To a certain degree, the rise in the value of cryptocurrency such as Bitcoin can truly be said to be a threat to traditional banks, in the sense that when the value of Bitcoin starts to rise, people who had money in banks most times are always prone to withdrawing their funds to invest in Bitcoin so as to reap a little profit as the market soar higher, rather than leaving the whole funds in bank where it yield no profit. But still yet, the role of traditional banks can never be underrated as a medium which aided both the buying and selling this cryptocurrency. Hence, a constant increase in Bitcoin will always lure many into withdrawing their bank funds so as to invest in Bitcoin
The rise of the bitcoin demand already increases the bank fear about the cryptocurrency.This was the reason for many exchanges are saying to link your national identity with the exchange.This was made to monitor the money transactions on your bank and you will be charged for the income taxes to the government.If the money was high,the tax percentage for the transaction to the government will be high.This was reason for the many countries legalise the cryptocurrency in their countries.So the transaction was easily find by the bankers,withdrawing the funds from the exchange to the bank will reduce some money to the traders in exchange.