A recent situation in my country where the banks have been instructed to block accounts related/associated with crypto trading has prompted me to start thinking if these banks are actually happy carrying out government policies against their customers, because some of them seem not too happy about it but look to have little or no choice on the matter.
Can the banks challenge the policies from the government? Are the banks working for the people or the government? is there any possibility that banks can operate freely entirely from government policies?
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Read news article here)
Banks work for themselves and no one else, if they are mad about this then this is not because they want to side with their clients against the policies mandated by the government, they just want to obtain profits with this market as well, and personally I do not see anything wrong with that, I have always thought that you can more easily convince someone by appealing to their self-interests than by appealing to some kind of ideology, so if banks see their financial situation being affected substantially by this they will eventually move their influence to stop it.
Generally speaking the banks work for the government because any treasury positions can be pointed by the leader of the country, usually the President and then confirmed by a legislative body. But that being said, the government is a monolithic and this includes the central banks. Their interests align strictly with maintaining solvency within the currencies they operate out of, and maintain economic activity. The profit motive isn't as glaring, it's about self sustainment more than anything.