Topic: Why don't banks work with cryptocurrency? - page 3. (Read 1792 times)
PayPal has started working with cryptocurrencies and it proved to be very profitable for them. So I am not sure why the banks can't do the same. It is not necessary for them to take a decision to exclude modes of payment other than fiat currency. And although it is true that cryptocurrencies threaten the current banking model, there are a few sectors where both the sides can benefit from cooperation. Cryptocurrency is still in early adopter stage, and if the banks incorporate it into their platform, then in the long term they will benefit.
My instinct is telling me that some of the banks may partially be working with cryptocurrency, they might not bring it to the table for everyone to see but some might be trading anonymously.
I have the feeling that they are in but since they know is risky, they wouldn't disclose it to the public especially when they know that central banks will harm their reputation.
Sometime before the ban of bitcoin in my country, some bank workers were expelled for risking and using customers money to buy bitcoin and after the last collapse, they couldn't balance sheet the money they took for investment.
No, it is well-known that many banks are interested in Bitcoin and crypto currencies in general. This was confirmed by various studies.
Although many banks tend to be conservative and have viewed crypto with skepticism, they are increasingly driven by their own customers to offer crypto products. That's one reason. The other reason why many are still reluctant is the regulatory gap. Banks need secure legal foundations. These are not yet so elaborated and implemented in all areas that many banks cannot invest in crypto at all, even if they want to.
Although bank had a big responsible for the community they are just the one who holds the money cycling in the community and even there's a big Taxes by the Government it can't still bankrupt there bank because of the people who invest big and they just do the same thing. So the Cryptocurrencies is out of their mind and they just focus the local money.
It isn't a had thing to say that banks haven't been able to endorse cryptocurrencies simply because, the government haven't legalised it just yet. Its that simple to understand. Until the government of a nation rounds up cryptocurrency for a legal tender, banks would find it difficult to Its operation within there systems as, the banks are an instant of the government that functions under the control of the central Bank which serves government's purposes. The fact that, the decentralized nature of cryptos and the constantly fluctuating market environment plays a role, the government is the major force behind it not being endorsed by most financial institutions.
You are right but i've seen some banks in my country does really accept nor allowed crypto payments or transactions not like in most of those banks are blocking or closing up accounts which are in relation with those crypto transactions which is something that not new considering that decentralized things is never been compatible with highly regulated or centralized things.Why would really bother? This is something which isnt needed for only one that do need to exist.They do serve out different markets which its understandable
on why there's some sort of competition, erring between the two.
It isn't a had thing to say that banks haven't been able to endorse cryptocurrencies simply because, the government haven't legalised it just yet. Its that simple to understand. Until the government of a nation rounds up cryptocurrency for a legal tender, banks would find it difficult to Its operation within there systems as, the banks are an instant of the government that functions under the control of the central Bank which serves government's purposes. The fact that, the decentralized nature of cryptos and the constantly fluctuating market environment plays a role, the government is the major force behind it not being endorsed by most financial institutions.
In my opinion, banks do not work with cryptocurrencies because they are currencies that have been developed in complex ways and cannot be traced, as they are anonymous and there is no control over the transactions made by users and may be used in many crimes such as money laundering and cybercrime..etc. They look at Only the dark side. As for the bright side of these currencies and this giant technology, they do not look at.
and don't forget to rate the bank, because banks are under the control of the government, where we know the system between banks and bitcoin is contradictory so for now the government doesn't want to lose control, so many countries have created their own digital currency, but this system seems only camouflage of the country's real money
Well.. so many countries have come up with Central Bank Digital Currencies (CBDCs), but it needs to be seen how successful they will be. China was the first, and they introduced the e-CNY (digital Yuan) shitcoin. And immediately after that, they implemented a crackdown against Bitcoin in China. But these measures didn't resulted in any improvement in the acceptability level of e-CNY. The writing on the wall is clear. Whether they like it or not, CBDCs will be considered as a variant of fiat currency and they will not be able to replace genuine cryptocurrencies such as Bitcoin.
Banks have been directly opposed to cryptocurrency since the beginning of the cryptocurrency journey. Because banks always think that cryptocurrency may take their place. Moreover Banks always give antisocial The activity directly blames Bitcoin.
True, if banks legalize and accept bitcoin then it is the same as inviting people to leave banks because people can control their own assets without needing the help of banks, I believe that a lot of negative news about crypto is mostly from sponsoring banks, this I've seen economic discussions on television who campaigned negatively about bitcoin.
Banks have been directly opposed to cryptocurrency since the beginning of the cryptocurrency journey. Because banks always think that cryptocurrency may take their place. Moreover Banks always give antisocial The activity directly blames Bitcoin.
True, if banks legalize and accept bitcoin then it is the same as inviting people to leave banks because people can control their own assets without needing the help of banks, I believe that a lot of negative news about crypto is mostly from sponsoring banks, this I've seen economic discussions on television who campaigned negatively about bitcoin.
Government-controlled central banks are in charge of banks, and they are supervised and controlled by the government. Bank transactions must include the usage of interest or commissions, from which they might profit, and the use of cryptocurrencies will impact their own interests. Because bitcoin is decentralized and anonymous, it will be impossible to trace encrypted transactions, such as those used for unlawful transactions. Furthermore, the price of cryptocurrency is fluctuating, making it difficult for banks to make a consistent profit.
I think that crypto usage is already taking a cut from banks and governments all over the world, and in future that cur will become bigger. I don't think it will be an easy road, until now we had a clear passage because many didn't get all this seriously, but that is changing and I think we will see some greater obstacles before crypto conquer the world.
Banks have been directly opposed to cryptocurrency since the beginning of the cryptocurrency journey. Because banks always think that cryptocurrency may take their place. Moreover Banks always give antisocial The activity directly blames Bitcoin.
I agree most banks are always afraid their system will be replaced by cryptocurrency, whereas from the beginning crypto was created not
to replace the banking system. But as an alternative payment, which makes it easy for users to make financial transactions faster and cheaper.
That's because financial transactions using crypto don't need to go through a third party, as long as we use them. So it is indeed very difficult
to expect banks to cooperate with crypto, but it is not impossible for this to happen. I still believe in the future banks and crypto can co-exist,
although it will take a long time for that to happen.
Banks have been directly opposed to cryptocurrency since the beginning of the cryptocurrency journey. Because banks always think that cryptocurrency may take their place. Moreover Banks always give antisocial The activity directly blames Bitcoin.
Government-controlled central banks are in charge of banks, and they are supervised and controlled by the government. Bank transactions must include the usage of interest or commissions, from which they might profit, and the use of cryptocurrencies will impact their own interests. Because bitcoin is decentralized and anonymous, it will be impossible to trace encrypted transactions, such as those used for unlawful transactions. Furthermore, the price of cryptocurrency is fluctuating, making it difficult for banks to make a consistent profit.
I think that crypto usage is already taking a cut from banks and governments all over the world, and in future that cur will become bigger. I don't think it will be an easy road, until now we had a clear passage because many didn't get all this seriously, but that is changing and I think we will see some greater obstacles before crypto conquer the world.
Government-controlled central banks are in charge of banks, and they are supervised and controlled by the government. Bank transactions must include the usage of interest or commissions, from which they might profit, and the use of cryptocurrencies will impact their own interests. Because bitcoin is decentralized and anonymous, it will be impossible to trace encrypted transactions, such as those used for unlawful transactions. Furthermore, the price of cryptocurrency is fluctuating, making it difficult for banks to make a consistent profit.
because banks always hate cryptocurrencies and think that electronic money is an unclear kind of money roughly "black money" for money laundering criminals so banks and laws in many places are still elusive. Concerned about the long-term viability of BTC, because BTC has no stable value and at any moment it will burst like a bubble.
Aside from that, their clients will find out that dealing with crypto will incur them very cheap fees especially cross-border payments. Fiat transfers are still expensive as compared to crypto. And also, since the government can't control all the transactions in crypto, for them, there are still blind spots and they don't know how to tackle it yet. But I guess, slowly, the concept of blockchain technology will be applied to banking industry.
because banks always hate cryptocurrencies and think that electronic money is an unclear kind of money roughly "black money" for money laundering criminals so banks and laws in many places are still elusive. Concerned about the long-term viability of BTC, because BTC has no stable value and at any moment it will burst like a bubble.
This is not exactly accurate, banks love risk and because they are necessary for the economy to work if they take a risk and they lose then the government needs to rescue them as they are too big to fail, so it does not mater what they do they win, but they do not like bitcoin at all because they can see that bitcoin is a direct competitor and they see as well they cannot destroy it, so they are doing the best they can at the moment to slow down the adoption of bitcoin until they can figure out a plan to destroy it completely.
Makes sense. Credit cards and payment gateways represent a major source of revenue for the banks. If cryptocurrency becomes a popular mode of payment, then it will make credit cards obsolete. The banks definitely don't want this. But at the same time, the banks can benefit from cryptocurrency if they integrate it to their platform. Look at PayPal. They posted record profits this year, after accepting Bitcoin for the first time in 2020. The difference between mainstream banks and PayPal is that the latter looked for a mutually beneficial method where both the sides benefit in the end.
All your statements sound true and so reasonable. Of course banks don't want to have anything to do with cryptocurrency, especially this thing can actually be such a great threat for their existence. Other than that, cryptocurrency is really hard to control, and really risky as well compared to fiat, of course they don't want to take the risk and prefer to play safe, stay in their comfort zone that has been going for years.
This is not exactly accurate, banks love risk and because they are necessary for the economy to work if they take a risk and they lose then the government needs to rescue them as they are too big to fail, so it does not mater what they do they win, but they do not like bitcoin at all because they can see that bitcoin is a direct competitor and they see as well they cannot destroy it, so they are doing the best they can at the moment to slow down the adoption of bitcoin until they can figure out a plan to destroy it completely. 
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
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
The main reason why banks don't work with crypto, it's because decentralization goes against what they believe in. Fiat is centralized and heavily manipulated by banks, while that's not the case with crypto. Something banks can't control will be considered a "target" to them. Some banks are offering crypto services in order to gain a piece of the pie. But the vast majority of them are skeptical because of reasons mentioned earlier. I'd prefer banks to stay away from crypto, as they could harm the decentralization of the Blockchain in the long run. As long as decentralization prevails, people will have an "escape route" from the current monetary system subject to manipulation, fraud, and corruption. With how everything's been going lately, it seems that crypto and banks (Fiat) will co-exist for many generations. Just my opinion
All your statements sound true and so reasonable. Of course banks don't want to have anything to do with cryptocurrency, especially this thing can actually be such a great threat for their existence. Other than that, cryptocurrency is really hard to control, and really risky as well compared to fiat, of course they don't want to take the risk and prefer to play safe, stay in their comfort zone that has been going for years.
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