Offcourse the Bank will be afraid of Cryptocurrency and the main reason behind that is not the Cryptocurrency is not safe that because the Cryptocurrency will completely eat up the Market of Banks.
Just imagine all the transaction, bills, payments, money transfer, loans, insurance are regulated through Cryptocurrency than how the bank will make a profit as all the money which is involved will be clearly in front of the peoples to whom the Money belonged.
But as you know the Government will never let this happen as they are tied to the Banks so as they can make a profit for themselves as well as ruining the Economy of the country by bankrupting citizens of the country.
Now even, Lloyds Bank, Well Fargo Bank, all Bank of India have banned cryptocurrency because of they know Cryptocurrency will eat up the banks.