cryptocurrencies located in the United States, Canada, and Europe.
Quote
What is A Crypto Friendly Bank?
Before we look at some of the best crypto-friendly banks, it is crucial to understand what a crypt-friendly bank is. Just like businesses, cryptos need banks to grow. If there was no access to the fiat economy, for instance, it would have been virtually impossible for Bitcoin to gain the value it possesses today.
https://blog.tezro.com/best-crypto-friendly-banks/
Before we look at some of the best crypto-friendly banks, it is crucial to understand what a crypt-friendly bank is. Just like businesses, cryptos need banks to grow. If there was no access to the fiat economy, for instance, it would have been virtually impossible for Bitcoin to gain the value it possesses today.
https://blog.tezro.com/best-crypto-friendly-banks/
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.
I think you are talking about the blockchain technology but not cryptocurrency adoption directly or maybe I'm yet to observe that but the issue for the banks is control and regulations. Fiat is regulated by the government but no control of cryptocurrency, although few countries are considering such
You mean? many banks have implemented their systems with cryptocurrencies or blockchain,
have you not seen the news that is happening in the world? Asia such as Japan and Korea have given the green light to Bitcoin,
and Panama, ELsavador have also legalized Bitcoin, of course the Bank there is also doing that
have you not seen the news that is happening in the world? Asia such as Japan and Korea have given the green light to Bitcoin,
and Panama, ELsavador have also legalized Bitcoin, of course the Bank there is also doing that
Jump to: