Topic: Why don't banks work with cryptocurrency? - page 5. (Read 1792 times)

In all, I believe that is the major issue cryptocurrencies have when it comes to seeing it as a means of exchange and on a positive note, why people are more into crypto. If there was no volatility in crypto, there wouldn't be the king of profits that investors get from it and wouldn't have been investing in it that much. So, what is a positive for crypto investors is what makes it difficult as a means for exchange hence, it is different from money.

Differences in the system and the political role of the government that hinders cryptocurrency from placing its position as a currency. for now it seems we can only make money from bitcoin, because the government in my country has no sign of using it even during this pandemic. I think crypto will be an alternative payment tool along with the proof in the eyes of the world

They can't, crypto isn't a stable asset it's highly volatility and far different from money, it's going to be hard to see crypto and medium of exchange really because the volatile part doesn't guarantee anything

Banks are indeed very difficult to work with cryptocurrencies, because both have different systems. Moreover, banks are very easily controlled
by the government, while we knows crypto is decentralization, which cannot be controlled by the government. With some differences that exist
in the banking system and crypto, finally crypto is only possible as an alternative payment. Even in some countries crypto is still considered
a threat to the banking system, so only allow crypto as a digital asset.

Spain’s BBVA (BBVA.MC) said on Friday said it was launching a bitcoin trading service for private banking clients in Switzerland interested in digital asset investment.

Very few countries have banks that operate with bitcoin and cryptocurrency. Banks always want its userbase to function under their control. This becomes a hard thing to be done when banks starts to operate with cryptocurrency. Apart from this banks think of hacks, because a single security breach into the banks vault will cause a big loss to the banking system. Though the technology is highly secure there is chance of security breach. Some are interested on the blockchain technology for its good, but hesitant to use cryptocurrencies into banking system.

They can't, crypto isn't a stable asset it's highly volatility and far different from money, it's going to be hard to see crypto and medium of exchange really because the volatile part doesn't guarantee anything

Most of banks are still not working with Bitcoin or any other cryptocurrency. But I believe that it will change in the future. Banks will even line up to do so. Because they won't be able to do without digital currencies. Every day, more people join the digital money world. And at some point, we will stop using paper money also. Then if banks still resist, then they will be gone one by one.

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.

It's a good explanation. But actually, banks have started to work with cryptocurrencies these days. For example, some banks in Texas, USA have started to give place to cryptocurrencies in their system also. And I've heard about some European banks also that they started to do so a long time ago. I think banks are doing this because they don't want to miss the opportunity to attract crypto users.

It's a good explanation. But actually, banks have started to work with cryptocurrencies these days. For example, some banks in Texas, USA have started to give place to cryptocurrencies in their system also. And I've heard about some European banks also that they started to do so a long time ago. I think banks are doing this because they don't want to miss the opportunity to attract crypto users.

I agree with you on the point that banks are afraid of cryptocurrencies replacing them, but it don't think that they are the ones that are directly influencing that decision, if you think about it the central banks controls all the other banks which is controlled by the government, because the value of a fiat currency is based on the economy of the country which is controlled by the different sides of the governmental institutions, which means that governments are the ones that control the currency, and by using cryptocurrency they won't be able to control it.

I don't think it will be as simple as what you say because even though the bank can take collateral for the credit given, the bank will still have problems turning the assets they take.  Like the case of a bank in my country, default on the credit given has a bad effect on the bank.  Bank health is very important for a country because 1 bank in trouble in a country will usually attract other banks.  The financial sector is the most sensitive to the country's economic stability.