Why Banks are against inclusion of Cryptocurrency in different Industries and Sectors

Legacy banking has been controlling the entire financial system from the very beginning of modern civilization. In the modern world, every sector of life is undergoing serious transformations. These banks control the flow of finance in every market and region.

With the rise of cryptocurrencies, consumers started relying on blockchain platforms for their financial transactions. Despite the proven benefits and practical applications of cryptocurrencies, traditional banks are hesitant to approve and accept the idea of cryptocurrencies.

These banks explain that the use of cryptocurrencies has more threats than benefits. If you have ever made any transaction for sale or purchase of cryptocurrencies, you will realize that transaction fees are lower and processing time is minimal. There are no 3rd parties involved in these transactions, and all transaction records are public. The transparent nature of cryptocurrencies and independent operations without any external party involvement make these digital assets a real threat to the survival of conventional banks.

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Why Banks are against Cryptocurrencies

Different independent researchers and organizations have conducted studies about the adoption of cryptocurrencies in banking sectors, and more than 63% of participants see cryptocurrencies as a threat rather than an opportunity. Conventional banks are not just against cryptocurrencies; many other industries are also facing limitations by conventional banks. Playing at online casinos is safe and secure, but most banks don’t support payments for these platforms. As a result of these challenges, players have to opt for cryptocurrencies for deposits and withdrawals.

The use of tools to promote responsible gambling was the biggest development in the online casino industry. Conventional casinos posed serious gambling addiction threats, and the online casino industry efficiently handled these challenges. Playing at online casinos is a lot safer and more rewarding than playing at conventional casinos. You can even try gry owocowki online za darmo and enjoy amazing entertainment value. Novice players can get started with little investment, and they have full control of their gameplay habits. Legal authorities also require casino operators to have responsible gambling measures in place.

At a licensed casino, you are more likely to find a sustainable gambling environment. As you can see, the digital changes in different industries are actually supporting the growth of sustainable and safer development. The same goes for the banking and financial sectors, where cryptocurrencies are making some positive changes. Here are some common reasons why banks are against the use of cryptocurrencies.

Volatility and Risk

If you are into crypto mining or trading, you realize that the prices of these assets are quite volatile. There are different factors that cause the extreme price volatility:

• Speculation
• Market sentiment
• Regulatory announcements
• Technology updates
• Security breaches
• Market manipulation
• Adoption by mainstream institutions

Banks want to stick to conventional systems where they are in real control of everything. The use of blockchain technology makes everything transparent and public, where all consumers can see the transactional record, and banks don’t want this. Prices may be volatile, and you need to be careful while choosing the right currency for your needs.

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Decentralized Nature

The prime purpose of creating cryptocurrencies was to get rid of conventional banks. These financial institutions charge hefty fees, and the processing time is quite long. The technology behind cryptocurrencies took care of all the challenges and issues posed by traditional financial institutions. No government or department controls or owns cryptocurrencies, and these transactions are stored on a public ledger.

The decentralized nature of cryptocurrencies diminishes the authority and control of central banks, and most bankers don’t think banks will be able to enter the cryptocurrency market successfully. The decentralized nature of cryptocurrencies has both challenges and benefits.

Know your Customer Compliance

Banks have strict rules and regulations in place to stop any type of illegal activity. On the other hand, banks believe that cryptocurrency platforms don’t have that kind of security measures in place to stop these types of illegal activities. In the modern age, cryptocurrency platforms are also making revisions to ensure strict KYC processes for their customers. Users have to provide their original official documents for approval of their accounts. Soon, these challenges will also be addressed precisely, and users will be able to enjoy secure and safe transactions forever.

Disruption and Competition

This is the biggest reason why banks and other financial sector leaders are against the use of cryptocurrencies. Banks make huge profits with the current systems, and every individual and business relies on the services they offer. The technology backing cryptocurrencies can easily disrupt the existing banking system for good. When users have secure, safer, faster, and more affordable channels available, why would they opt for traditional banks and their services?

The competition posed by cryptocurrencies is quite a challenge for banks, and bank stakeholders don’t want this technology to be available in different markets. The world has already accepted the positive side of cryptocurrencies, and banks will also have to use the seamless power of blockchain and cryptocurrencies.

Conclusion

Not only banks but also different governments are reluctant to accept cryptocurrencies as legitimate and secure payment gateways. The global acceptance of cryptocurrencies is in progress, and within a few years, you will see major developments in the industry that will change the face of conventional banking. Many projects have already been launched where users can even withdraw their cryptocurrencies by using specific ATMs.