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If a bank is a service that provides transaction services, then crypto also functions the same. Many cryptos are similar to banks in that they are centralized. Unlike bitcoins.
I don't want to equate bitcoin with crypto including banks. Apart from all that. The presence of bitcoin as a payment system is able to provide the best that is different, such as managing bank transactions.
Banks are never honest. They take advantage of customer deposits to be rotated which can bring profits through interest percentages.
The central bank does not like the uncontrolled bitcoin system.
Do banks need to be trusted? everyone has the answer.
The central bank must be trusted not to debase the currency, but the history of fiat currencies is full of breaches of that trust. Banks must be trusted to hold our money and transfer it electronically, but they lend it out in waves of credit bubbles with barely a fraction in reserve. We have to trust them with our privacy, trust them not to let identity thieves drain our accounts. Their massive overhead costs make micropayments impossible.
I know that bank collaboration with crypto, such as XRP, is already underway.