There are some potential conflicts between banks and crypto. For example, banks are concerned that crypto could reduce the use of fiat currency and reduce their revenue from services such as credit cards and loans. Additionally, banks are concerned that crypto could be used for illegal activities such as money laundering and terrorist financing.
Banks shouldn’t be concerned just yet about the so called reduction of the use of fiat currency. Fiat money is for now, what’s legally recognized as money, used as the medium of exchange and somewhat unrivaled as the primary means of making payments so banks shouldn’t fret.
Banks concerned about crypto being used to launder money and fund terrorists? More like unhappy they’re losing out on the revenue that would have been gotten from laundering the funds themselves. Financial institutions have long been used to launder funds as well as fund terrorist organizations and activities perhaps unwittingly.