Because banks rely on the state, the state controls people through legal currency, and most people will also believe in the state.
All the banks where you spend with fiat currency have records, he will know what all your funds have done, and he will collect taxes based on your expenses.
If you use cryptocurrency, no one knows what you consume and what you buy, it's free.
Topic: Why don't banks work with cryptocurrency? - page 6. (Read 1792 times)
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 regulated financial institutions and will follow whatever the government says through a central bank as its in charge of legislation of laws of the state.
If a bank fails to follow what it's expected of it, it has a lot to lose, which is why if the government says cryptocurrencies are banned in a country it wouldn't want to risk losing its license and existence for not abiding to these laws.
Those are some reasons, same time these banks don't have a positive thought about cryptocurrencies. Some has begun to work with cryptocurrency, whereas majority of the banking services find it a threat for them. When something breaks the intermediary need, automatically it gains importance. This will make them have cryptocurrency out of their control unit. This will change as countries have begun to legalize cryptocurrency usage. If a bank fails to follow what it's expected of it, it has a lot to lose, which is why if the government says cryptocurrencies are banned in a country it wouldn't want to risk losing its license and existence for not abiding to these laws.
it is clear that banks are basically under the control of the government.
it's true it would be great if banks could work with crypto but politics isn't that easy my friend. when an agency is shaded by the government, they will automatically use the rules in accordance with what the government proposes regardless of whether it's good or not because of course the government also doesn't want to lose from this.
and if banks cooperate with crypto, automatic dominance and government monopoly will be a little more difficult because their control will not be strong anymore because crypto is very difficult to control
In my opinion you have it backwards, it is the banks that are in control of the governments and they are pressuring the politicians to not pass laws and regulations that are favorable to cryptocurrencies, and it is not difficult to understand why this is the case, cryptocurrencies are direct competitors against banks and banks for the most part are a monopoly and they do not like the idea of sharing their power so they're going to do everything that they can to avoid this scenario and will only cooperate once it is clear that there is no way they are going to beat this market.it's true it would be great if banks could work with crypto but politics isn't that easy my friend. when an agency is shaded by the government, they will automatically use the rules in accordance with what the government proposes regardless of whether it's good or not because of course the government also doesn't want to lose from this.
and if banks cooperate with crypto, automatic dominance and government monopoly will be a little more difficult because their control will not be strong anymore because crypto is very difficult to control
Banks are regulated financial institutions and will follow whatever the government says through a central bank as its in charge of legislation of laws of the state.
If a bank fails to follow what it's expected of it, it has a lot to lose, which is why if the government says cryptocurrencies are banned in a country it wouldn't want to risk losing its license and existence for not abiding to these laws. I also think the bank doesn't like crypto because it could lose its business to it.
If a bank fails to follow what it's expected of it, it has a lot to lose, which is why if the government says cryptocurrencies are banned in a country it wouldn't want to risk losing its license and existence for not abiding to these laws. I also think the bank doesn't like crypto because it could lose its business to it.
it is clear that banks are basically under the control of the government.
it's true it would be great if banks could work with crypto but politics isn't that easy my friend. when an agency is shaded by the government, they will automatically use the rules in accordance with what the government proposes regardless of whether it's good or not because of course the government also doesn't want to lose from this.
and if banks cooperate with crypto, automatic dominance and government monopoly will be a little more difficult because their control will not be strong anymore because crypto is very difficult to control
In my opinion you have it backwards, it is the banks that are in control of the governments and they are pressuring the politicians to not pass laws and regulations that are favorable to cryptocurrencies, and it is not difficult to understand why this is the case, cryptocurrencies are direct competitors against banks and banks for the most part are a monopoly and they do not like the idea of sharing their power so they're going to do everything that they can to avoid this scenario and will only cooperate once it is clear that there is no way they are going to beat this market. it's true it would be great if banks could work with crypto but politics isn't that easy my friend. when an agency is shaded by the government, they will automatically use the rules in accordance with what the government proposes regardless of whether it's good or not because of course the government also doesn't want to lose from this.
and if banks cooperate with crypto, automatic dominance and government monopoly will be a little more difficult because their control will not be strong anymore because crypto is very difficult to control
it is clear that banks are basically under the control of the government.
Well, they are not under control of the government, but under control of the law. Sure the law is made by the government. But if you see it this way, you can also say, we all are not free because we are under control of the government, too. There are some regulation laws and back must be lawful according to the regulation laws. In crypto just as in other asset forms in which they invest.
Banks are functional under the law created by government. Maybe in future this can happen, as banks are experiencing massive loss due to the increasing usage of cryptocurrencies.
Already few countries have created their own cryptocurrency, and those might work along with the banking infrastructure of the country. Atleast now we've got more countries providing regulations to be followed for cryptocurrency usage. This itself a good move, because earlier more banks stopped services for cryptocurrency related activities.
Another reason is as a result of government policy and control. We all know the banks are subject to a central bank controlled by the government, so it is not going to be easy to accept to work with something that has not been approved by the government.
Well, I agree with this opinion. Bitcoin, which has a decentralized nature, is an independent financial system that is managed by individuals without having to be regulated and controlled by the government. It is unlikely that banks will work for cryptocurrency. After all, cryptocurrencies and their wallets are everyone's bank. Crypto wallet owners are free to use their money. Unlike traditional banks. 
the crypto system is very different from the bank system, where the crypto system can stop the bank's income as pasif income , and not to mention the government policies that control the bank itself, moreover banks can't track crypto transactions, there will definitely be a lot of abuse from crypto itself such as money laundering, and illegal trading with cryptocurrencies.
Banks are subject to government-controlled central banks, which are subject to government supervision and control. Bank transactions must involve their use of interest or commissions, which can benefit from them, and the use of cryptocurrency will affect their own interests.
Cryptocurrency is decentralized, it has anonymity, such as the use of cryptocurrency for illegal transactions, it will be difficult to trace encrypted transactions. And the price of cryptocurrency is volatile and it is difficult for banks to obtain a fixed profit from it.
Cryptocurrency is decentralized, it has anonymity, such as the use of cryptocurrency for illegal transactions, it will be difficult to trace encrypted transactions. And the price of cryptocurrency is volatile and it is difficult for banks to obtain a fixed profit from it.
it is clear that banks are basically under the control of the government.
Well, they are not under control of the government, but under control of the law. Sure the law is made by the government. But if you see it this way, you can also say, we all are not free because we are under control of the government, too. There are some regulation laws and back must be lawful according to the regulation laws. In crypto just as in other asset forms in which they invest.
it is clear that banks are basically under the control of the government.
Well, they are not under control of the government, but under control of the law. Sure the law is made by the government. But if you see it this way, you can also say, we all are not free because we are under control of the government, too. There are some regulation laws and back must be lawful according to the regulation laws. In crypto just as in other asset forms in which they invest.
Erm... Sorry, but I guess I would have to contradict here. Do you really think banks are not interesting in dealing with assets that are easy to bubble? Seriously, they are very interested in dealing with such assets. The reason is quite simple: if they facilitate credit to get the housing/real estate market to bubble, and then see the whole market crash and real estate owners can't supply sufficient collateral anymore because of the decreased real estate value, banks are in a perfect position to now get the collateral at lower prices back than they initially were willing to finance it for.
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.
Banks are centralized, and it is an area of government supervision. The cryptocurrency is decentralized, free from anyone's monitoring and restriction, and cannot provide guarantees like the National Bank in case of transaction errors.
Due to its volatility and unstable prices, cryptocurrencies are prone to economic losses for investors and are risky. The legal currency will not appreciate or depreciate sharply and is relatively stable.
Due to its volatility and unstable prices, cryptocurrencies are prone to economic losses for investors and are risky. The legal currency will not appreciate or depreciate sharply and is relatively stable.
Accepting crypto is of course very risky because of price fluctuations which are like a roller coaster, besides that banks must of course comply with state regulations to maintain fiat so that it is impossible to make crypto as a bank service product.
The government do not allow banks to fully engage in such activities. Banks is centralized and is controled by the government. But digital currency is decentralized,these two are contradictory sides.
But that shouldn't stop them from working together, decentralized only means that there's no authority at the top that dictates what they should. I mean some banks are offering cryptocurrencies in their services and they are doing just fine so it's not like it's not a doable thing. 
The government do not allow banks to fully engage in such activities. Banks is centralized and is controled by the government. But digital currency is decentralized,these two are contradictory sides.
Government disallowed banks not just because of its decentralization, they afraid of the illicit actions of banks management that may follow.
60% of deposits in banks belong to customers and the affairs of banks are to manage them and accrue interests but what will happen when banks use all his customers money on crypto and the whole things crashes, that will be suicide to everyone especially now that it's not regulated and controlled by small groups of people.
Banks are centralized, and it is an area of government supervision. The cryptocurrency is decentralized, free from anyone's monitoring and restriction, and cannot provide guarantees like the National Bank in case of transaction errors.
Due to its volatility and unstable prices, cryptocurrencies are prone to economic losses for investors and are risky. The legal currency will not appreciate or depreciate sharply and is relatively stable.
Due to its volatility and unstable prices, cryptocurrencies are prone to economic losses for investors and are risky. The legal currency will not appreciate or depreciate sharply and is relatively stable.
Accepting crypto is of course very risky because of price fluctuations which are like a roller coaster, besides that banks must of course comply with state regulations to maintain fiat so that it is impossible to make crypto as a bank service product.
"Why don't banks work with cryptocurrency?" Good question. But the answer is simple - for the same reason:
- you are against getting paid for your labor in cowrie shells
- you do not want cowrie to be spent only in a grocery store, but in order to refuel a car, you need to look for a job where fiat or squirrel tails are paid.
- the vacation can be paid only with beads, but they are sold only for euros.
- the euro is paid only in the EU, in other countries the euro is exchanged only for postage stamps with cities.
I hope the meaning is clear? To put it quite simply - fuck they need an asset that is not manageable, volatile, has no simple exchange mechanisms, and most importantly, it does not have an official status of a payment mechanism
- you are against getting paid for your labor in cowrie shells
- you do not want cowrie to be spent only in a grocery store, but in order to refuel a car, you need to look for a job where fiat or squirrel tails are paid.
- the vacation can be paid only with beads, but they are sold only for euros.
- the euro is paid only in the EU, in other countries the euro is exchanged only for postage stamps with cities.
I hope the meaning is clear? To put it quite simply - fuck they need an asset that is not manageable, volatile, has no simple exchange mechanisms, and most importantly, it does not have an official status of a payment mechanism
Primary reason for this is the government regulation towards cryptocurrencies. Banks are fully aware of sanctions being thrown to institutions practicing unregulated form or medium of exchange. Unless they see concrete laws and guideline on how government would handle cryptocurrencies, Banks would not touch this.
It is just what you say. It is highly dependent on the country you are living in, but in many countries there are laws that prohibit banks from dealing with unregulated assets, whatever that may be. In several European countries banks even froze accounts during the early Bitcoin days just because someone received money from someone else for selling Bitcoin on an exchange. That is no problem anymore and the banks I know allow for Bitcoin trading and sending and receiving fiat via their accounts for Bitcoin related activities.
Banks holding crypto themselves and even transacting with it is becoming more and more popular. Although platforms like Corda show that banks are interested in co-developing the platform they are ultimately going to use. Ripple also always worked very closely with banks. Whether they ever will be using Bitcoin on a large scale, I don't know.
My wild mind says that they don't want to deal with assets that are easy to bubble just because of a pump, I myself said it would be very difficult for Crypto to be trusted to become a legal transaction tool in all countries because of the concept it has. How can the government want to relinquish their authority in managing fiat while in crypto there is no centralization of currency in crypto. All are free without interference from the central bank and any country.
Erm... Sorry, but I guess I would have to contradict here. Do you really think banks are not interesting in dealing with assets that are easy to bubble? Seriously, they are very interested in dealing with such assets. The reason is quite simple: if they facilitate credit to get the housing/real estate market to bubble, and then see the whole market crash and real estate owners can't supply sufficient collateral anymore because of the decreased real estate value, banks are in a perfect position to now get the collateral at lower prices back than they initially were willing to finance it for.
This procedure happens in cycles again and again, and following this pandemic and potentially crashing real estate prices, we might be going to see a scenario similar to 2008, one of the biggest bank made bubbles the world has ever seen.
it is clear that banks are basically under the control of the government.
it's true it would be great if banks could work with crypto but politics isn't that easy my friend. when an agency is shaded by the government, they will automatically use the rules in accordance with what the government proposes regardless of whether it's good or not because of course the government also doesn't want to lose from this.
and if banks cooperate with crypto, automatic dominance and government monopoly will be a little more difficult because their control will not be strong anymore because crypto is very difficult to control
it's true it would be great if banks could work with crypto but politics isn't that easy my friend. when an agency is shaded by the government, they will automatically use the rules in accordance with what the government proposes regardless of whether it's good or not because of course the government also doesn't want to lose from this.
and if banks cooperate with crypto, automatic dominance and government monopoly will be a little more difficult because their control will not be strong anymore because crypto is very difficult to control
Jump to: