Why banks were avoiding cryptocurrency, but now many banks become interested with cryptocurrency!

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2 years ago

About a few months or a couple of years ago so many banks were fighting against cryptocurrencies and this leads for governments also to ban cryptocurrencies from their countries. They were claimed that they are banning cryptocurrencies because it is just a pyramid, but that's was not true there is the reason.

Cryptocurrencies were restricted because it is a decentralized financial project which is not under the control of the government control while people are benefited from it a lot. So that's government need to use currencies in a centralization method such as it in fiat currencies there have a low circulating supply of fiat currency than whats people owns from their bank's accounts, so that means fiat money is used in recycling ways that's why banks have control over fiat money in order to make that cycling well as the following example shows on how fiat currencies are in circulization work through centralized system

While cryptocurrencies in decentralization are working on this simple way as shown in the picture below

So that's why governments and banks was not seeing any potential of cryptocurrencies in the globally economy and that's why they were fighting against it.

But now its looks so many banks become interested in Cryptocurrencies although they were restricting it before by the following reason. Many of people in the world they have heard to use fiat currencies due to the spread of COVID-19 so that's they become in terested in cryptocurrencies because it is untouchable. You can ask why there have so many things which is touchable, so why only fiat considered for spread of viruses? The answer is that as we have said fiat currencies are in a big circling so it passing through many people hands than any other touchable thing.

So that for the reason so many banks clients become not interested with banks and start using cryptocurrencies, so that's why many banks also have become interested to work with cryptocurrencies even if in decentralization system in order to not lose their clients.

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