Why the bank hates crypto
While crypto is becoming more and more popular and adopted by the population, there are also people and organization that are formally opposed to it. Among them, we can easily talk about the traditional banks. And why do I think I'm the good one to talk about it ? Because I just started working for a bank.
I will divide this article into two parts which are, I think, the main reasons bank don't like cryptos at all.
Banks are scared by cryptocurrencies
One of the first point when bank leaders are talking about cryptocurrencies is that they either want it to be regulated or prohibited. Why ? Because if cryptos are too accessible, people may take out their savings held in banking products to cryptocurrency products. While traditional banks are obligated to follow rules, are politically oriented by regulators, governments and laws, the crypto exchanges have not those obligations. Or at least ... they were far from these problems until very recently, but regulators have knocked at the door of the biggest exchange in the world. Indeed, Coinbase is making everything to be as honest as possible with regulators including S.E.C. However, Binance has a different opinion with regulation. The Chinese exchange is developing new features and products without interrogating any regulatory organism, then if they have troubles with it, they negotiate, they roll back, they take decisions to play with the rules while keeping lots of clients.
Of course, those leaders will not tell you that they're afraid, or even worse, if you ask them this question, they will laugh at you, and will argue with fraudulent speeches. "We want to protect the clients", "Bitcoin is based on nothing", "crypto is only here to launder money and finance terrorism". I think the people that reads my articles are smart enough to understand how stupid these sentences are and I don't need to explain why, that would be spitting on your IQ dear readers.
Banks don't understand what it is
The first part was dedicated to the financial institutions understanding that crypto may compete with their lucrative business. that second part will be focused on the financial institutions not understanding cryptos.
And I think there are probably way more people working for banks or other institutions and not understanding it than you think. Even in 2021 and near 2022, most of them must think it is a "nerd" thing or a gambler asset. While during the 2018 bullrun, most of them didn't know what it is, now they just know the name of it : "Oh yes the Bitcoin, I already heard about it" or even worst : "Oh, Bitcoin still exists ?". Those are real sentences you could hear from bank employees, at least in my countries, as we're really really late on this blockchain technology.
I only told about the personal account bank, I mean for a real person. But for the professional ones, it is even worst. Indeed, I heard about multiple cases of company that wanted to be financed using bank loans and had lots of troubles. First, the bank declines, then another accepts, then refuses because the regulators are putting pressure on the financial institutions. As always, they'll give you fake reasons or at least illegitimate reasons such as fighting the terrorist's financement.
Of course, I know most of you are going to talk about banks that are interested by cryptocurrencies, such as the neo-banks, the online banks or whatever you can call it. I've chosen not to talk about it because they're not that much adopted at the moment and most of the world got his account in "traditional" banks.
If you've got anything to add about this subject, then feel free to put a comment just under the article.
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Very well written. Liked your approach. Banks are soon going to come around to Crypto. They will have to adapt