Re: Why don't banks work with cryptocurrency?

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

In all, I believe that is the major issue cryptocurrencies have when it comes to seeing it as a means of exchange and on a positive note, why people are more into crypto. If there was no volatility in crypto, there wouldn't be the king of profits that investors get from it and wouldn't have been investing in it that much. So, what is a positive for crypto investors is what makes it difficult as a means for exchange hence, it is different from money.

Yes, it's one issue to the banks.

A highly volatile asset can't be accepted by them and most of the banks aren't really looking forward in adopting cryptocurrencies with their services.

But there might be some open-minded banking management that shall adopt this soon in the future. The crypto market is showing unstoppable potential and growth so they won't ignore it.

If bitcoin was anything other than a currency you can be sure that they would have adopted bitcoin already as it is widely known that banks have no problem investing in all kind of speculative assets as long as there is the potential to make a lot of money, the problem is that bitcoin is a direct competitor to their business, and not only it is a competitor it is probably the biggest competitor that they had to face during the last centuries and they do not like this one bit.

The difference being with Bitcoin that banks are not the ones who earn a fee from every single transaction being made on the Bitcoin network. Earnings from transaction fees in the banking system are the easiest earnings you can make. It is all automated and you just let it run and take a cut every single time someone makes a payment. They don't have that guaranteed income anymore if a currency like Bitcoin would overtake that role and destroy that business branch for banks. Not that banks make most money with transaction fees, but as I said it is the easiest money they are making by far. They also have less data available if their customers use Bitcoin instead of their own bank accounts. That's again something banks want to avoid.

That is without a doubt a problem for them, after all it is almost as if they receive free money out of those transactions and not only that banks charge you a fee that depends on the amount of money that you are sending so the fee can be very high if you are sending an amount of money that is very high, but when it comes to bitcoin the fee depends on the size of the transaction and how long you can wait for it to be confirmed which means that someone can send a fortune and pay very little in fees.